HIGHER PAYMENT

Ashburton Guardian, Volume 61, Issue 3, 15 October 1940, Page 6

HIGHER PAYMENT

MIDLAND DAIRY COMPANY.

CHAIRMAN’S ANNUAL REVIEW. PRICES AFTER THE WAR. AN OPTIMISTIC STATEMENT. “It is with a sense of at least some satisfaction that I move the adoption of the report and balance sheet, because, during the course of the year the Board indicated to suppliers that a higher butterfat payment could be expected, and this has materialised in the further final payment of lid a lb of butterfat, which is )d a. lb better than that of last year,”, said Mr S. P. Taylor (chairman of Directors of the 'Midland Dairy Co., Ltd.) at the annual meeting of suppliers to-day. “The main features in the balance sheet are: (a) A reduction in the bank overdraft of £2113; (b) .a reduction of £6OOO in ovei’-all costs, and; (c) an increase of £2907 in the appropriation account for distribution to suppliers. “I think you will agree with me that all three features indicate considerable improvement in a year made more difficult by a further decrease in cream supply, which was general throughout Canterbury. “I would point out that the bank overdraft ■would have been lower by a further £I6OO only for the necessity of carrying on hand a larger manufacturing and general stock in war time. Costs have been substantially reduced, mainly by carrying into the year under review and maintaining throughout the year, the economies practised in the last half of the previous year, when a phenomenal fall in supply was experienced, and, to some extent, also by the removal of the anomoly whereby the Company now receives back its own butter boxes from stored butter.

“I can congratulate suppliers on the fact that 71.29 per cent, of the cream graded “Finest Grade”, 26.79 per cent ‘First Grade” and only 1.92 per cent. ‘Second Grade.” Anything I may have said with reference to the financial side of the accounts, is not more important than the quality of the produce manufactured. It is in keeping with the congratulations I have given to suppliers for the grade of cream, that I congratulate the factory managers and their staff on the very high average grade of 93.56 per cent, for butter. This is an excellent performance when it is considered that the largest proportion of the company’s output is exported. “The company’s subsidiary activities continue to flourish. The bacon factory at Timaru is serving a useful purpose. A total of 1390 pigs was handled during the year, and last April activities were commenced in the Ashburton district. The company’s factory is the only farmers-owned bacon factory in the South Island and its existence can serve a truly useful purpose. “The company’s trading activities show sound results, the separator service representative is fully occupied, and although the service' did not commence until November, 1939, a busy season was experienced with profitable nett results. A dairying year has closed, we are looking into the future of another, and from, present appearances it looks as though the; current year will show even better results than the last.

“In concluding, I want to say that I am afraid I cannot share the opinion so recently expressed through the press, that we should lock pessimistically on the j)rice to be obtained for dairy produce, or any other produce, after the war. Legislators the world over have learnt a lot sine© the last war and its depressions, with the result that whereas butterfat rose to 2s 6d a lb during the last war, there does not appear much chance of its rising over Is 5d in this war; and, the same applies to. other produce. In every country tlie tendency is to legislate against a boom. If this course is followed the ratio of fall in produce prices, whatever it may or may not be, must be less. But this is no time for pessimistic utterances, let us do our utmost now, for if we fail, it will matter not what tlie price of produce is after the war.”

Tho' meeting was not open to the newspapers.