DAIRY INDUSTRY

Manawatu Standard, Volume LVII, Issue 222, 19 August 1937, Page 11

DAIRY INDUSTRY

AWAHURI COMPANY. GOOD YEAR EXPERIENCED. “Again the Awaliuri Dairy Company’s payout is the best I know of in the Dominion,” said Mr N. Campbell, chairman of tho company’s board of directors, at the annual meeting yesterday, when moving the adoption of the report (previously published). “On behalf of the board of directors I must congratulate the company on another successful year,” Air Campbell continued. “Production remained approximately the same, being 1309 tons 12cwt. as against 1327 tons lewt., or 17 tons less, the price Is 2.2596 d being 1.19 d per lb better than last veai\ “The quality of our butter has maintained its position as one of the best in New Zealand and as under the guaranteed price we get -Jd more for butter grading over 94 points, it shows how essential it is to produce the best quality. That can only be accomplished by the co-operation of our suppliers andstaff. It is my opinion that, if the Government want quality, they should also pay a premium for butter reaching the 94)- and 95 grade. All factories and suppliers would then strive to receive the higher payment for their product and produce tlie best quality. “The Executive Commission of Agriculture and the dairy companies of tins district have arranged and agreed on the supply to each company for one year, and I am pleased to say that our company can still receive cream, from our present suppliers. The object ol zoning was to reduce costs and improve quality. In our factory this can hardly apply as our costs, quality and pa.y-out on tho whole are of the best. THE GUARANTEED PRICE. “The guaranteed price has now been in operation for one year. At one period it appeared there would be a considerable loss in the account of the industry owing to low prices, hut fortunately values have risen above ,the guaranteed price and it now anpears that there will be a. surplus in the account. The cheese' producer would undoiibtedlv have received more under a free market. ' “The benefits of the guaranteed price have been nullified by the increased costs during the last twelve months. This increase has been quite substantial and the farmer is worse off than he was during the past year. The guaranteed price for last year was based on a 10 years’ average. This estimate overlooked the fact that last year’s price had no relation to the cost of production in factory and on our farms the prices of boxes alone being 2s this year as against last year’s price of Is 4jd. “Wo have been working under the 1931 award for factory employees except that the men got time and a half for Saturday afternoon and Sunday and ia. dn.v off per week. “A r ou will observe that our balancesheet is set out in " slightly different form than in previous veal's. This method is what is known as the standardised balance-sheet and it is compulsory by law to use the special form. I think it is quite good as it enables one to compare different companies’ balance-sheets at a glance.

} 1 “You will notice that there is a mo-! tion regarding the Dairy Industry Act; to ho moved to-day. This is at the di-; lection of the Executive Commission of j Agriculture and we have no option but j to carry the motion. Another matter of I moment is share capital, and in this i connection we have been directed that all suppliers must be shareholders or have an amount equivalent to the number of shares they should take deducted from the cheques. The basis of allotment will be onc.£l share for every 3001 b of butterfat. As soon as possible suppliers will be advised of the number of shares they have to take. “There is a matter in the report that j I want to specially draw your attention j to, and that is our average grade fig-' ure for the year. The report shows the j figure as 94.253 whereas it should have been 94.035. The error was caused by j the gividing department, advising us the i grade figure of one of the other local companies instead of our own figure. 1 In conclusion I must take this nppor- j tunity of thanking the suppliers for • the continued interest they are taking , in the affairs of the company. I also want to thank the manager, secretary, directors and staff for the support they i have given me in the ivst '•ear.” 1 The auditors certified tha tt he weight of butter manufactured from each pound of butterfat used for tbe manufacture i of butter had been 1.2222 and the per- [ rentage which the weight of unsalted | butter bore to the total weight of but- j ter manufactured had been 9.4207 per cent. The auditors added that there . was nothing which called for any comment.

Mr J. A. Cheetham seconded the motion for the adoption of the renort and balance-sheet. There was no discussion and the motion was carried. ' GENERAL.

It was decided to-pay a dividend of G per cent, on paid-up capital, the mover being Mr Haslock, and tbe seconder Mr Cheetham.

Messrs Dempsy and Litchfield, F.P.A. (N.Z.), were re-appointed auditors on the motion of Messrs J. A. Russell and E. 0. Bond and at an increased fee. It was decided that the next annual meeting bo held on the third Wednesday in August, at noon, at Awahmi. Messrs E. O. Bond and A. Montgomerie retired from the, directorate in the ordinary course and a third vacancy was caused by the departure of Air A. J. Baxter for Wellington. Those nominated were Messrs Bond, Montgomerie,

J. F. Lynch and Mason Duric. Messrs Bond and Montgomerie were returned with Mr Lynch. The last-named will sit .for tire remainder of Mr Baxter’s term, and the others for a full term. When returning thanks, Air Bond said that Mr Campbell did not receive anything like the remuneration he was really entitled to. Afessrs Montgomerie, Lynch, and Durie also spoke.

The chairman moved: “That the company make application for registration under the Pairy Industry Act, 1908.” The chairman said it was necessary for the company to register under the “Cooperative Act.” The suppliers would then become shareholders in due course and the company would be able to buy back “dry” shares. Jt was proposed that the "share issue be one £2 10s share for every 750 pounds of butterfat.

The motion was seconded by Air P. Hansen and carried, there being only one dissentient.

Air Clieetliam congratulated the directors on the position of the company. Me also congratulated the manager (Mr W. S. Death) on his organising ability, the secretary (Mr ('. D. Fraser) and the staff on the efficient manner in which they had carried out their duties.

Tim manager returned thanks on his own behalf and the staff. He said the year had been a strenuous one on account of the new regulations governing a 48-hour week. The inception of the six-dav week had brought problems, but it was now proposed that a 40-hour week he obesrved. The speaker thanked the suppliers for the quality of the cream last season (9G per cent, finest). Grading was carried out with the utmost care and impartiality. Air Death urged that all should take the greatest care with cream in- the spring months. Suppliers should pay all due attention to the weed land-cress when it was young. Like a young carrot in appearance, it Caused trouble when the cream was heated, although its effect was hard to detect in the cream at the receiving stage. The weed came away before the grass in young pasture and. every effort should be taken to eradicate it. Mr Fraser also returned thanks, saying lie was proud of the company which had liquidated an overdraft of •£7OOO or £BOOO which it had about 12 years ago and now had a working balance, which meant that after all commitments had been met there was still a balance at the bank.

At a subsequent meeting of directors Air Campbell was re-elected chairman, j