THE DAIRY INDUSTRY.

Taranaki Daily News, 3 August 1922, Page 7

THE DAIRY INDUSTRY.

7HE RAHOTU COMPANY. FIFTEENTH ANNUAL MEETING. • i The fifteenth annual meeting of the Rahotu Dairy Company was held yesterday, when Mr. W. C. Green presided over an attendance of about 40 shareholders. In moving the adoption of the report (already published) the chairman congrat’iiated shareholders on rhe good work that had been done in the factory during the year. F-jr the past three or four years the work had been uniformly good, but during the last year it had been exceptionally so. During the year the directors had advanced 12 per pound butter-fat, and there remained to the credit of the profit and loss account £5371 19s 9d» out of which it was proposed to pay a further 3d over the whole year, absorbing £5238 13s, and leaving £133 6s 9d to be dealt with. No doubt, be said, some felt disappointed that a sale had not been made at the good prices offering at the beginning of the season. There were fairly good prices offering, ana nad they been fortunate enough to have accepted them they would have been able to pay out a good deal better, and the directors would have felt better pleased. He explained the negotiations, stating that the market opened early in July at Ud and gradually increased, and the directws, thinking the price was not likely to go much higher, called a meeting to discuss the question. That day a gale was bl owing and interrupted the telephone service. They wired the two firms with whom they were on treaty, viz., Weddell and Mills, and about 2 p.m. received a telephonic message that someone had rung up offering 11 5-Bd, but owing to the gale the name could not be obtained. Later a telegram was received from Mills offering 11 5-Bd. They therefore thought the ’phone message had come from Weddels, and decided to offer them half the output at 11 5-Bd, wiring to that effect. Next morning they received a reply that the offer had not come from that firm, the telegram having been sent by Mills to confirm the ’phone message. When they got in touch with Mills they received word that the price had been withdrawn the previous night. They therefore lost the chance of selling half the output. In any case they would have held the other half for a better offer. Later the market continued to go down untU towards the end of the season the directors >cided to accept a price for the balance of the output, and it was fortunate they did, as they sold at Bd, and the cheese did not. net 7%d when it got on the London market. Moreover, the sale enabled them to pay out -their surpluses thatiday, which they would not have been able iodo for some months had they not sold.

Referring to the balance-sheet, he said that the increased supply had necessitated the installation of additional plant and to improve the interior of the factory, including the provision of a new tiled whey scoup, etc. It looked as if something additional would also be required this year. Referring to the White lorry, he said that some of the shareholders had the idea that this was not paying, but he could assure them that it was. As shown in the balance-sheet, there was a surplus of £389. In three years £1212 had been written off, leaving the lorry standing on the books at £348. When they went in for the lorry it was never anticipated that the lorry would show a profit, as it was bought with the idea of keeping down the freights. The surplus would enable an additional %d per pound butter-fat to be paid out, but it was considered advisable to place it against the motor lorry account. The directors did not consider the Box Company shares a very good asset, and had been endeavoring to build up a reserve, which now stood at £lB7B. In.’ concluding, he congratulated the manager and staff on the way in which the work had been done. Mr. W. H. Hopkins seconded.

THE DISCUSSION. Mr. G. Gibson said that comparing their balance-sheet with those of other companies they must congratulate themselves on paving done very well, though perhaps not as well as they might have done under the circumstances. He considered the outlook for the present season was very uncertain. They had got. a good price for the present month’s output ofl butter, viz., is 9d, but there was no life in the market at present, and he did not think the prospecU Justified them in expecting to receive more than the results obtained last season. Mr. A. F. Chapman, chairman of the motor lorry committee, endorsed the remarks of pr .ious speakers. The success had been the more remarkable in view of the fact that the hack carting had decreased by 200 tons, though the cartage of produce had increased. The lorry had been recently overhauled, and should cost little during the coming year. He paid a tribute to the work of the driver, who was very careful. Mr. Morgan considered that the wagon should do more work. The chairman pointed out that there was difficulty in obtaining back loads, and lie showed savings in other directions. Mr. C. W. Field pointed out that though the average grade of whey butter was the same over the last three years, that of creamery butter showed a decline, as also did that of cheese, though only slightly. This was a matter that wanted looking into. It would be much more satisfactory if they could show a slight increase instead. He considered that wages showed too large an increase. As prices were going down it was only reasonable to suppose that wages should go down. Fuel also showed an increase per ton of output, and this despite the increased output, and he urged economy in this direction. The• secretary pointed out that the year, as far as the official grade was concerned, closed on March 31, and consequently last winter’s butter was included, and, as they knew, the imilk last winter was not too good. The chairman said the decrease in the grade of cheese was accounted for by the fact that the Government had. stiffened up the grading of cheese after the control ceased, and this he favored. He strongly favored milk Inspection. This would do away largely with the manufacture of second grade produce. He recognised the necessity for economy in all directions, including that of wages. Mr. Howland asked whether it would be possible for the factory to employ a milk inspector. The chairman said that the directors would consider the matter, as they had had communication from the Pihauna Dairy Company on the subject. Mr. Howland also touched on the question of herd testing. The secretary stated that owing to the restriction of the subsidy the department were unable to supply men for herd testing. The chairman and other suppliers remarked that the company had a cow testing association some few years ago, but it fell through owing to lack of support. The chairman said that he would like to see an association started again if they could get some one to take it up. In reply-to Mr. Fisher, the chairman stated that the estimate fo. putting in a waterrace ha been £l3OO. This would save about one-third of the fuel bill. He would favor putting in the water supply if the money could be found. Mr. Gibson said there was a possibility of hydro-electric power being obtained from Opunake. In reply to Mr. Dawson, the secretary stated that the overrun was nearly 20 per cent. Mr. T. Willcox, one of the directors when the lorry was purchased, considered that the lorry was one of the best investments the factory had ever made. It had obviated unnecessary delays in cartage, and this saved toss by shrinkage. He considered, however, that the company should give the same con- , cessions to non-supplying shareholders as 1 were given to suppliers in connection with cartage. He congratulated the directors on the results achieved during the past year, which had been one of great difficulty owing to marketing conditions, high freights, etc. The motion was carried. OTHER BUSINESS. For the two vacancies on the directorate, mused by the retirement of Messrs. A. F. Chapman and V. S. Tyrell, there were four nominations, and tho election resulted: V. Tyrell 104. C. W. Field 73 (elected), A. FChapman 70, G. D. Dawson 41. _ The chainmail expressed regret at the ao<«a«« of Mr. ChajMMAa from Uxe

considering that he had been one of the best members on the directorate. Mr. Chapman was recorded a hearty vote of thanks for his services as director. The directors’ honorarium was fixed at the same as last year.