THE DAIRY INDUSTRY.

Taranaki Daily News, 6 September 1922, Page 8

THE DAIRY INDUSTRY.

KAUPOKONUI COMPANY. THE ANNUAL MEETING. The annual meeting of the Kaupokonui Co-operative Dairy Factory Company, Ltd., was held on Monday. Mr. Thomas McPhillips (chairman) presided over a large attendance. The following statistics were attached to the report: Milk received, 65,149,0471 b.: but- • ter-fat, 2.623,2831 b.; average test, 4.026; cost of manufacture to f.o.b. per lb. butter-fat (including depreciation). 4.21 d. Used for cheese-making—Milk, 54,980,7671 b.; butter-fat, 2,192,4641 b. ; cheese (2624 tons 17ewt. 3qrs. 91b.), 5,879.7571 b.; lbs. of milk to make 11b. cheese, 9.55; lbs. cheese to lb. butter-fat (after allowing 2% per cent. shrinkage), 2.61. Used for butter-making—lo.l6B.26olb. ; butter-fat. 430,8191 b. ; lbs. butter made (226 tons 19cwt. Iqr. 171 b.). 508.4T61b.) ; lbs. m>lk to make 11b. butter, 20; over-run, IS; lbs. whey butter (53 tons 13cwt. 2qrs.), 120,232. Tn moving the adoption of the annual report and balance-sheet, the chairman said that while the pay-out had not been as large this season as the previous one, the company had paid out- all that the produce could bring. However, the company’s operations compared very favorably with those of any ; other company. The directors had had a very anxious season. Owing to a breakdown in the machinery a large quantity of the previous year's cheese had arrived on the London market in a he'ated and damaged condition, with the result that there was considerable difficulty in disposing of it. It was eventually sold at a considerable loss to the shareholders. The company had done the best it could under the circumstances, and he did not want the impression to get abroad that the inferior cheese was due to inferior milk or inferior manufacture. It had been the breakdown in the machinery alone which had been responsible for the loss. The unfortunate occurrence had had the effect of daimaging the reputation of Kaupokonui cheese for a short time, but owing to the general excellence of their produce their good name had been regained. Their cheese had been second to none in the grading stores, and their agents. Messrs. Lonsdale and Co., had written them a letter to the effect that their cheese compared very favorably with any other cheese which they had handled this season. Such a state of affairs spoke very highly for the manager, the branch managers, and their assistants. I There was a matter which he wished to I mention was of great importance to the dairy industry. He referred to the. federation ot the better understanding between dairy companies. Co-operation among dairy companies was nothing but a hy-word. Right throughout New Zealand there were factories whose present territories overlapped. Then there were factories where there should be none at all. In their own district, for example, a better understanding between dairy companies would have saved the producers a tremendous amount of monev, because it would have put a stop to "rotten finance." He honed that a federation nf dairy companies would soon bp brought about. However, to make a success of such a scheme it would be necessary for all companies to give and take. With a federation of dairy companies the producers would be much better able to deal with those professional men, the agents. Then there was another matter which required due consideration. It was the establishment of a better system of marketing produce at the other side of the world. Already there had been a step in that direction. Producers struggled on their farms and sent good articles to Patea. after which they did not know what became of It. The chairman quoted an Instance which came before the company’s notice; 14.000 crates of cheese were shipped ! on the Ruapehu. The first 3000 crates brought I 108 s. but owing to a drop in the market some i of the remainder of the consignment sold nt ! as low a price as 70s. The firms had said that a quantity of produce had arrived on the (market and had caused the drop. The chairman thought It would have been more in the producers’ Interests if the firms had stored the cheese Instead of putting it on the glutted market. . The chairman then thanked the various officials for their work, concluding with an examination of the balance-sheet. THE DISCUSSION. Mr. Rushin said he understood that about £20.000 worth of store debts had been put on the books during the last two or three months of last year, through the late chairman allowing suppliers to take manures, etc., on credit. The ehairman said that a large amount of credit, had been given in the two or three months referred to, but nothing like £20.000. At the beginning of the year, when he took office as chainman. the book debts stood at £30.000. They had now been reduced to £28,000. What he wanted the shareholders to realise was that they must pay their store debts. Mr. Rourke, in congratulating the directors and management on presenting such a good balance-sheet, said the butter had realised a price which would enable a pay-out of la 5d to be made, and cheese would have barely paid Is 3d. Suppliers who had milked during the months of April. May and .Tune had late cows coming in. He contended that they should have got Is 5d for butter-fat for those months, that is. provided it was intended to pay out for July. August and September on the basis of is 7d. for which the companj’ sold their butter. Otherwise the suppliers who dried cows off early and had them coming in early would be on a double win. The chainman replied that the directors had not yet discussed the matter, but they would Mr. Bourke said that the shares held in the Esmont Box Company were a wasting asset. Mr. Bourke also drew the attention of the shareholders to the wages account. He said the rumour had been current to the effect that the prices of articles at the branch stores were different to the prices ruling at the central store. The stores manager replied that there should he no difference in the prices at the branch stores and the central stores. Mr. Hastie pointed out that the company was paying interest on £140.000 as against £20.000 in 1916. How did the directors account fnr the big increase? The chairman said that when he took office the total debt of the company stood at £140.000, but there had been no increase in the Interest charges during the past year. The balance of indebtedness of the company on account of interest for the past vear was approximately £l9OO, which could not he considered heavy. Mr. Rushin proposed a new scheme of finance whereby shareholders paid more share capital, and on leaving the district were able to "*t their money back again. Th** chairman said there was no doubt that the Kaupokonui company was under-capital-ised. There was not another similar co-opera-tive concern that was not. They were singling nlonv' on an 801 b. basis when they should bo nn a 401 b. basis. Howeve”. thev had built their factories to last for all time, even if I a portion of the expense had been met by borrowed money instead of share capital. Mr. A. E. Clark asked if it would not he a wise move to increase share capital. The chairman •’"•'d it was a matter which the directors would think over. He quite re.alised that every shareholder in the company was working hard to .make h’s company the most flourishing in New Zealand. The report and balance-sheet were adopted. ELECTION OF OFFICERS. The retiring directors were Messrs. E. T. Burke and A. Gamlin (who retired by rotation). and Mr. F. Muegeridge (who retired by ballot). All were e’igible for re-election, and Messrs. W. T. Wells. Ben Rushin. and Edgar Putt were also nominated. A po’l was taken, and the result was as follows: Messrs. Burke 521. Muggeridge 396. Wei’s 278. Gamlin 267. Rushin and Putt 131 each. Messrs. Burke. Muggeridge and Wells were therefore elected. The elected directors returned thanks for their election. Mr. H. A. Lennon was re-elected auditor at th© same remuneration. Directors’ fees were fixed at the same figure as last year, and the chairman was granted the same honorarium as last year. GENERAL. The chairman said he had had many bal-ance-sheets before him this year, but he had not seen one which showed such a high test

as Kaupokonul. Their teSt was 4.026, which was very high. This brought up the matter of standardisation of milk. For Cheese-making a 3.6, 3.7, or 3.8 test was required, and cheese at these tests sold for the same price as cheese at a 4.0 test. It would be seen, then, that the Consumer got the benefit of the high test, and not the producer. The chairman mentioned that the company did not have to consider the replacement of buildings, as other companies which had erected wooden buildings did. The Kaupokonui Company had gone in for concrete buildings. and he explained that as a consequence of the re-valuation of the buildings for the purposes of the balance-sheet, the directors considered there was no need to allow depreciation on buildings, but, as would be seen from the balance-sheet, provision was made for depreciation on machinery and plant. —Star.