THE DAIRYING INDUSTRY.

Taranaki Daily News, 12 October 1921, Page 7

THE DAIRYING INDUSTRY.

.. THE TARIKI COMPANY. •ANNUAL MEETING. The annual meeting of the Tariki Cooperative Dairy Company was held yesterday, Mr. W. V. Harkness (chairman of directors) presiding over an attendance of about thirty shareholders. Speaking to the ieport and balancesheet (already published), the chairman congratulated the shareholders on the year’s working, and said that, as far as prices were concerned, it had been one of the most successful the company had experienced. It was true that some factories had been able to pay out more than Tariki, but in other cases it had not been as much.

The past year had been a very difficult one for the directors. As shareholders knew, it was the first period that they had had a free market for cheese since the beginning of Government control. They had received some high offers for the sale of the output, but as they had always been a consigning factory the directors decided to stick to this principle. They had lost through this, but the majority of factories in Taranaki had consigned. Though thqy were not fortunate they would catch up in the long run, as experience showed that the consigning principle was sound. THE SEASON’S PROSPECTS. The company had had several changes in. regard to administration, namel . the appointment of a new secretary and also a manager. Then, in the middle of the season, there was the change from cheese to butter, and all this threw a good deal of responsibility upon the staff and directors. Shareholders could be congratulated on the decision to go in for the butter plant. When the directors brought the matter up they told shareholders that the plant was estimated to cost £2OOO. Actually, however, they had put in a little more machinery than was at first proposed, and the total cost was only £lBOO. Through the change over the company had made £4569 more than if they had stuck to cheese, so the £lBOO was a good investment, and they still had the asset of the plant. In the present season production was showing an advance over the past year, and if the weather conditions were favorable the company would have a very big increase. Turning to the bal-ance-sheet, Mr. Harkness said it was almost impossible to make a comparison with the previous season owing to the change of policy in regard to manufacture. The directors had not yet decided what to do with the output this year. It was not a question of selling or consigning, because there were no buyers, and the company could not sell even if they wanted to. ‘Last year they consigned through the C.WJS., the New Zealand Market Association, which handled altogether 10,090 tons of cheese and 1000 tons of butter from New Zealand. The output would be put through this channel again, and he anticipated that favorable circumstances would be experienced as far as the actual marketing was concerned. Shipping conditions were also good and the produce was being got away practically as soon as it was made, so there was no congestion. He hoped the consignments would be going forward more regularly and consequently they were likely to get full advantage of the market. What the actual price would be, however, was hard to tell. FINANCIAL POSITION. The company had very little in the matter of liabilities, with the exception of £l7Bl 7s 2d now owing on the Rugby Road factory. There was an instalment of £350 to be paid off, leaving £1431, which was a very satisfactory achievement for the 24 years that the factory had been in existence. The suppliers of Rugby Road were to be congratulated on this aspect. The main factory at Tariki was clear of debt, and all the company had owing was a half instalment on the butter plant. They had paid out to suppliers a total of £32,664, against £28,808 the previous season, so that it would be seen the company had had the money, even if the price was not as high as it might have been. Dealing with wages, fuel, ( and repairs, Mr. Harkness said the manufacturing charges totalled 3.26 per cent., which would stand comparison with neighboring companies. Disposal costs and depreciation amounted to 1.51 per cent., making the total charges 4.77; which was a very satisfactory .position. Interest charges were £402, against £270 last year. This was due to the fact that the produce was hung up in the stores for some time, resulting in the company having to pay interest to shareholders. Marine insurance cost £205, the charges in this direction being fairly high, and he thought the companies would have to consider the question of co-operating in the future with a view to effecting their own insurance. In the matter of cartage the motor lorry had saved the company a lot of money. Mr. Harkness proceeded to deal with the company’s activities in regard to other concerns, including the Taranaki Producers’ Freezing Company, the New Zealand Producers’ Marketing Association, and the 'Egmont Box Company. In reply to an interjection, he expressed the opinion that the Box Company had done good work; factories were getting crates and boxes cheaper and the Box Company had served a useful purpose. He concluded by moving the adoption of the report and balance-sheet. The motion for the adoption of the report and balance-sheet was seconded by Mr. W. G. Kendrick. The chairman invited shareholders to put any questions concerning the company’s operations, but there was no response and the report and balance-sheet were adopted without discussions. CO-OPERATIVE MARKETING: In reply to a shareholder, who asked for particulars of the marketing scheme, the chairman said the company were getting the beat terms through the C.W.S. The main feature about the scheme was that it resulted, in the company receiving exactly what the market offered. He did not contend that the scheme was perfect, but as it gained ground and more produce was put through th-e C.W.S. the greater would be the benefits accruing. The feeling among the directors in Wellington was that if they could increase their total consignments this year by another three or four thousand tons it would give them a better footing. Tariki was the only company which supported the C.W.S. last year, hut two other factorise in the province were putting

their outputs through this channel, in the coming season. Previously the most support had come from the South Island. THE DIRECTORATE. Votes of appreciation were passed to the retiring directors, Messrs. A. E. Lawrence (one of the original directors) and A. E. Cowley, who were not seeking re-election. Vacancies on the directorate were filled as follows: Tariki, Messrs. G. R. Nuttall (retiring), G. Knowles, and H. Knowles; Rugby Road, Mr. A. J. Simmons. Mr. G. Pullen was re-elected auditor. QUESTION OF FEES. A proposal was made by Mr. J. Hucker that the directors’ fees be reduced from 15/- to 10/- per meeting, the mover backing up his proposal by pointing out that affairs in uhe industry were not now as bright as when the existing sum was fixed. The motion was seconded by Mr. Butler. Mr. Dendrick opposed the motion, on the grounds that the directors had a good deal of business to transact, and he remarked that they had other matters to attend to besides the attendance at meetings. Mr. A. West favored holding the meetings during the day, as he considered that a man was not in a position to look after the affairs of the company’s property at night after having done a day’s work. “Personally I don’t think you have paid your directors enough,” said the chairman. The motion was lost on a show of hands. The chairman’s honorarium was increased from £25 to £5O. The mover (Mr. Burns) said that at present the chairman was not half well enough paid, and the opinion was supported by other speakers. OUTSIDE COMPETITION. A question was put by Mr. Hucker as to whether the directors had considered making any offer for the cream that was now going away from the district to the proprietary concerns. “I think they are cutting in a good bit,” he said, “and if the company could see their way to take the cream at anything like a reasonable price it would be as well to consider it.” The chairman replied that the directors had thought about the matter at practically every meeting they had had, but the difficulty was that the people who were dealing with the proprietary concerns were not shareholders, and if the company took cream from them it would leave an avenue for others to come in as non-shareholders. It was difficult to compete with the proprietary concerns as they made certain allowances "for a start in respect to shares and cans. Mr.’ Hucker: “It is a question that will have to be gone into.” Mr. A. E. Cowley: “I don’t thirtfc so; they are coming back fast to the companies in other places. It will right itself.” ■Mr. Kendrick said that if the shareholders could organise better and be more co-operative some of the difficulties would be overcome. As a Rugby Road supplier he pointed out that at present the company was split' up into two sections as regards the selection of directors, Rugby Road and' Tariki having separate conditions. He thought that this should be altered, and that the selection of directors should be taken In one vote. The discussion ended without any motion being tabled. GENERAL. On the motion of the chairman, a hearty vote of thanks was passed to the secretary (Mr. Messenger), the manager (Mr. McElroy) and staff. The meeting also passed a vote of thanks to the "chairman and directors. In regard to the increase in share capital, which was recently adopted by shareholders, the chairman said»the directors did not propose to allot all the shares, but intended to issue 1000, which would be sufficient to cover the money required. At a subsequent meeting of directors Mr. Harkness was reappointed chairman.