CAPE EGMONT DAIRY CO.

Taranaki Daily News, 16 August 1921, Page 8

CAPE EGMONT DAIRY CO.

TWENTY-FOURTH ANNUAL MEETING. The twenty-fourth annual meeting of the Cape Egmont Co-operative Dairy Company was held at Pungarehu yesterdaj", when Mr. M. Fleming (chairman of directors) presided over an attendance of forty shareholders. THE ANNUAL REPORT. The annual report showed that when the year commenced the prospects were bright, \ and being the first year with a free market j for some considerable time past, with indica- j tions of shipping being plentiful, a record | season was anticipated. But unfortunately I space was very small and strikes and other I happenings at Home caused the cheese mar- j ket to collapse. Owing to not having a dual 1 plant of sufficient size to cope with the sup- ( ply of butter-making, the directors were reluctantly forced to continue cheese making, i During the year plans and estimates of a I compact butter factory to be added to the I present cheese factory were secured, but on- i ing to the high cost of building the matter was held in abeyance. Advances from August, 1920, to May, 1921, were made at the rate of Is 7d per lb. butter-fat, and whew final returns come to hand the surplus will be distributed by further payments to suppliers. Statistics. —Milk received for cheese making, 8,912,8731b5.; butter-fat, 334,324.71b5.; cheese made, 898,2791b5.; lbs. milk to lb. cheese, 9.92; lbs. cheese to lb. butter-fat, 2.68; average test, 3.75; milk received for butter making, 3C1,1301b5.; butter-fat, 15,G93.21b5.; creamery butter made, 18,5851b5.; over-run, 18.4; average test, 4.34. Whey butter to the .value of £2140 14s was manufactured during the year. The business of the store depart- i meat has been well maintained during the j year, and the sales are a 1 record since the commencement of this department, being £4249 6s 8d in excess of the previous year. The balance-sheet showed that cheese sales totalled £29,544 18s 9d, butter sales £3032 6s, cheese in hand £10,852, butter in hand £1199 12s. The principal items 0" expenditure had been export charges £432, boxes and crates £Bl5, cartage £784, fuel £737, repairs £124, stores and requisites salaries £2298, interest £340, London freights £3029. interest on fully paid-up capital £244, directors’ honorarium £96, paid to suppliers £33.506. Ti e store account showed mat goods sold during the year totalled £11,780, and that the profit was £l6 12s 6d. CHAIRMAN’S ADDRESS. In moving the adoption of the report and balance-sheet, the chairman said that this was the first occasion In twenty-four years that he had not been able to congratulate shareholders on a successful year. In past years they had always paid out as high or higher than any other factory, but on this occasion they were right at the other end. This had been brought about, by circumstances ’ over which they had no control. It was due j first, to the delay in shipping and the fact I that when prices were satisfactory only smali I shipments of their cheese were got away. | Moreover, in the early part of the season , colored cheese was selling at from ISs to 2<)s j more than white, with the result that factor- I ies went in for colored, and of their shipment comprising 530 crates of'white cheese and 520 j of colored, the white cheese realised 1245, whilst the colored only realised 100 s, much to their surprise, so that they had lost there also. Taken fight through ho thought the prices they had received during the season j had compared very favorably wiih other fac- : tories that had consigned. There had been i a small increase in the milk supply during the ; year. viz.. 39,1.151b5. Considering the num- ; her of new herds this increase was very small, j The* test was slightly less, but the average j yield, etc., was very good and compared favorably with any other factory. Unfortunately expenses had mounted up. Interest showed an increase of £220, stores and requisites £274, and salaries £3OO. lie said that the cheese on the water had been taken into account at a very conservative basis, and if price? did . not slump he believed that a payment of 2s ! and possibly 2s Id was in sight. If this was I so, they would not have done so badly. He : i..believed the greatest less of all was due to 1 not being in a position to make butler. All through the season they could have obtained 2s Od per pound for their butter at the cool stores, and numerous factories availed themselves of this. Had they been able to do so the factory would have been in a different position. He estimated that they would have been £4216 16s better off, which would have enabled them to pay 3d more. Through the season the directors thought it would be advisable to be in a pos’tion to make either butter or cheese, and had called for tenders for a butter factory to be erected next to the. cheese factory, but the tenders /were too high, and moreover there was the difficulty of finance. The store had shown an increase of £4249 in its turnover, and was in a satisfactory position. He then moved the adoption of the- report and balance-sheet. THE DISCUSSION. Mr. W. R. Wright, in seconding, defended the action of the directors in consigning. Ho said that this year some factories had been offered 11 %d. He would not advise any factory to take ll%d, but this year Cape Egmont could not afford to make a mistake, and he favored selling at Is. It was not wise to accept first offers. Some factories, he knew, had sold at lid. A supplier considered that it was only wasting time to ask questions on the balancesheet. The chairman: "Well, then, let us pass it.” In reply to Mr. Doody, the secretary stated that ll’/Gd would enable them to pay out 24.7 d per lb. butter-fat. Mr. Doody considered that price would be better than going to the expense of erecting a butter factory. Regarding the disposal of the produce, the chairman said that it was impossible for the

meeting to make any hard and fast rule. In not selling they had very good company, viz., Hawera, Kaponga, .Toll, K'ltham, Normanby, etc. He would like an expression of opinion from shareholders as to whether they should sell if an offer of was received. Mr. Wright moved that the action of the directors in leaving the disposal of the cheese at Is a pound in the hands of the chairman be approved. This was seconded by Sir. Brophy and carried, after an amendment by Messrs. Armstrong and Doody to the effect that the cheese be sold, on the votes of the shareholders was lost. The chairman said that he believed they would soon be receiving offers again. The chairman then brought up the question of erecting a butter factory They would never be in a position to compete with other factories unless they had a properly equipped butter factory, which he estimated would cost £3OOO. The directors could not finance this, as their capital was £5146, and they had £3OOO in the Box Company and Moturoa Freezing Works shares, £1474 in store material, and £3216 in plant, buildings, etc. He suggested that they should pay %d per pound

butter-fat to find the necessary share capital. He moved that %d per pound butter-fat be deducted for the purpose of building a butter factory. This would produce £7OO per annum. This was seconded by Mr. Neilson and carried. The chairman said the factory would take three months to build. It would probably be next March before they commenced building, and by that time the cost of building would probably have come down. In reply to a supplier the chairman said that it would be difficult to say when tne final payment for the season would be made, hut it would probably be sooner than anticipated. Mr. Corbett referred to the delay in the pay-out, and considered that the annual meeting should be held earlier. He moved that the annual meeting be held about July 15 each year. This was seconded by Mr. Hamil and carried, the chairman Remarking that it could not affect the pay-out. The company, ho said, could pay out more promptly if shareholders would increase their joint and several at the bank. They would tl.en hare to pay more interest and would, of course, receive less for their butter-fat. ELECTION OF DIRECTORS. Messrs. M. Fleming and P. Brophy were reelected to the vacancies on the directorate unopposed. In returning thanks, the chairman stated that they could take it as a vote of confidence, despite the unsatisfactory year. Mr. G. W, Rogers was re-elected auditor. A vote of thanks was accorded the manager and the staff, the chairman staring that it was not because of the lack of quality that the company had not been able to pay out, for' the mqnager had done his part. Mr. W. T. Guild (manager) urged suppliers to pay attention to the cleanliness of their milking machines. It was almost, useless for the manager and staff to try and turn out a good article if the suppliers sent bad milk. At, a subsequent meeting of directors Mr. .Al. Fleming was re-elected chairman.