DAIRYING YEAR

Ashburton Guardian, Volume 54, Issue 2, 13 October 1933, Page 6

DAIRYING YEAR

THE ASHBURTON FACTORY.

REVIEW OF THE YEAR'S, WORK.

MEETING OF SHAREHOLDERS. The annual meeting of shareholders in the Ashburton Co-operative Dairy Factory Company, Ltd., was held this afternoon, when Mr S. Andrew (chairman of the Board of Directors), presided over a good attendance. - Moving the adoption of the report and' balance-sheet (which have already been published) the chairman congratulated the company on a very satisfactory credit balance on the year's working-.

"The increase of 75 tons of butter oyer last year's record output, is, in the face Of the dry autumn that was experienced, an achievement that calls for special mention," he said. "The factory has dealt with this increased tonnage at a small increase of £2OO in actual' manufacturing costs, with a corresponding advantage to the supplier. Since "1929, tiie number of suppliers has increased by 160, making the total now 961. For the corresponding period, the company's output has increased by 40 per cent. The factory is now working to its fullest capacity, and costs are quite equal to the lowest in Canterbury.

"It will be observed from the bal-ance-sheets that the plant over the last year or two has increased by £921. This has been brought about by the increased capacity required to handle an ever-increasing output. The actual outlay in plant has been. £1465. This has not been purchased by bank overdraft, but partially from additional capital subscribed over the past three years and by the writing down, which is a strong point in the company's balancesheet, not noticed by the casual observer. The Bonus Payment. "It must be exceedingly gratifying to suppliers to know that a substantial bonus payment of Id pea- lb, butter-fat, over the whole year, is available for distribution after the lean and trying year they have just passed through. The prospects at the beginning of the season looked reasonably good for a profitable dairying year. The feed prospects were excellent, and a pay-out of Is and lid to the suppliers appeared a conservative advance. From September, when the market was at 112 s per cwt.,- London, there was a downward fall until the market reached the disastrous low level of 64s per cwt. hi April, and the suppliers' advance payment had to be cut down to as low as 6d per lb butter-fat. To make matters more difficult, this County suffered from a serious drought, which made the wintering of stock a costly business. "The directors haye taken into consideration the tragic financial conditions under many dairy farmers have unfortunately been placed, and have considered it their duty for this year to assist the suppliers.to the fullest extent, to enable them to carry on with more hope for the coming year. "Although the dairying industry has received a serious setback during the past year, it has, oyer a series of years, been more favourably placed in regard to price leyel than some other branches of farming. If the dairy farmers with suitable land will stick to the industry, they will find m the natural order of things it will not be long before they have a more favourable reward for persistence and enterprise. No good purpose is served by a defeatist attitude either by the farmer or those who may be financing him. It is in the interests of all concerned that the farms and stock be maintained in good order and condition. There will then be less leeway to be made up when the financial storm is weathered, and a quicker return made to more stable and prosperous conditions. Careful Culling Necessary. "The necessity for providing suitable and ample fodder to keep up the vitality and production of our herds, and the need for careful culling in order to eliminate the robber-cow cannot be over-stressed, if the dairying industry is to be kept at a payable level. It-is also more than eyer necessary in times of low prices that special attention be paid to the. quality of the article produced. There is always a demand for a' high quality article, and such will command an increased price. The New Zealand producers should not be satisfied with the quality, price, or marketing of our butter and cheese wlnle the Danish article commands a substantial premium on the British markets. "This Dominion has all the natural advantages to produce a superior article. The. cattle grazo in the open, under healthy conditions, the year round. The abundance of sunshine, fresh air and clear water, combined with the rich pastures has enabled a butter to be produced richer in healthgiving vitamin content than that from any other country. "A campaign should be initiated to rid this country of all diseased cattle. It could be done with tho present low price of stock by the Government without being called upon to pay an unduly largo sum by way of compensation. Diseased stock have little commercial value, are unprofitable for the farmer to keep, as well as being a distinct menace to the health of the community. The increased demand and the increased price through being able to advertise our dairy produce witli a guarantee as to its purity, as well as its quality, would soon add to the financial stability and prestige of our dairy industry." The adoption of the report and balance-sheet was seconded by Mr W. T. Lill, who said that it appeared we lived in a land of plenty. On behalf of one of the original shareholders of the company, Mr \V. H. Amos objected to tho directors' declaration that if dividends were not collected by a certain date the ch'vi-

dends would be forfeited to tho company. If the directors Avere not Prepared to send out the dividends they should be prepared to take over the shares.

Tho chairman said the company was not able to buy back shares. * Notice of motion would have to be given to alter the ruling. The secretary (Mr L. ft. Clarke) stated that there were a large number of single shares and as the dividend per share was 7.2:1 it would be a costly' business to send out cheques for these amounts to shareholders living in other centres. Before the shares could be purchased the company would have to be registered under the Dairy Companies Act, and to clo that some shareholder would have to move at the next annual meeting to have this done. It would be a profitable business to buy the shares baok. Mr Amos said he had no wish to to make any move that would cost the Company money, but shareholders in the position named should be notified regarding the dividend. Mr J. H. Robertson considered the dividends should be sent out where they exceeded ss. The chairman said the question should be left to the consideration of the directors.

In reply to Mr Amos, tho chairman said there would be no difficulty in advising shareholders that their dividends could be paid to authorised agents. • Mr Lill said there were many shares held by people whoso addresses were not known to the Company. Dividends for these people had previously been paid into their accounts for six years, when 1 the Government claimed them. .

A motion on the lines suggested by Mr Amos, moved by him and seconded by Mr F. G. Evans, was carried. 'in reply to Mr E. A. Bland, the chairman said the rule was that suppliers must be shareholders before they could collect the bonus, but there had not been any difficulty about this in the past. The report and balance-sheet' were adopted. ' Messrs A. Moore and 11. McDowell were declared re-elected to the board of directors, these being the only candidates for tlie two vacancies. Objecting to the system of proxy voting, which, he said, gave voting power into the hands of the directors, Mr Robertson advocated a return to postal voting. A vote of thanks to the staff was carried with acclamation. A similar vote was accorded the directors.