THE DAIRY INDUSTRY.

Taranaki Daily News, 2 August 1922, Page 8

THE DAIRY INDUSTRY.

THE ROYAL OAK COMPANY. THE ANNUAL MEETING. The fourth annual meeting of the • Royal Oak Dairy Company,, Ltd. was held at the Omata hall last night, when Mr. E.’ R. Bayly (chairman of* directors) presided over an attendance of about thirty. The annual report stated: “Your directors again note the substantial increase in the supply of milk to the factory over .’previous seasons. Owing to the sudden-fluctuations in values of the Horae (markets, prices obtained have been very irregular. After writing, off the sum of £321 Is 9d by way of depreciation of plant and buildings, there remains a credit balance in the profit and. loss account of £l2BB 2s Bd. Tour directors propose to make a further payment of Id pet lb- .of butter-fax supplied during the year. ■ When this payment is made suppliers will have -received 13.51 d per lb. of butter-fat supplied. Your directors are unable to make a statement as regards the final pay-out until- the whole of the account sales are received. .During the year the question, of accommodation for employees was fully discussed, and \vour directors decided to build a (manager’s -residence. To provide for this expenditure it was decided to deduct one- farthing per lb. of but-ter-fat supplied. Your directors are of the opinion thAl Ihe final results will favorably compare with any other consigning cheese factory in this district.” The statistics for the season are as follows, the figures for the previous season being given in parentheses: Number of suppliers, 45. (44) ; Milk received. 4.819,9061b5. (4,306,191 lbs.) ; butter-fat, 206,5181b5. (180,8241b5.) cheese made, 527,9G31b5. (467,4821b5.) ; ibs.milk per lb. of cheese. S.Ollbs. (9.211b5.) ; lbs. cheese per lb. of butter-fat, 2.721b5. (2.681b5.) ; average test, 4.28 (4.16) ; average price per lb. butter-fat, 13.51 d advance (27d) ; average grade cheese, 91.70 (90.41) ; whey butter made. J1,8261b5. (13,5201b5.). CHAIRMAN’S ADDRESS. In moving the adoption of the Annual report and balance-sheet the chairman said that 2s. 3d had been paid out all told over the sea r son, which he considered was very satisfactory. Cheese-making had started on August 21, 1921, and ended on l9, 1922. He thanked shareholders for their increased supply, the past season having been the best in the history of the'company. Shareholders had tested and culled their cows and had gone in for top dressing, consequently they were better farmers to-day. During the past season 288 tons of cheese and d tons of butter had been imade, which was an increase on the previous year of 38 tons. Unfortunately he could not-congratulate shareholders on the price of butter-fat, but that was a thing outsjde their control. The company had been asked to put their output under a firm offer of lid per lb., but this was declined.

The amount of cheese shipped overseas amounted to 3181 crates, the last lot of 379 crates having just been sent away. It was hoped to catch the high markets at Home, and there was, he thought, every prospect of this, though he would not like to express an idea as to the amount of the payments. In paying out the extra penny n pound this meant absorbing £ RflO out of the surplus of £l2OO. He thought he could congratulate the company nn a. sound financial position. During the year eighteen new £lO shares had been taken up in the Taranaki Producers’ Freezing Works and 394 new shares were taken In the Egmont Box Company. The decrease in the reserve had been caused by putting money to these special purposes, leaving a reserve at present of £2OO. The chairman explained the working account, saying that the wages wepe

practically the same as for the previous Season, whilst the output had been increased. The cost of cheese crates and boxes had increased by £95 and fuel and benzine by £63. One pleasing feature was that. £240 less Interest was paid last year, due to the cheese getting away better. Of the 3181 crates of cheese sent away, all this was first grade quality, a fact which reflected great credit on the manager and the staff. The grade last year was 91.70, and placed the company seventh on the list out of 60 odd factories Tf suppliers sent in a little better milk the grade could be improved even more. A letter was read from Mr. W.‘ M. Singleton* (Director of the Dairy Division) congratulating the noinpan.v on the increase in turnover. The average test and the yield had last, year been higher than previously. The chairman regretted he could not congratulate shareholders on the quality of their whey butter, for of 142 boxes exported there were ">3 firsts and 89 seconds. The great number of seconds was. undoubtedly due to the plant, and It was a question whether it would not be wise to put in a better plant, as the company had outgrown the present one. The estimated cost of an improved plant was statcd*as being in the vicinity of £5OO.

The prospects for the coming season were extremely doubtful, the latest London quotations being: white cheese 88s to 90s, and colore<L. cheese 84s to 86s. The agents could not give any advice, but did not think the state of the’ market warranted the company turning over to butter. A question to decide was whether dividends should be paid on share capital : practically all the shareholders had paid up. Regarding herd-testing, there was the question as to whether it would be advisable to form an association. The-speaker concluded by expressing thanks to his fellowdirectors, and appealed for all shareholders to remain loyal to the company. Mr. J. W. Pentelon seconded. Mr. J. Andrews expressed himself as dis-, appointed with the year’s balance sheet. He could assure them it was a severe test on'-his loyalty to have to have to accept 1/I’4 per lb and have to wait eight months for the balance, whilst a neighboring butter factory was paying out 1/4 and 1/5 per lb.

Mr. J. A. Kurth, one of the directors, thought, the company could congratulate itself on the year’s working. The company were fortunate in having an excellent manager and an excellent staff, who were justifiably proud of the grade they had built up, and he thought suppliers should take the same interest. Whilst the production last year had been greater, the total expenses were about, £5OO less than in the previous year. The motion was carried. OTHER BUSINESS. Messrs J. A. . Kurth and S. Vickers, the retiring directors, were re-elected, these being the only nominations. Messrs J. W. Pentelon and J. Andrew l ’ were nominated to fill the extraordinary vacancy caused by the resignation of Mr. E. J. Sanger, Mr. Pentelon being elected. Mr. J. S. S. Medley was re-elected auditor. It was resolved not to pay dividends on last year’s paid-up capital. It was made a recommendation to the directors that they consider the advisability of buying back “dry’’ shares at a price to he left to the directors’ discretion. It was resolved that two directors retire the first year, two the second year, and three the third year. A hearty vote of thanks was passed to the manager and staff for their excellent work during the year. A vote of thanks was accorded the secretary (Mr, 1 A. J. Tunbridge), his services during the past year being very favorably commented The chairman voluntarily agreed to accept an honorarium of £3O instead of £5O, as paid the previous year, and a resolution to th'g effect, was carried. The directors were granted 10s for each meeting attended during the past year, and it was resolved that the same amount be paid for the coming year. It was resolved that the factory take the necessary steps to have a cow-testing association formed in the district.