KAPONGA DAIRY COMPANY.

Taranaki Daily News, 30 August 1921, Page 8

KAPONGA DAIRY COMPANY.

TWENTY-THIRD ANNUAL MEETING* The twenty-third annual meeting of the Kaponga Dairy Company was held in the Kaponga Hall yesterday, when Mr. A. V. Tait (chairman of directors), presided over an attendance of about GO shareholders. ANNUAL REPORT. The annual report, after congratulating shareholders on a successful year, went on to say that “so soon as it became apparent that butter would be more profitable than cheese, a change over tt» the former was effected as expeditiously as circumstances permitted, and of the total milk handled during the year, the proportion devoted to buttermaking was 58 per cent., and to cheese 42 per cent. A small quantity only of casein was .manufactured, it being impossible to undertake this till such time as tie Casein Company were prepared to accept the product, which was only for the last couple of months of the season. Despite these disadvantages, the result of the year’s working has been highly profitable. The stocks with which we commence tte new year have all been written down to a figure in accordance with the decline in value, and with the promise of more settled prices and regular shipping, there is every indication that the coming year will be a highly prosperous one for the company.” STATISTICS. Following are the statistics for the year 1920-21, those for the previous year being given in . parentheses:— Lbs. milk—Used for butter making, 10,450,551 (642,435) ; used for cheese-making, 8,557,605 (20,767,923); total received, 19,008,156 (21,410,358). Lbs. butter-fat—Used for but-ter-making, 425,511 (25,010) ; used for cheesemaking, 312,103 (808,532); total received, 730,614 (833,542). Lbs. milk—To lb. butter, 20.8 (21.57) ; to lb. factory cheese, 10.0 (9.C1). Lbs. factor}- cheese—To lb. butter-fat, 2172 (2.67). Lbs. whey butter—To lb. butter-fat, .065 (0.55) ; Average test—Year, 3.88 (3.9) ; milk for cheese-making, 3.65; milk for buttermaking, 40. Overrun—Creamery butter, 18.2 (LG). Commercial cheese made, 363 tons Ocwt. Olbs. (940 tons 4cwt. 41bs.) ; whey butter, 9 tons, Ocwt. 141bs. (19 tons IScwt. 561b5.).; creamery butter, 223 tons 19cwt. 571bs. (13 tons scwt. 941b5.) ; casein, 16 tons lOcwt. 571b5.; totals, 612 tons lOcwt. 161bs. (973 tons Bcwt. 42'bs. Expenses per lb. butter-fat to f.o.b.—Without depreciation, 5.7 d (4.37 d ; with depreciation, 6d (4.60 d The balance-sheet showed that tire total output was £111,547 (cheese £47,729. whey butter £2245, creamery butter £60,831, casein £740). Principal items of expenditure uere manufacturing £11,487, requisites £3llO, packing imaterlal £2972, wages and allowances £3927, fuel £1724, cream collection £353, sundries £2Bl, marketing £8540, cartage £385, railage £822, storage £312, freight £4582, pdrt charges £630, discount £366, commission £llBB, salaries £950, Insurance £832, interest and’ rent £693, milk sugar investigation £290, repairs £lOO4, depreciation £1135.

The sum of £73,833 had been paid out to suppliers, and there was a balance of £12,087. CHAIRMAN’S ADDRESS. In moving the adoption of the annual report, the chairman stated that during the year the share basis hi.d been reduced "from 801bs. to 601b5., and on this b.asis additional shares were allotted, absorbing the balance of shares that remained unallotted, viz., 2060, and also a further 1611 that were bought in during the year. It was not intended to Increase 'the capital of the company, as many companies were doing, but. to continue the policy of buying the shares from shareholders who had ceased to supply, and re allotting them to suppliers. This policy would ultimately eliminate all dry shareholders, do pvay with the objection to proxy .voting, and while providing all. the capital required, would be much more satisfactory to ail concerned. The directors wished to make it clear that they did not intend to buy shares from any person who was in a position to supply the company, and did not do so, nor from any person who sold out without taking reasonable steps to see that his successor continued to supply the company. The amount of subscribed capital was increased during the year by £1206, and in addition a profit of £462 was made on stares re-purchased. The policy of accepting deposits at call was proving thoroughly satisfactory, and more money was offered at the outset than they were prepared to accept. Advances made to new suppliers for thils coming season during June, however, absorbed £5OOO, and they were now prepared to accept a certain further amount by way of deposits, which at the present moment stood at about £ 11,000. The investment reserve bad Increased from £lOOO to £1576. the increase being the profit on shares £462, and £ll4 tte profit on loans to suppliers. Additions to buildings totalled £360, and were due to the new concrete whey stand, completing new butter cool chamber, the vat and tank stands in the new butter room. Additions to plant totalled £1509, mainly incurred by rhe change over to butter, and included a new 20 h.p. electrio motor installation. All were at Kaponga. At present they were renovating the old butter factory at Kaponga, which would be converted into a store room for their stocks of supplies. Owing to the change over to butter their cheese supplies were nearly as great as at the commencement of the season, though taken in at not much more than half the price, and ihe difference was charged against the year's working, which therefore showed £l5OO more than the value of the supplies actually used. Fuel consumption showed a reduction of 25 per cent, as the result of having electric power at Kaponga for a portion of the year, bearing out what had been stated relative to the ultimate saving when all three factories were electrified. The matter of eleciriI city was made the subject of a further report discussed separately. The question of the purchase of a lorry had been gone into, but as a tender for carting was received considerably below the rate of the previous year this was accepted, fhe directors being unanimously of opinion that the work could not be done as cheaply with a petrol lorry of their own. The company was still bearing in mind the possibility of going in for its own electrically-propelled lorry, and therefore carting contracts would not be made for a longer period than a year.

Legal expenses totalled £l5l, but. £l4O was the balance of the cost of the new articles of association, which was being spread orer a number of years, but the directors had decided to finally write it off this year. The directors recommended that 1 per cent, should again be deducted for the interest in order to write off the milk sugar expenses. This would completely wipe them off, and 4 per cent, interest would be paid instead of 5 per cent. Travelling expenses looked higher than usual, but this was due to certain expenses from the previous year not having been paid till the ensuing year.

The matter of depreciation had received attention, and the maximum amount allowed by the Governunent I:ad been written off.

The total expenses per pound of butter-fat were higher this year, but no higher than their neighbors, due, in their own case, primarily to the fact that this year there was 100,0001bs. less of butter-fat to spread them over. This was not. due to a less number of suppliers, but to climatic conditions, and also

because it was the first year for a muck larger number of suppliers than usual. They bad not had such a small quantity of but-ter-fat to handle since 1910, and such n lessened quantity was. of .course, a big handicap to a pay-out. For the coming season the prospects as regarded quantity of products were good, and they would have a number of additional suppliers. Personally, he believed they were well on the road to a complete recovery from tire serious set-back suffered several years back.

Reference had been made Ih the balancesheet to the disadvantages they had suffered as the result of shipping difficulties, in common with other companies dispatching through Moturoa. But for congestion in the freezing Store there a considerable quantity more cheese could have been got away and caught •he market before it slumped than was actually the case. Had the same quantity of cheese gone forward in proportion to that ; dispatched in the early part of the year by 1 fpmpanies shipping through the port of Pa-

tea, they would have been better off by between £4OOO to £5OOO, and their pay-out would have been at least a %d greater in consequence. Of course this was mainly a matter , of luck, as no one anticipated a plump, and it might equally well have happened that the later dispatched cheese would have realised the better figure. He mentioned this for suppliers’ information when «naking comparison with other companies. The balance standing to credit of profit and loss would provide for an ultimate pay-out of 2s 4d, but so much had had to be estimated that suppliers would be well advised not to count on same befotehand./ Realisations to hand since would, if maintained on the same scale, make it greater, but in these uncertain times it was wisest not to anticipate. At present 2s 3d has been paid for the pcrieb ending December 31/ and Is lid for the past six months. It was proposed to level this up to 2s 3d also by bonuses of 2d payable on the 20th of the next two anOntlis, and

to pay tte remainder as soon as the final returns were available, probably abodt the end of the year.

The directors had decided to again consign through Messrs. J. and J. Lonsdale and Company. Ltd., retaining the right to Sell if they thought- fit. He then formally moved the adoption of the report and balance-sheet. This was seconded by Mr. .7. W. H. Gardner, and carried with practically no discussion. ELECTION OF DIRECTORS. For the two vacancies on the directorate there were three nominations, and the election resulted as follows: G. R. Kill 179, W. E. Holland 149 (re-elected), J. Sheurter 144 Mr. H. A. Lennon was re-elected auditor. GENERAL. It was resolved to have the results of the Cow Testing Association published each month. A suggestion was made that the annual meeting should be held in the evening instead of the day, taking the form of a smoke concert. This was proposed by Mr. King and seconded by Mr. Joyce, but failed to obtain much support. e Votes of thanks were accorded the manager, the staff, and the Press. In reply to Mr. Dagg, It was stated that Rowan tied for top place at the Moturoa freezing works, and Kaponga was third for butter and cheese. Riverlea was sixth. Mr. Dagg considered that they should recognise merit., and he unoved that the company vote £5O to be divided between the cheese-makers at the three branches proportionately to the merits of the produce. This was seconded. Another speaker moved in the direction of awarding a prize next year for the branch get ’ng best results. Neither resolution was carried. The chairman and directors were voted the same honorarium as last year. An amendment that the chairman’s honorariurti be increased from £B5 to £lOO, and the directors from £l5 to £2O, was defeated.

Mr. Dagg withdrew his notice of motion that the articles of association be amended so as to provide that each branch separately elects its own representative, stating that he would bring the matter forward when there were other articles to alter.