AWATUNA DAIRY COMPANY.

Taranaki Daily News, 14 September 1921, Page 2

AWATUNA DAIRY COMPANY.

ANNUAL MEETING. The twenty-seventh annual general meeting of shareholders of the Awatuna Co-operative Dairy Factory Company, Ltd., was held in. the public hall at Awatuna on Saturday. Mr. E. A. Collins (chairman of directors) presided over an attendance of about 65 shareholders. DIRECTORS’ REPORT. The directors’ report stated:—"Tour directors have to congratulate the shareholders on a record year’s operations In spite of some very adverse circumstances having to be continually faced, more especially on the question of shipping and market fluctuations, In consequence of which your directors decided to change on to butter at Awatuna factory, but unfortunately the extra machinery did not arrive in time for the change to be given effect to until January 1. Also the question of casein was considered .early in November, hut owing to the Casein Company being unable to accommodate us we were not in a iwsltion to take advantage of casein manufacture. After writing off £BBl 2s 9d for depreciation, and taking the balance of cheese 3316 crates, now afloat into stock at 8d per pound, the result of the year’s working shows a surplus of £B3Bl 7s 6d, from which your directors recommend a payment of 5 per cent, interest on paid-up capital, which will absorb £379, thus leaving a balance available for distribution of £BOO2 7s 6d, enabling a further payment of 3%d on butter fat to be made, which will bring the payment up to 24%d over the season, with a possibility of a still/further payment when the cheese now afloat is realised. The bulk store has proved quite a successful innovation, as will be seen by the balance-sheet, besides being a great convenience to the suppliers. Your directors recommend that of the profit shown £5O be applied towards the secretary’s salary, £3OO be devoted to a rebate to shareholders on stores purchased, and the balance of £250 3s lOd be transferred to "store reserve."

The following statistics were attached to the report, the figures for previous year being in parentheses:—Milk, 14.882,4231 b (14,302,1701 b) ; butterfat, 567,1201 b (536,6171 b ; cheese madet 1,131,0621 b (1,425,2641 b ; cream butter made, 174,1571 b (6,6631 b ; whey butter made, 27,3441 b (35,6651 b ; pounds cheese per pound butter fat, cured weights, 2.61 (2.61); cheese period, average test for season, 3,81 (3.74); overrun, 19.8 per cent. (23 per cent.). CHAIRMAN’S ADDRESS. In formally moving the adoption of tire annual report and balance-sheet the chairman said their company had been one of the first to take advantage of the Imperial Government’s offer of 2s 6d per lb for butter. The prospects for casein had been gone into very fully, but they had not been able to get any satisfaction from the Casein Company. He had paid a visit to Wanganui, and had found the company trying to instal machinery. Subsequently the bottom had fallen out of ttc casein market, and as the company were not in a position to accommodate them they had decided not to go on with the proposition. In compliance with a. resolution passed at their last annual meeting they had endeavored to form a testing association for last season, but they were informed that they were too late in the field. This year the secretary had got into touch with the Department, but. the shortage of men had been a difficulty. However, they had said that they would do their best to start them. A delegation had been received from the N.Z. Meat Packing and Bacon Co., but they had not taken up any extra shares. The directors had had an opportunity of arranging for electric power from Kaponga, but it had been decided that they would be better served from Opunake. Mr. Toogood had informed him that it was quite possible that the power would be available in their district within 18 months. During the past season they bad shown a rise in their output equivalent to 63 tons. This spoke well for, the suppliers in seeing that as much milk as possible came to th© factory. Assuming that the market remained as it was at present they would make a greater pay-out than had been allowed for In th® balance-sheet. The 3316 crates now afloat had been valued at 8d per lb., but if they realised 9d it would enable them to make an additional payment of Id. If they netted lOd it would mean an additional 2d.

Mr. Tindle seconded, and the report and balance-sheet were subsequently adopted. Mr. Farquhar thought that it was very misleading to give the shareholders any hope of securing a greater price than 8d for the cheese that was at present unsold. He pointed out that' to-day the market was very much worse than it was when tire balance-sheet was printed. He asked what price the cheese would have to be sold at to enable them to net Bd.

The secretary replied that cheese would have to drop to about 90s for them to get below Bd.

In reply to questions, the chairman said they had a twelve months’ supply of wood on hand, which placed them in a safe position In the event of a coal strike.

Tiie directors’ action in not selling their output last season was discussed at length. The chairman said that they had not had an offer to

Mr. Farquhar contended that the directors were not looking for an offer, and if they had called a meeting and made arrangements things might have been different. The chairman said that he understood that buyers were only operating at the small factories.

Mr. Buckeridge bore him out in this statement, and also said that at the time their output was disposed of there were no offers to buy.

Mr. C. H. Hurst said that they knew that some companies who lad sold their output last season had been able to pay out about 3s per pound for butter-fat, and he was sorry that tbeir company did not sell. However, it was unfortunate, but it was no use crying over spilt milk. The directors had done very well.

The shareholders did not let the discussion on this subject rest here, but carried it on for some tkne longer. Some supported Mr. Farquhar’s contention that the directors were not looking for an offer, and another supported an uninterrupted policy of open consignment. ELECTION OF OFFICERS. The following gentlemen were nominated to the directorate from the Taungatara and, Awatuna districts respectively, and a poll resulted as follows: Awatunrt—-S. R. Farquhar 349, M. Bourke 255, T. Haworth 40, and L. W. Johns 39. Mr. iS. R. Farquhar was elected. Taungatara—H. McCarrison . 380, C. H. Hurst 289, Mr. H. McCarrison was re-elected. Mr. H. A. Lennon was re-elected auditor at an increased remuneration of 30 guineas. GENERAL. It was decided that veils be received at the factory and be paid for according to the scale of payments made by the N.Z. Rennet Co. The chairman mentioned that the Pihama and Opunake Dairy Companies were wanting them to co-operate with them in maintaining an independent tester, who would also act as an agricultural instructor. After some discussion the matter was left in the hands of the directors.

The chairman’s honorarium and the directors’ fees for the past year were fixed at £75 and 15s a day respectively, and for the coming season at £lO5 and £1 Is a day respectively. Mr. Farquhar moved, and Mr. .Tone® seconded. that the bulk store be discontinued. The motion was lost.—Star.