WAIKATO CHEESE AND BACON FACTORY COMPANY (LIMITED).

Temuka Leader, Issue 1377, 11 August 1885, Page 3

WAIKATO CHEESE AND BACON FACTORY COMPANY (LIMITED).

The following report of the third annual meeting of the above Company, taken from tbs VVaikato Times of July 28th, will no doubt be read with interest by our readers, seeing that there are two similar factories in this district. It seems that one of the greatest drawbacks to the profitable success of these new industries is want of experience by flie management, and if the suggestion of the Chairman of the Waikato Dairy Company—that each Dairy Company should giro the others the benefit of the experience gained during the year—were acted upon, these shortcomings would soon disappear. It is with this view that we publish the followiog report for the benefit of thope intcrrsted in our two companies, for perhaps a few suggestions given in this report may be of. use to them. The Chairman of Directors, Mr S. T. Seddon, in presenting his annual report to the shareholders regretted that there was a deficiency on the year's operations of £222 16a 3d, which was chiefly attributable to the fact that there were 7447 pounds of cheese short of the number of gallons of milk supplied, which seemed to indicate that a gallon of milk would not make a pound of ripe cheese. Lift year there was a difference, and it wafl decided to take of milk to the gallon insteid of 10'".» ; but owing to the milk being still less rich in quality this year the figures now show that it had taken ]o!b lOoz. In consequence of the uncertainty in the quality of milk, during the next year the directors have decided to lower it price of milk to 3£<i per gallon. Had this half penny per gallon been saved during the past season it would hare made a diuerence

of £235 15s 6d, which with interest saved would hiive left a'profit balance of £35. Pigs had returned about 38 per cent, profit, and butter about 30 per cent. What little was made at the latter end of the se'ison w«s only with the object of getting milk for the pigs, and to gain knowledge in the efficient working of a very ingenious piece of machinery (De Laval's patent). There were 44701bs of superior bacon and hams on hand ready for market and which would find ready disposal The stock and machinery were in first-class condition, and additions had been made to the buildings in the shape of a emoke house, etc. In closing his report the Chairman stated that he was pleased to inform the shareholders that the factory still continues to turn out cheese of uniformly high quality and it commands a ready sale. We take the following figures from the balcnce-sheet:— gallons of milk had been received during theyear,for which £191114s 6d had been paid ; 49,729i1bs of cheese had been sold, realising £1043 19s 4d ; and there were 55 9951bs of cheeso on hand valued at £1227 19s sd. The assets of the Company are valued at £5431 15s lid, the chief items of which are : Uncalled up capital, £1125 ; property, £937 17s 8d; buildings, £606 6s lOd ; machinery, £BSB 7s 9£d ; cheese on hand, £1227 19a 5d ; pigs and bacon, £245 3s lid ; book debts, £2OB 0s B£d. The liabilities are : Loan, £IOOO ; Advance on London consignment, £225 ; bills payable, £767 13s Id ; accounts owing, £321 17s 4d ; Bunk of N.Z. overdraft £922 8s 2d ; balance of assets over liabilities, £2194 17s 4d. The Chairman in moving the adoption of the report, was sorry to the balanGe-sheet was unsatisfactory, inasmuch as it failed to show a return for tlia money invested. No doubt different causes have operated adversely in different factories, arising in part from the fact that we are all beginners and do not thoroughly understand the business. These shortcomings would soon disappear if the management of each Dairy Company would give its fellows the benefit of its experience gained each year, remembering that not only the interests of their proprietory was in their hands, but also the agricultural interests generally. He considered, however, that the balance sheet w»s the least unsatisfactory of the number, inasmuch that it showed that had the Company paid the same prices as other dairies for its milk supply, viz., 3|d instead of 4d per gallon, it would have paid its way from the beginning. Shareholders who were not milk suppliers might blame the directors for not lowering the price at the beginning of the season, but it could not be done, because when the factory was started a contract was made with certain parties, whereby they agreed to supply so many gallons of milk per diem for the first two years at 4d per gallon, otherwise the factory could not have started. Another reason was that the EnglishAmerican Dairy authorities state that a gallon of milk will make a pound of cheese. The N.Z. Inspector ol Dairies makes the same assertion, and Captain Runciman the same, both before and after his visit to America. But the latter gentleman pointed out that they had only taken lOlbs for the gallon, whereas the Imperial gallon weighed 101 b 3os. Thus accounting for the first year's loss, they them decided to take full weight, 101 b ioz. The most unsatisfactory part of the business was that although the weight of milk supplied had been increased, the net product of cheese turned out had decreased. The Chairman then moved the adoption of the report, which was seconded.

Mr J. J. Barauoh said that although at first opposed to the reduction in the price of milk, he thought the sale of it would still be very profitable to those who had not to employ labor. There were so few industries that paid, and the price of farm produce was so low he would still continue to supply. There was something unsatisfactory about the falling off in the quality of the milk. It took six ounces more to make a pound of cheese thiß year than last, and the Company had lost about 3| tons by it. Captain Runciman said, in reference to some remark* which had fallen from the Chairman, that a gallon of milk would produce a pound of cheese a month old. In America cheese was sold at that age, but in this country it was necessary that it should be matured, and hence the loss. Mr Swarbrick did not think the financial position was fully appreciated. With £2500 in land and buildings they were paying 8 and 9 per cent, on the bulk of the capital employed. They were working the concern on a few hundreds when they ought to have a capital of a couple of thousands. They should increase the capital and accept a reduction in the price of milk, or the factory would not go on. Captain Steel did not think the balancesheet altogether unsatisfactory. £IBB6 for milk, £157 for coals and stores, and £lB3 for carting had gone into general circulation. It the milk was weak in cheese-giving qualities it was all right for hutter. Ihere was no pump work in that. (Laughter). He traced a great deal of the loss to the pigs. They had bought bad pigs, but they had either to throw away the whey or buy the pigs. He thought now it would have been better to have thrown it away. This had been to a great extent remedied. They had pigs of a better class " boarding out," which they would buy in again in the spring, and he believed they would turn out well. He agreed that they were working on insufficient capital ; he could gay that the management was all that could be desired, and he thought on the whole the year's operations had been reasonably succcessful. The Chairman, referring to a previous speaker's remarks, agreed that the capital had been too small at the begiuinjf and they must remedy the evil. The motion was then put and carried. Votes of thanks were passed to the Secretary, the retiring Directors, and the acting-Secretary. The Secretory, Mr Knot, in returning thanks, said the factory had done a great deal of good in the district in many ways. If he never got a penny in dividends, he was satisfied as a business man that he had received considerable benefit, with others, from the establishment of this and other factories. Captain Steele and Mr W. Day were elected Directors, and Messrs G. Edgeuombe and A. Campbell were reelected auditors. The meeting then closed tvith a vote of i thanks to the Chairman.