MANGOREI DAIRY COMPANY.

Taranaki Daily News, 25 August 1922, Page 7

MANGOREI DAIRY COMPANY.

HAST YEAR’S results. THE ANNUAL MEETING. The twenty-seventh annual meeting of the Mangorei Co-operative Dairy Company, Ltd., was held at Egvnont Village yesterday in the presence, of a. large number of shareholders, the chairman of directors, Mr. A. Morton, occupying the chair. The annual report was as under: The quantities of milk and cream, and the figures in connection therewith are set out hereunder, the corresponding figures for the previous year being shown in parentheses: Milk received, 13,44-3 ,«251bs. (11,487,742) ; butter-fat contents, 526.5991b5. (448,920) ; average test of milk, 3.91 per cent, (3.90 per cent.) ; 'cream received, 538.6221b5. (366,474) ; butter-fat contents, 19r,5211b5. .(132,313) ; average test of cream, 35.5'5 per cent. (36.10 per cent.) ; butter made, 857,7731b5. (€88,167) ; overrTiip, 19.44 per-cent.* (18.39 per cent:).: lbs. milk to each- lb. butter. 21.951b5. (22.01). During the year £44,149 15s 7d has been paid out to suppliers. After writing off - £383 10s for depreciation, there remains available for further payments, to suppliers the sum of £1643 Ils lOd. Tliis will 'make the average payments for the. year equal to 15.3 d per lb. of butter-fat. The balance-sheet showed that in the trading account £44,149 15s 7d had been paid for- mhk, salaries and wages had accounted for £2048 13s 4d, and working expenses £4498 9s Id. leaving a balance from sales of £3570 Ils Id to be carried into the profit and loss account. This account showed management expenses £2576 5s Bd. export charges £531 3s 6d. depreciation £383 10s. . and a balance available for further payment to suppliers of £1643 Ils fOd. On the other side of the ledger a balance from 1921 and rebate Of storage charges for the year .1920-1921 stood at £11.413 6s sd, from which must be taken £11,401 12s 2d. further payments to suppliers. Dividends totalled £ll7. balance from trading account £3570 Ils Id, and refund cost of running creameries and cream collection £ 1435 5s Sd. CHAIRMAN’S ADDRESS. The adoption of the report, and balance-sheet was moved hr the chairman. The past season and future prospects were dealt with as reported elsewhere. Tn connection with the Increased output of their factory, Mr. Morton went on to point out that- with the exception of boxes, parchment, and one or two other necessaries, the increase had not involved an increased expenditure, and their expenses on the whole had been very little higher than 12 months ago. when they had a much lesser output. The figures showed that the actual working expenses and salaries in connection with the manufacture, which, strictly speaking, were the true manufacturing costs, were now reduced to 2d per lb., and taking into account management expenses and transport and other charges up to f.0.b., were down to 2.4 d per lb. of blitter. Last year they were 3%d per lb. Tn making the comparison, he wished to draw attention to the fact that he had taken Into account .moneys recovered from suppliers at the different creameries, which had been brought back into profit and loss account, but this waj? the lowest figure at which they had produced butter for a great many years. He did not anticipate any further reduction in wages and salaries, but it was possible that there would be a further reduction In running costs and other requirements. Coupling this with improved prospects in regard to .marketing conditions, dairying for the coming season was fairly promising. With regard to the costs of running the creameries. Mr. Morton said that they would recollect that when the matter was discussed by shareholders it had been decided that each creamery should bear its own costs. The bal-ance-sheet would show the particulars of the costs of running the creameries of the company, and the amounts charged to the suppliers of the different creameries. The effect had been that, the Mangorei and central suppliers had decided that their respective creameries would not be open during the coming year, and had decided in favor of home separation. This would mean a reduction in costs, which were all for economy, and probably suppliers in other branches of the company were considering whether it would not pay to undertake home separation also.

It was very gratifying to know that the quality of their produce had been very well maintained. Officially, they were graded third or fourth on the graded list at Moturoa, but he found that for export branded butter it was actually the highest grade for the season from September to April. This spoke very well for the manager and the individual suppliers. HOME SEPARATION. They were going In for more and more home separation, but he thought it would be advisable to have some system whereby the dream could be graded, and that could oply be done by a combination of companies. If an individual supplier was dissatisfied with the grading of his own company he could have it graded by one of the others in the combination. Some of the highest figures in New Zealand were reached in North Auckland, where It was all home separation. The cream was brought into the companies, where it was graded and paid for by grade. If they were to become a home separating factory they would never reach the excellent position they had reached, and which they held to-day. unless they did something about grading their creanj. Mr. Morton concluded his remarks by alluding to the low prices which had been obtained for years for butter-milk, of which, he said, they had never received the value. This may have been due to the fact that round about the factory sunpliers were scattered over a wide area of rough country, which meant hauling the article uphill. This season nobody wanted the butter-milk. They would like to see If it were not possible to ; have it dried and converted Into a stock food, i ' ft might be some time before they could do ! it, hut it seemed a pity to turn into the river good stock food because nobody wanted it. Replying to questions, the chairman gave details of sundrv expenses in the running of the Kaimiro and Mangorei Road creameries. The directors had charged un to the Mangorei Road creamery half the cost of repairs to the building, which accounted for a substantial item in their figures. On the subject of water power, the chairman explained to Mr. Gopperth that the company was negotiating with the New Plymouth Borough Council for a reduction in the usual prices of electrical power when their scheme was developed, owing to being deprived of their water power. They were still using the water power at the factory, and would continue to do so until such time as the borough’s scheme was completed. The report and balance-sheet were then adopted. ELECTION OF DIRECTORS. The retiring directors were Messrs. R. Buyrows, R. Pierie and A. H. Taylor. Mr. Piene did not seek re-election, and the chairman I paid a high tribute tn his work during the I time he had been on the directorate. There were six nominations for the three vacancies, and a ballot resulted In Messrs. Burrows and Taylor being re-elec+ed with Mr. G. Mitchell in the stead of Mr. Pierie. Mr. A. J. Tunoridge was re-elected auditor. GENERAL. A motion that the directors be allowed one shilling per mile one way for their motor-cars used when attending meetings was lost on the voices, as was also a motion put by Mr. BaxI ter to test the feelings, of the meeting regarding consigning butter through the Producers’ Marketing Association. On the subject of repairs to creameries. Mr. R. Pierie moved that the company as a whole bear the cost of renewals and repairs, but the motion was negatived in favor of an amendment that the matter be left in the hands of the directors. EXTRAORDINARY MEETING. The annual meeting was adjourned for seme time in the afternoon to allow of the holding of an extraordinary general meeting for the purpose of considering a resolution for the alteration of the memorandum of association.

The proposed alteration was sought to enable the coinpany to undertake trading on behalf of the shareholders, more particularly to buy on their behalf.

The chairman explained that, although the proposed alteration would give them power to carry on all sorts of trading, what they really wanted was authority to buy separators for their suppliers. Under the present memorandum they had no such power and could give no assistance to a man who wished to procure them for his farm. Further, they could not financially assist any of their suppliers in cases where this would be desirable. Most of the other companies had memoranda of association such as that proposed, and were able to give their shareholders many benefits. Regarding’’separators, they would be able to obtain machines at discounts varying from 15 to 25 per cent., whereas the farmer could not obtain more Ihan 2% per cent. He thought that the shareholders should have this advantage.

The question was not debated for any length of. time, and beyond a few expressions of opinion that it was perhaps a dangerous sort of 'Business, and that the company should confine Itself to butter and cheese-making, there -was very little said. A majority of the shareholders; however, were in> favor of the proposed alteration, but as a three-fourths majority was required, the motion was lost, the voting being: For 300, against 75.