THE DAIRY INDUSTRY.

Taranaki Daily News, 24 August 1922, Page 8

THE DAIRY INDUSTRY.

PIHAMA COMPANY. % THE ANNUAL MEETING. The twenty-fifth annual meeting of the above company took place at Pihama on Saturday last, Mr. John Pettigrew, chairman of directors, presiding | over a large attendance of shareholders. Statistics (last year’s figures being i given in parentheses).—Butter made; 1252,653 (287,971); over-run, 18.65 (18.39); lb milk to lb butter, 3Q.8 (20.4); average test, 4.03 (4.1); milk received for cheese making, 10,865,520 (6,690,888) ; butter-fat, 422,356.8 (247.641.3); cheese made. 1.134,484 ( 694,293); ]b milk to lb cheese, 9.5 (9.6); lb cheese tc lb butterfat 2.68 (2.73); average test, 3.88 (3.7). The chairman, in moving the adoption of rhe report and balance sheet, said it was gratifying to report a big increase in the milk supply, which amounted to thf'tee and a half million .lb, representing '144,423 lb of butter-fat. At the lust balance the estimated pay-out for 1920-21 was 2s 3Ad per lb, but as the cheese realised more than the estimate another Ad was paid out. The directors were of the opinion that this payment was a mistake, as it would have been ■Abetter finance to have placed this towards building up a reserve fund. He suggested that in future any fractions be paid into a reserve. Butter prices were so good in the spring that butter making was continued till October 20. However, the hold-up of ships at Home and the markets falling resulted in the butter bringing low prices. During the past season Is 3d per lb was paid for July, August and September, and lOd for the remainder of the year. A further payment of 2d per lb over the period October to June would be made that day. The cheese on hand at June 30 had been estimated at 6d per lb, but since that date advice had been received that a further balance of approximately £2200 would be available, and this should provide another 2d per lb over the October to June period, and bring the pay-out for the season up to Is 3d for July to September and Is 2d for October to June. A considerable drop was shown in this year’s costs, crates and other requisite' being cheaper. The new cartage contract showed a big drop. After some discussiop the report and balance sheet were adopted. It was resolved, to pay 5 per cent, interest on all paid up capital.

BUSH-COMMITTEE REPORT. The above committee reported that on the recommendation of the comffiittee the director? last year decided to replant the depleted areas of the company’s bush section, as the timber was cleared off During the yea rthe committee had planted a further area, and to date 10 acres were planted with 24.000 trees of various kinds. The cost, including fencing was roughly, £25 per acre. It was in the mind of the board to annually extend this work until half of the land was replanted. Experience had taught them the best varieties of trees to set. and coupled with lower costs, the whole work should not cost more than £l5O per year. The committee had two years’ wood supply cut to ensure seasoned timber. An area of 12 acres of very rough bush land had been felled and grassed during the year. All available wood (300 cords of rata and firewood) was now cut. Mr. J. McHardy said a word of appreciation was due to the committee for their work on the hush section. He moved, a vote of thanks to its members. —Carried. HERD TESTING. Mr. R. Lambie, sent., emphasised the need for general testing of herds. It was a thing that would put money into their pockets. All shoulJ realise the serious loss of keeping cows which do not pay. Very great benefits accrued from systematic testing, and he moved that it be a strong recommendation to directors to make to have all herds tested. The chairman said the testing as?.>ciation was still in. existence, and he hoped that in future more would avail themselves of the chance to test their herds. It was pointed out that the cost of testing each cow was 2s, and also that there were between 2500 and 3000 cows being milked by shareholders of the company. f Mr. Frank Julian, in supporting the motion, said the average butter-fat production per cow in Taranaki (180 lb per annum) was ridiculously low, and proved that hundreds of cows were being kept which did not pay for their feed. To demonstrate the value of herd testing he instanced a case where, by culling as a reSult of the knowledge gained bv testing, a herd average, excluding heifers, had in three years, been increased from just over 180 J,b to 312 lb per cow. The present system of testing was a good one. and hf regretted that onl.r 11 ffTi’ppliers had taken advantage of it. The system had proved very necessary to detect the robber cows. MARKETING PRODUCE. Mr. Lambie said if they wanted a bit of a gamble they could sell sometimes and consign sometimes, but he favored a settled policy of consignment through some reputable firm handling produce. He thought such a policy would be the best in the end. Mr. S. Campbell said if the directors had' sold two years ago it Would have been to the company’s Mr. Julian pointed out t|iat it was at a general meeting of shareholders that this offer was turned down. The loss in not selling on that occasion was £12,700. He did not thjnk directors should be bound to any fixed policy with regard to the disposal of produce. They had good agents at Home last season, and then a loss of over £lOOO was made on one shipment. The whole thing was more or less a gamble. Mr. T. S. Tosland said the consignment policy probably would win out in the end, but he would like some direction from the meeting for future guidance. Messrs. McHardy and Campbell were in favor of giving the directors a free hand in the disposal of produce. In replv to Mr. D. Holmes, junr., the chairman* said a conference was being arranged between neighboring companies with/the idea of obtaining the services of a" dairy instructor. The election of directors for the comin* year returned the old board Messrs. JT. Pettigrew. E. .S. Forsyth. J. D. Conartjlen. A. Petty, J. F. Shepherd, J. S. , Tosland and. F. r Julian. At a subsequent, meeting ’of dWCtDrs; Mr. J. Pettigrew was elected chairman, j—Times.

THE T. L. JOLL COMPANY. ANNUAL MEETING. The annual meeting of the T. J. Joll Co-op. Dairy Company was held at Kapuni yesterday. Mr. J. B. Murdock presided over a large gathering of shareholders. In moving the adoption of the report (already published), the chairman said that the balance-sheet compared very satisfactorily with other factories, but it showed a drop of lOd from last year’s pay-out. This was a bad thing fojr any industry, and particularly the dairy one, for the effect was reflected In so mans- different ways. The past season had been one of the best in his experience; grass had been plentiful .and production had increased to the amount of 63,000,000 lbs? of milk, while the quality .was of the highest. A consistent season was better than one having a. plentiful rainfall at one time and dry at anothrt-. This had been, demonstrated by the yield of the seasdfi just ended- . The prospects at the beginning had been quite good, but nq one anticipated such conditions as were revealed. The company haff had no reliable information from Home markets, that was to say. information from some source that had authoritative backing. Six years ago the Government had a man at Home for this. ' purpose. and he believed’ that it was their intention to re-establish this means of getting dependable Information. Dairy, companies required this more, than anything else.

AU produce in store had bees and the company would be able to start the’ new season with a clear market, and would not be handicapped with produce still in store. The price for butter fluctuated a great deal, from 180 s down to 1225, then going up to 140 s, while cheese, beginning at 100 s,. fell to 70s, and then rose to 90s. The greatest fluctuation for the years prior to the Imperial commandeer had been fro'm s 3s to 4s. The indications for the present year were better, and the company would consign its output. Up to th’e present time butter had "been sold at Is Rd per lb., and 'the directors had been negotiating for a further sale of butter. Factories having dual plants were often at a loss to know which would be the better, butter or cheese. During the history of the company there had been only one year when It would have paid to make butter. Many companies who had made butter had regretted the fact,- and were not in a very happy position now. THE MARKETING QUESTION. A better scheme w<is wanted for the marketing of produce. "Dairy pool" was not quite a correct name for the movement so much discussed lately. Prist history had shown that some different methdd 1 was necessary in placing produce direct to the consumer. It should be the aim in New Zealand to deliver their produce in England, so that wholesalers and others could buy their produce as needed. This, of coarse. Introduced the question of finance. In the case of a. boat with a full complement of butter on board; it required £3OOO to finance the shipment. It would require a capital' of two millions to adequately finance n shipping project. This would- take time. hut. a more speedy method of increasing the factorj- cheque was to produce as much as possible. The farmer who had the best stock and the best land usually camo off best. The mote milk handled made the manufacturing costa lower, and the same applied to quality. Last yeaY it cost 4.39 d to market a pound of produce, practically double what it was ten years ago, and he hoped they would soon get back to this basis. Mr. Murdock then went nn to deal With the balance-sheet, pointing out that most charges showed a decline. Trade costs had also come down. Last year the directors’ honorariums had been increased, but otherwise costs had been about the same as last year. The biggest item was. shinning, hut at the present t’me they were endeavoring to enter into a somewhat different scheme of charges, regarding shipping. The directors also hoped to get some material reductions in other items, such as factory supplies, etc;, which were gradually coming down. .Toll's factory, he Was pleased to say. had returned a. pay-out better than any other in South Taranaki. Mr. A. C. Johnstone seconded the motion. Speaking from experience, a supplier stated that in his opinion the carting bill was too high. It worked out at about £1 per ton of cheese carted. The chairman explained that this was hardly correct, as taking into consideration back loads of ftfctorj’ supplies, it only came to Ils 3d per ton. Questioned regarding the' Egmont Box Company, the chainman stated that last year the factory paid £Bl7 towards the Box Company, while this year the charge was £1916. This was due to pressure exerted by the bank, requesting the re-payment of £15,000. The time was not opportune, but as the bank gave no consideration. a call - was made upon shareholders. This was. however, not a recurring charge, and he looked for a yearly reduction in the future. No proprietary concm could supply the changing demand owing to dual factories altering their make at a moment’s notice. The Box Company had £58.-' DOO worth of stock in their yards, all paid for. There would be no increase of capital demanded through the increased production of iast year, as it was recognised that one good year could not be- taken as a. fair basis.

Mr. Murdbck also stated that wages had been reduced, but. a further reduction was contemplated. A lorry had been sold, thus lowering the carrying costs. The report and balance-sheet were adopted. OFFICERS ELECTED. The retiring directors, Messrs. Johnson, Kissick and Guy, together with Mr. Walsh, were nominated for three vacancies on the directorate, and Messrs. Johnson, Walsh and Guv were elected. The chairman moved a vote of thanks to Str; Kissick for the good work done during three years on the directorate, to which Mr. Kissick suitably replied. Mr. H. A. Lannon was re-elected auditor at the same remuneration, Directors' honorariums were fixed, after some discussion, at £1 is. the same as last year. A(r. Murdock moved that the company's store be carried on as previously, explaining in support, that only about fourteen or fifteen items of goods in everyday use were now stocked. The profit amounted to £229 Bs, and the stock in hand was worth £688, Carried. A vote of thanks was accorded the directors by acclamation. ' FEEDING OF STOCK. ‘ M/. Murdock asked suppliers for expressions concerning the . feeding of stock. Better feeding, he emphasised, meant better results. Turnips often affected the article produced, and this he attributed to the method of feeding, and advocated the more extensive growth of lucerne. There could be no question about its' adaptability to the soil of South Taranaki, and it was the best autumn fodder he knew. Mr. Richards said he had had long experience with lucerne in Australia and elsewhere. He had a ten-acre paddock., and he recommended feeding on lucerne alone. Growth Was maintained up to the end of March, and when cut it made splendid ensilage. ■ He could not utppeal too strongly to suppliers, to grow lucerne and cut out turnips. Another speaker said thatN as a leaseholder he had come to the conclusion that men with comparatively short leases could not afford to grow lucerne, as the ground usually required considerable preparation. In his own case he had found that feeding on soft turnips for an hour directly after milking each morning had given beneficial results. Turnips, moreover, were an easy crop to grow, and a lessee had the advantage of being able to utilise the ground for other crops in the spring. Mr. Richards replied that lucerne was much easier to establish, than most people’ supposed. On his patch, the lucerne was already far ahead of the grass, and not only grew quicker, but gave greater returns. He expected to take two cuts off before the new year. Mr. Grinley attributed the flavor of turnips, so often complained about in milk, to insanitary milking -machines. He also had had much success with turnips, and he regarded lucerne as a crop too expensive for the average farmer. PART SKIM CHEESE. Mr. Chabman introduced the subject of pdrt swim cheese, being of the opinion that its . manufacture would have a detrimental effect I

upon the general value of New Zealand’s produce at Home. He also quoted at some length extracts from speeches at various dairy conferences. In reply, the chairman said that In Holland cheese was graded according to its butter-fat content, an entirely different scheme to that in vogue in New Zealand. He suggested that part ski.m cheese be made on a distinct pattern, because stencilled brands could be easily obliterated. Cheese at present had a good name, and the manufacture of the part skim article, if exploited on existing markets, should not affect their high-class reputation. He hoped the department would make definite reports upon the matter.