THE NEW ZEALAND DAIRY ASSOCIATION.

Auckland Star, Volume XXXV, Issue 202, 24 August 1904, Page 2

THE NEW ZEALAND DAIRY ASSOCIATION.

The fourth general meeting of the New Zealand .Dairy Association was VAx ttiis afternoon. '1 he report of the dir ctors stated: "Your direulois have pleasure in presenting the third annual report and biiii'.ucc-siiect o! the company, i'hey once more congratulate the siiarehc.lders upon a successful season. The iii l consideration of your directors has S£dia been devoted Lo the establishment Ci the company on an absolutely stable IjKsiE. Provision is made lor the redemption of the third set of £4000 do.-ix-fitures, and an extra set of £Woi) itlso been redee-med, making £/000 'iet-emures paid oil during the year. iiiis retlujob Li>e debenture liability of the company by £15.000. The sum of i-/J jiiii l<: expended upon renewals, repairs, genial maiaienanee, and the value of all the company's property has been well sustained. A further suni of £740 13/5 has been written oi. th. n«»w separator account, and the. li'.Miai lU'prcci&ucn allowance upon the whole v«uur: of a! , , property and pUnt, *.t-soi:bi:!g JL-O'.hj has been provided lor. l'rorision has bet'n made for the ptyniejii; of a dividend at the rate of six per cent, upon the paid-up value of Shares allotted prior to June 30. Your directors recommend the paymert, which will absorb £03:! 10/10. A sum of £:i»08 2/ has been allocated, for payment at the rate of one farthing per lb. upon butterfat received. The usual opportunity has again been offered to all suppliers to take up qualifying sharea. The profit bonus payment will be made soon as cheques can be. prepared. An (allotted sum of £789 11/2 -was night forward from last season"s

ixmus account. It hae, in accordance with arrangement, has been added to reserve fund. This latter now stands at £2795 12/6. Zso spoeial appropriation has been made on reserve account this year, but the directors recommend that any unused portion of this year's profit bonus allocation be transferred to the reserve fund. The first issue of 20,000 shares has been entirely absorbed, a* , unsatisfied applications are on han.i The company has 49 milk-receiving stations and two central butter-making stations. The quantity of milk received during the season has been 72,----751,446!b5. The total but'tevfat received has been 2,695,77r>ib5, and the total butter made 2,984,2541bf*. The average butlerfat percentage for all creameries has been 3.703 per cent., and the average overrun 10.701 p<. - c cent. It has taken 24.351bs of milk, to each lib of butter. The average skim milk test for the whole season over all the cream cries has been 0.082 per cent. In addiJ tion to the dividend upon share capital, the payments to shareholders for summer butterfat, including profit bonus, will be 8d per lb. to our smallest and * to our largest creameries. If the whole of the available profit, including payments which ana being made in the form of dividends, and an additional sum which has been devoted to the new -ep.-ralor account, v .--re calculated on a butterfat basis, i<; would increase the payment for shareholders' butterfat by another farthing (actually 0.23 d) per lb. Thus, without encroaching upon the provision which has been made tor maintenance and depreciation, payments to shareholders, upon the graduated scale, would be S\d for creameries supplying not less than 4001bs weekly, up to 9Jd for wefikly supplies of 31001bs. The retiring directors were Messrs. Joseph Gane and William Lash ford West. Both gf/ntlemen were re-nominat-ed, and in the absence of other nominations have been declared elected to fill the vacancies. The auditor. Mr. Seering H. Matthews, F.N.Z.A.A., offers himself for re-election. Dividend warrants will be sent out directly after the adoption of this report. —Wesley Spragg, chairman." The profit and loss sta-tement for the year showed: P^eceipts—Gross profits £31.653 4/1. transfer fees £11 .5/0. rent received £100 7/6; total £31.704 16/7. Expenditure £2.V2R2 7/7, balance £G482 9/; total . J : 31,71>4 16/7. The Chs.lrman (Mr Wesley Spragg-), in moving th>» adoption of the report, stated that In some respects the past season had been a rioorer one than its predecessor was. bot .averaginß one thing with another it had turned out well. The increased supply of m'Jlk from the same number of cows has generally fully made up for other deficiencies. Practically every one of the company's suppliers has. owing to increased snpplies., received as much in cash for the season'fi work as was received last year, and at seven of onr creameries the increased quantity bonus which has been earned has made the return per pound of batterfat as much, and in one case more, than it was last year, and contributors have also had lareer to be paid upon. Tlse most trytnjr feature of the past season has been the sei-ioas and unexpected fall In prices on the I/ondon butter market. Owing to a combination of circumstances which may or not recur apaln nt an early date, the enernl sellincr pri<~e of New Zealand butter < said to have nveraeed threnprbont the ■nson on that market about a halfpenny r pound worse than for the preceding; as«>n. This unexpected result Iβ reported (o hrave cost speculators who bought butter in the colonies a locs of £120,000 for one

ear. As a consequence some repudiations _iave taken place. Quite a number of cooperative companies are requiring rebates from their suppliers, and the low prices are being lamented throughout the colony. Our own company has not had any advantage from haTing received overpayment from financially strong bnt unfortunate speculators, nor has it suffered through repudiations. The result has lieen the safe and satisfactory season's work which is described in the report and balance-sheet which you have heard. Our own London prices have compared favourably with the. prices current as quoted from week to week. This has been in accordance with our usual experience. An unsatisfactory phase of the London market during the last season has been the wide margin of difference between the price of Danish butter and the price of New Zealand butter, which latter at any r-tc in our own case is admittedly as Rood in quality as Danish, and has in previous y.-ars realised within a fraction of Danish ;;' c. I have already indicated at some the cause of this and the remedy. l'rie H y, it is this: Tiis Danes have adopted :; -.-ise and practicable scheme of authoritative y uomiuatiug prices from week to weclc. Now Zealandors hare no such arranjreracJit, but leave their gor is without oversight «*" control to be soK at the will of the audits. Our own eonipavy is fortunate in n*"iag ascents who are competent and caretul md generally able to hold their own, bnt in a market demoralised by weak holders, each opt. trying to clear his consignment, f.j fyents will fail ie rearing prices w! ?;'h !..iftht otherwise be- obtainable. Th" remedy, as I see it. Is to fo low the methods r.uopted by the Danes, and by combinea oversight of a practicable nature to obtain results soiner. h'.t. analogous to theirf. 1 do not recommend proposals for t!P pooling of the colony's dai-y pioducc ritiier under company or Government management, or for the establishment of a central agency for the disposal of it. nor do I favour a system which would involve ary large mesisun- of Ci.isi.Til over it. 1 think these proposals are neither practicable or desirable. We shc : i still need to use existing channels, ami crest arrange accotdJiiSi'y An advisory committee properly constit-i- '1 and authorised, and properly inforr.. .1. which could secure tlie re«pevt of --j-s and principals alike, avfi -.rhich w»m; be expected to give full fair consln>ratio.i t ■-< the interests of colonial principle. -.*vM. I think, be able to nemicate v eckly T-' "", s for standaid qualities or brrrQH, .as c. (sni." , which would enable colonial shippers ■ • check their agents' actions, ami vou>: i* turn exercise a salutary inlluence n-on. .-Ithotigh not a control over, thr Lortd'Mi agents. This I think is the best pian "hich could at present be adopted. Thus far I have dealt only with the London »>:•.-- l:er. I need hardly tell yon that Australia tins not been a buyer of bntter ibis yra; and that the absence of what h\? dnrin" the past few years been a Fplendi<i ■ ■.■' f foi onr winter stocks has very a-lvc: •-<::.' affected balance sheet results. Wi- ]•.-'>- bab'y shall not have nn opening in the CoinmonweaJth during the coniincr season. although it is pretty safe to prophecy tbit in a short cycle of time New KeaUnd w;-i Hgaln hare to feed her big neighbour bn-ii with butter and other produop. Rovtb Africa has been a steady but not a l.iT, , > i'*tomer for our butler. The bulk of i* >• n'lnpljr for that maikpt has been of lowr ;M-i'i>(l goods, and Australia, owing to its imi'-h grr-ater facilities, has done the b"]!.-- ,- of the trade. What we have sold has been pt fairly paying prices, and liae. we nro. fold, been absorbed by the higher class trnd<". Owing to the large quantities of hutter made in the latter part of the season the local market has been glutted, and /.rvince to keen competition among sellers buyers have been abln to practically lis prices and dictate terms. 1 last year spoke of the disadvantages of the existing fysti-:n by which the dairymen of the province generally are heavy i>ud needless losers. 1 then suggested amalgamation as the remedy. There has not Imvmi much disposition shown to fall in with my proposals, but circumstances are themselves operating In thp light direction, and will, I think. arrangement for the fnir and proper pro-iP'-tjon of tile dairymen's interests. I am glad to tell yon that notwithstanding the adverse influences .if which 1 have spokeu.our own local for the ye:ir have been an increase of 82 tuns ovet any previone year. § This is the most sat isf aetory recognition 'which we can receive of thf quality of our butter ant] of the popularity of our brands. We are. however, not without th.' aenstomed tributes from beyond the colony. Tbpse have been received from ageuts, dealers, and others. The most emphatic of thr-so testimonials •-nme ttuough the unexpected channel of the "Sydney Morning Hera'rl ' of January 23rd. The -writer of that journal's London letter reports the results of his inquiries among London buyers, and repeat p the opinion of one of them. who. mentioning our brand by name, said, "It is the pick nt all the bnttere coming from Arstiainsia." I cannot imagine a testimony more independent or one more gratifying. After careful consideration your directors bave attain retained thp "loyalty clause for the coming season. Its cost to the company is small in proportion t.> its usefulness. Thrre is iiiifortnnfttely a fraction of malcontents in ev-ery co-operative company who. for reasons of their awn. arc ready to damagf even their own property. That a very smiill faction of this kind exists in our own company is not to be wondered at. nor is !l to be seijously regarded. At the sam:time It is the company's duty to protect the general suppliers by making it difficult for disaffected persons to spilt up distri< and reduce the price to be paid to suppliers at any creamery. In doing this the company directly protects itself and its propetty. The loyalty clause anticipates and piovides against this difficulty. It also defeats other similar influences. Of course the rnmppny pays a little for it. but we get value for all such expenditure. Notwithstanding the lnrge Increase in supplies of milk, the quantity of borir.rfnf received .ti each creamery hzis been very small. Averaged over ten months from August to June, the actual supply has been 12731bs lie:- creamery per wee. or putting it in another way our manufacture of huttor has been equal to 'XI tons ppr creamery for the vpar. If insiPßd of 27 tons we had receiv■l au average of say 00 tons per creamery, w«s th.- case in th" neighbouring eomiiy, our eirnmery expenses would bave

'■en reduced by considerably more I han one half, or upon a quantity of butter equal to what we actually made the savins would hare been roughly £S(X*>. This wonld have been a handsome sum to ndd to profits, and to divide as such. I want you to lemeinber that no fair estimate can bo obtained of tin- results of onr season's work unless these farts are borne in mind. I again remind you that the btoall creameries are being nin in scattered and isolated districts and very widespread assistance is being priven. without it In any way Injuring or taking fn>m those who, by reason of their central and available, or in any way more favoured situations, are better able to help themselves. Tlip company's policy of payments by lesults. U-.. by quantity of miUj supplied to individual creameries, insures the maximum of fairness for each one and of all round advantage for all." The payment f<> shareholders at our larger creameries, including proiit Imnus of one farthing per pound, will amount to Sid per pound, iv addition to which a sum of £9:io has been allocated for dividends as interest upon paid-up share capital. The upset price for the eominsi season's hutterfat lias been reduced one farthing. This does' not mean that a worse reason is necepsarily anticipated; indeed, indications do not point that way: hut the year may b<: worse, and it is at least, business wisdom tti see that no overpayments are made, especially where, as in our case, there are a number of nun-shareholding supptiers whom it would not be honourable for us to ask for rehotes. and from whom it would not be possible for us to compel return payments. During the year esn new sharps have been t«Ueii up. principally by npw suppliers. Many more hav> hppn obtained by transfer. Thr> whole of l.h- firm issuo of 20 OS 111 sharps has now been "bsorbed. and there if an unsatisfied demand. It is proposed that a brief space shall elapse before a further issne is offered." Mr referred to the nolicv pursued hv the directors jn strengthening *-ho position of the company and keeping up its properties. He said the company had been in existence for just three years. Tn Thnt period it had reduced its debt by £I~vWO. hrilt 11 nrw ere.i merles. and r.M r tinllv re-furnished others at a cost of .rs~T_an of which they hpri paid for without ineressinir the indebtedness of the co--iny. and established n reserve of £"2795. closing he acknowleriErecl the valuable -vires of the whole of their st*n". espp -.iiy mentionine the? seeretnry (Mr Paov> n n the two oenrrnl fneforv mnnm-prs (thg, Messrs Morris **ros i also the nrpr T <v<-en and CTiristtnaFV and his fellow directors.