THE DAIRY INDUSTRY.

Taranaki Daily News, 30 August 1922, Page 8

THE DAIRY INDUSTRY.

1 KAPONGA DAIRY COMPANY. y ANNUAL MEETING. The annual meeting of shareholders of the Kaponga Co-operative Dairy Co., Ltd., was held at Kaponga on Monday. Mr. A. V. Tait (chairman) presided over an attendance of about 50 shareholders. In moving the adoption of the annual report and balance sheet (published yesterday), the chairman said, inter alia: Cheese undisposed of at June 30 comprised five shipments, totalling 2400 crates. Two of these shipments hate since been cleared at 10s per cwt. above the figure at which they were taken in on the balance sheet, and if this price is maintained for the remainder, and all the indications point to such being the case, a further %d will be forthcoming, making the total for the season Is 3%d. The balance over Is 3d will be distributed on November 20, by which time the final returns for the season will be available. You will note that the profit on re-purchase of shares, etc., has been utilised in writing down the land at the three branches. The amount set against land was, however, disproportionately large, and the matter has now been rectified by writing this sum of £825 odd off the land instead of adding It to reserve. You will notice that depreciation has been written off certain items only, and that nothing apparently has been written off the cottages and branch plants. Actually, however, this is not the case. The total amount written off is the sum of these three items of £823, £877, and £450. in all £2150, making a very satisfactory advance for the year in the financial strength of the company. I am sure you will join with me in congratulating the general manager and factory staffs on the manufacturing results obtained. The yield, overrun, etc., are the best in the history of the company, and quality is equally good. I have heard that it has been stated that we produced a lot of second-grade stuff this last season. Here are the facts: Cheese, total make 11,710 crates, second grade 21 crates; creamery butter, total make 4116 boxes, second grade 149 boxes; whey butter, total make G2O boxes, second grade 16 boxes. In common with all factories we are troubled with two adverse factors in connection, with the milk supplied, that is an excess of added water and tainted milk. We have recently secured two sets of apparatus—one that accurately indicates the amount of added water, the other registers the" dirt in milk. We intend subjecting samples to these tests, and where there is room for improvement, confer-

ring with the individuals concerned to see where the difficulty lies, with a view to getting over it. We believe that if we all tackle this matter in a friendly spirit, and we do not intend to approach it in any other, we will be able to effect an improvement that will be beneficial both to the company and the individual. Mr. Hislop has been reappointed general manager for the ensuing season. Charges per lb butier-fat decreased by Id on last year’s charges, but we continue to be handicapped by the supply to the Kaponga branch falling far short of the capacity of the building and plant. The position ev. steadiiy improving, however. This year again we will have additional suppliers at Kaponga. I believe the day is rapidly coming when the advantage will be seen by the farmers concerned of having all the milk within the radius of the Kaponga factory handled under one roof, and that steps will be taken to that end. I am pleased to be able to say that, while a number of our clients are having a hard struggle. 1 believe that they will all weather the difficult times through which we are passing, anti without the loss of a pennj’ piece to

the company. During the past three years we have reduced the number of dry shareholders by 80, and, as a result, at this meeting suppliers control 400 votes and dry shareholders 150, so you see we have already arrived at the conditions of things we aimed at. of placing the company’s affairs in the hands of the suppliers, the latter now having a largely preponderating vote. The amount set down for electricity on the balance sheet, £362 odd, is the amount of interest paid on the sum expended from time to time on the hydro-electric works during the progress of their construction throughout the year. This season for an additional £B5 we will get power for all three factories. You will be /pleased to know that the works have been constructed without any preliminary expense to the company whatever. We were, of course, out of pocket interest on the amount sunk in work while in course of

construction, but this has been offset bj 7 the power supplied us from their plant for two years past by the Town Board. You will recall the arrangement you sanctioned us making with the Town Board last year, in regard to a supply of electricity to individual shareholders. That arrangement was that if we would take up and undertake to dispose of the balance of £3OOO of the board’s electric lighting loan the board would give preference of supply to our shareholders. Had we been able io foresee the financial conditions that were going to prevail, I thing the directors would have hesitated in accepting such an undertaking. However. I am happy to De able to report that by various expedients we have succeeded in what at times looked like rather a hopeless task under the circumstances that arose, and have disposed of the £3OOO worth of debentures. There is the question, where there is a dual plant, as to what shall be made —butter or cheese—and the marketing of whichever article is made. Under present conditions the former is as much a matter of luck as good judgment, and the marketing is largely out of the hands of the directors, and is also profoundly influenced by luck. Mr. Fitzgerald seconded the motion, which was carried. THE DISCUSSION. The secretary said that if tiie charges to London were added to the 4-7 d to f.0.b.. the expenses would total about 9d. Freight to London would come to about 3d, and further expenses before the produce was sold would bring the total up to about 9d. Mr. R. D. Dagg asked if it was the intention of the directors to pay out over the winter months or to distribute payments over the whole year. The chairman pointed out that there was another side to the question. Last year, when the company paid out lOd, it was actually worth Is 3d. He thought that the matter could safely be left to the directors.

Mr. Dagg asked if it was the intention of the directors to install one or two more separators at the factory. Suppliers had to wait at the factory very often—in fact he had seen as many as 18 carts waiting, The chairman pointed out that a butter plant was a very expensive thjng to keep going, as it deteriorated very quickly. This year, if the company had had no butter plant they would have done better than if they had had no dual plant. They would have kept to cheese. However, there was a slight possibility of the company making butter after the end of September. The waiting seemed to be due to the suppliers all coming to the factory at about eight o’clock. Probably a new separator would have to be installed, but he did not think that the trouble warranted it. During the last 14 or 15 years the company had only made butter once, when it was a be.ter proposition than cheese. In reply to Mr. Dagg, the chairman said that it was the intention of the directors to pay 4 per cent, on paid-up capital. A motion that 4 per cent, on paid-up capital be paid was carried. ELECTION OF OFFICERS. The retiring directors were Messrs. A. V. Tait and P. Thoumine, both of whom were eligible for re-election. Mr. A. Schumaker also contested a seat on the directorate. A poll was taken and the voting was recorded as follows: A. V. Tai: 236, P. Thoumine 161, 4. Schumaker 111. Messrs. Tait and Thoumine were re-elected. Mr. H. A. Lennon was reappointed auditor at the same remuneration as last year. GENERAL. The chairman was voted an honorarium of £lOO. The directors were voted an honorarium of 15 guineas each a year. The chairman referred appreciatively to the services of the manager, Mr. W. C. Hislop, and the secretary, Mr. R. G. Conk. A hearty vote of thanks was accorded the general manager and his staff, and to the secThe chairman paid a tribute to the part Mr. M. Fitzgerald had played in the early days of the company. He was one of those responsible for the flourishing condition of the company. The chairman mentioned that Mr. R. T. B. Mellow, who was also one of the founders of the. company, had been suffering from illV .-.’th, and was absent from the meeting bn that account. A rote of sympathy was a? jir- Mellow in his indispos'/ion.—Star.

CARDIFF COMPANY THIRTY-FIRST ANNUAL MEETING. The thirty-first annual meeting of shareholders of the Cardiff Co-op. Dairy Company was held in the Cardiff schoolroom on Monday, the chairman (Mr. J. T. Belcher) presiding over a large attendance. The annual report was as follows: The directors have to congratulate you upon a remarkably good season for production. Prices have not realised the high hopes entertained at the beginning of the season, but have averaged better than seemed likely a few months ago'. It was thought advisable to close with an offer of 8d per lb. f.o.b. for the cheese remaining in store on July 3, and the butter made during the winter Was also sold at satisfactory figures. We have still some cheese on consignment, and the final payment. for butter-fat cannot be unade until the returns come to hand. Suppliers have received Is 3d, leaving an estimated balance of £1625 to allocate. A return of the statistics was as follows: Lbs. milk, 9,215,648; average test, 3.97: lbs. fat, 366,124; lbs. cheese, factory weight, 957,004: lbs. whey butter, 26,642; milk to cheese, 9.40; 'cheese to butter-fat, 2.69; lbs. creamery butter made, 12,363. In moving the adoption of the report and balance-sheet, the chairman said the past season had been a. remarkable one in imany ways. They had had a wonderful year for production. Bountiful nature had fed the cows, and the increase in production resulting therefrom went to show that they had not been feeding their cows sufficiently in the past. This should be a lesson to them for the future. Although the average cow in the district gave about 2571b5. of butter-fat, they could make them do a little better if they tried. It should be possible to bring the average up to' 3001bs. with care, feeding and culling, and by using better bulls. It was not a question of being unable to afford to buy a good bull, but that they could not afford to be without one. They had had “more production” preached at them from all quarters, but what they wanted most was greater economy. The combined charges they had to pay were out of all proportion to the prices they received for their produce. For instance, it cost 3d per lb. to send their produce across the seas. The fluctuations which had taken place in the markets last year were alanming. These were brought about by something other than the law of supply and demand. They needed a. better system of marketing.

Touching on marketing and the need of a better system, the chairman went on to refer to the attempts that had beeij made to form a produce pool. The shipping position, he said, was very unsatisfactory, more especially with regard to cheese. Butter had been got away fairly well, but the cheese was left, and in June last ’ a quarter of their cheese output was still in store. The shipping companies were the trouble, and ships were scarce. Butter was a favorite cargo to place at the bottom of the boats, while special accommodation had to be made for cheese. The shipping charges were outrageous. A slight reduction had been made, amounting to about £2 per ton on butter. The reduction on cheese, however, was only 1-lGd of a penny , per pound, and this he considered farcical. It meant only 12s lOd per ton on cheese. They were still trying to get a further reduction, but he did not know if they would be successful. The fact that the factory had been run throughout the year had been appreciated by those who had milk to supply, and this policy would probably be continued. Reference was then made to the question of making Dart skimmed imllk cheese, stating that if there was anything to be gained from it Cardiff wanted to be in it, but urging the necessity of care lest the good name of New Zealand produce should suffer. While production had gone up very considerably last year, he was pleased to be able to say that the cost of wages had gone down without in any way affecting the quality of their output. The motion was seconded by Mr. Goble and carried after a little discussion. ELECTION OF OFFICERS. The retiring directors were Messrs. E. Bennett, C. Coldwell, and G. A. Marchant, and Mr. Marchant did not seek re-election. The chairman referred appreciatively to the services of Mr. Marchant during his long service to the company, and Mr. Marchant was accorded a special vote of thanks. The following were nomln-ted for the directorate : Messrs. J. Stewart. M. Bielski, C. Marchant. E. Bennett. E. W. Hancock, and A. J. Smith. The ballot resulted as follows: Stewart 26. Bennett 24, Hancock 21 (elected), Marchant 15, Smith 13, Bielski 12. Mr. A. J. Barr was appointed auditor. CAPITAL INCREASED. Tn accordance with notice of motion, the chairman moved: ''That the capital of the company be increased to the amount of £12,000 by the creation of additional capital of the amount of £2OOO, divided into 2000 shares

of £1 each, such shares to be issued as ordfiary shares, ranking as to dividend and distribution of capital on a winding-up pari passu with ordinary shares in the existing capital of the company.” The chairman said it was absolutely necessary to do this. There were over 1300 shares to adjust, and they had only about £4OO to do this with. The motion was seconded by Mr. D. Shannon and carried. CHAIRMAN’S HONORARIUM. Mr. Coldwell moved that the chairman’s honorarium be the same as last year, viz., £5O. Mr. M. Bielski moved as an amendment, that in view: of the financial position, the .chairman's honorarium be reduced from £5O to £25. The amendment was seconded by Mr. Goble, and on. a. ballot being taken it was declared lost, and the motion was then carried. The chairman said he thought he had earned it. GENERAL. It was decided that it be a recommendation to the directors to wait on the banks to secure a reduction in the deduction for share- capital from Id to %d. It was resolved that the directors’ fee for attending special meetings be the same as for ordinary meetings, namely 12s. Votes of thanks were accorded the manager, staff, the chairman, and the outgoing directors. At a subsequent meeting of directors Mr. J. T. Belcher was re-elected chairman for the ensuing year. At a subsequent meeting of directors, Mr. Belcher was re-elected Viairman, and Mr. J. B. Clemow deputy chairman.