STRATFORD FARMERS’ CO-OP.

Taranaki Daily News, 25 July 1922, Page 8

STRATFORD FARMERS’ CO-OP.

THE ANNUAL MEETING. THE YEAR’S OPERATIONS. The annual meeting of the Stratford Farmers’ Co-operative Association. Ltd. was held at Stratford yesterday, the chairman, Mr. Frank Ranford, presiding over an attendance of nearly 200 shareholders. In moving the adoption of the annual report and balance-sheet (already published) the chairman said it would be remembered in the last report the opinion was expressed that when the final payments were made the total pay-out for butter would be somewhere in the vicinity of 2s 7d per lb. of blitter-fat. He was pleased to be able to state that their hopes were more than realised, the final payments for cheese bringing the average for the season to 2s 7%d per lb. He referred to the remarkable production of the past “You will find.” continued th§ chairman,” “that this year we made, in round figures, 23 tons of whey butter, against 10 tons last year. We made 422 tons of creamery butter, as against 429 last year, showing a slight decrease, which is accounted for by the fact that we turned over to cheese from butter at Stratford, Toko, Huinga and Douglas as from October 1 to the end of March. This accounts for the enormous increase in cheese pro<Buction, which shows an increase of 468 tons, or almost double the previous season's make, the figures for this year being 991 tons of cheese, as compared with 523 tons last year. This year, for butter-fat and cheese combined, we dealt with 37,812.1461b5. of milk, against 30,355.6435b5. last year, an increase of over 7,000,0001b5., while the amount of cream handled by the company also more than trebled.

"In regard to the quality of the butter and cheese manufactured, I consider we have every reason to congratulate ourselves. The quality has been fairly good throughout, and while we are not top of the grading list, both our butter and cheese have maintained the good name that our produce has always possessed. This, fit view of the fact that we have no pasteurising plants installed nt our cheese factories, is very satisfactory indeed. I maintain that the position in regard to the quality of the produce as revealed by the facts and figures is quite a good one. The quality has been favorably commented upon by the merchants handling it.

"From time to time I and my co-directors have been approached by shareholders and unbraided for making such low advances. In this connection I would like to ’point out to shareholders that the directors are anxious to pay out the greatest amount possible with due regard to the margin of safety. The chopping and changing about that occurred owing to over-anxiety on the part of suppliers to do the best for themselves, gave rise to very peculiar and difficult positions. When the advances were cut down to 8d and lOd per lb. we were faced with the position of having paid out- 2s and Is «d for some of our earlier supply, and we were not anxious to find ourselves in the unenviable position of requiring a rebate from sunpliers. I am pleased to he able to record the fact that since taking stock prices for cheese have advanced. and the tone of the market has been much healthier. I have pleasure in announce ing that a further 2d per lb. will be paid out to cheese suppliers next month. We have kept a close watch on the position in regard tp the relative values of white and colored cheese, and some time back we instructed the manager to make all white cheese. Events have justified our action in this \ respect. We sold 2315 crates of cheese in store at Rd per lb. nn Saturday last. This is more than the present market price warrants. Right at the

commencement of the season wp were offered 2s per lb. for saltless butter for a portion of our output. Contrary to what has been rumored, we were not offered this price for the whole of -the output, but quite frankly I am prepared to admit that we did not appreciate what we were turning down when we refused 2s for a quantity of saltless butter.” After referring to the changing over again from cheese to butter on April 1 and the reasons for so doing, the chairman said a further pay-out of 3*4d would be made next month In respect to butter. This would bring the average pay-out for the season up to 14% <3 per lb. Referring to the proposed butter pool, the chairman said the directors felt that while present marketing conditions were far from satisfactory, it would be most unwise and very bad business to buy a ‘(pig in a poke by agreeing to take up shares in a company about which they knew next to nothing. The South Island idea of fortnightly or monthly auction sales did not appeal *to them at all, as they were distinctly of opinion that they would be jumping "out of the frying pan Into the fire.”

The chainman added that the repairs and renewals bill had been yery heavy this year, totalling over £2OOO. He proceeded: "I cannot speak too highly of the work done by Hie manager and the secretary. In Mr. McElroy we have a manager who does his work in a quiet, unobstrusive but effective manner, and our secretary is second to none.” In conclusion the chairman said the company was in an absolutely sound financial position owing to the sane, sound policy of the direcThe motion was seconded by Mr. W. J. Chainey.

THE DISCUSSION. Mr. H. A. Hunt said there were several things In the report and balance-sheet that needed discussion. The salaries paid to the employees had not been reduced at all, in spire of the fact that thev were getting back to pre-war standards. All things considered the manager cost the company about £9OO per annum, which was more than the company could afford to pay. Renewals had cost £2251 in the past year, and he thought it was time the directors showed some economy. The chairman deserved the credit for selling produce at good prices and censure for selling at poorer ptices than those received by other factories. The chairman replied that they had carried out the sales as any business men would, and only a prophet could have foreseen the fluctuations, of the market. The directors had already decided to reduce the wages of the staff for the conning year. An award would soon be in operation for factory employees, and then they would have to pay award wages. Mr. J. B. Hine asked wliat vyas Mr. Ellison’s position in England. Mr. Ranford said he was glad the matter of Mr. Ellison’s, position had been brought up. He was receiving £750 from the N.D.A. in London and £750 from the C.W.S., and no man could serve two masters. His position was being looked into, and he would probably be bound down to one position under the N.D.A. Mr. M. Urquhart said he had heard from a director that the cheese men had sold the butter over the heads of the butter men. This was denied by the directors. Mr. Howarth said there was a recommendation to the directors to adhere to a consinging policy, and in diverting from this policy the directors had laid themselves open to condemnation. He thought the meeting should adopt a consigning policy and cut out the board of directors except for the chairman and secretary. Mr. Milne said they had started to economise. and he thought the directors’ pay should he cut down. A board of seven directors, he thought, would ho quire sufficient. They were economising in employees’ wages and he thought economy should begin at the top. In answer to Mr. Hine the chairman said they had received no offer for cheese during the year, but 1000 crates had been offered by the directors at lOd per lb. The motion was adopted. ELECTION OF OFFICERS. Messrs. F. Ranford. W. H. Were and C. A. Lehmann, the retiring directors, were returned the voting being as follows: C. A. Lehmann 129, F. Ranford 117, W.' H. Were 106, J. B. Hine 57, H. A. Hunt 31, and H. Johnson 24. Mr. T. Harry Penn was re-appointed auditor. GENERAL Mr Milne moved that the chainman’s honorarium be reduced from £lOO to £75 per annum, the directors’ fees for meetings from £1 to i&li the mileage to l s .P?. r mile ? n ®

way. The motion was carried by a fair maVotes of thanks were accorded to the directors and the staff of the flictory. Mr. Ranford said the factories would be ro-opening on August 1.