N.Z. DAIRY COMPANY.

Auckland Star, Volume LIX, Issue 198, 22 August 1928, Page 8

N.Z. DAIRY COMPANY.

FINANCING OF SUPPLIEFtS. OVER £80.000 LENT LAST SEASON.' (By Telegraph.—Own Correspondent.) HAMILTON, this day. The annual meeting of shareholdem of the New Zealand Co-Operative Dairy Company was held to-day, Mr. Dynes Fnlton presiding. Mr. Fulton reviewed the year's operations. He referred to the disastrous effect of the drought on the returns, but said the season had had a very beneficial effect on the land. The winter had been exceed* ingl.v mild, and the cows were coming ia in splendid condition. The output so far this season far exceeded Tvi they could confidently look for a much greater output in the coming season, provided there were reasonable climatic coi* ditions. It was quite safe to say that the whole of the South Auckland was looking in greater heart than any other part of the North Island. The Finance Company, which wa« formed in the 1925-23 season, continued to render great service to many supplier* said Mr. Fulton. This company was cob* sidiary and run entirely by the Dairy Company, for the benefit of suppliers who might require financial assistance. The extent to v hich assistance was given w» indicated by the following figures:— Advances in 1025-26 season. £25,000; 1925-27, £67,000; 1927-28, £83.000. The amount repaid was £115,000, and the amount outstanding was £60.000. The tortaL number of suppliers assisted to date was appi*oximately 900, and the average amount advanced was approx* rnately £200. The final figures of the finance company's balance-sheet shared that its operations were very satisfactory and that it would be the means of help> iivg many hundreds of dairy farmers dm* ing periods of financial strain. Within the past few months the Qo*» ernment had brought into operation tha leisiation providing for loans being made to farmers under the rural intermediate credit system. Very satisfactory arrange* ments had been made with this board* whereby the company guaranteed the amount of loans made by the Rural Inter* mediate Credit Board and the board found the money at 6% per cent for i*ny farmers. Growth of Herd-Testing. Herd-testing under the group gyetem continued to progress, Mr. Fuk ton said. The great work was appar» ent and did not require further comment, other than to show the development since the inauguration of the movement under Farmers' Union control. In 1922-23 the number of cows tested was 6900. Ia 1923-21 the testing was taken over by the association, and there were 31,003 con tested; in 1924-25, 58.306; in 1925-21 57,756; in 1926-27, 68,732; in 76,697, and in the incoming year the indications were that there would be a very substantial increase. These figures showed that testing under the group system w» by dairy farmers as essential to successful farming. Referring to the resignation of Mr. H. H. Sterling. Mr. Fult-on said he was exceedingly sorry to lose him. and he be* lieved Mr. Sterling would render a service to the country in his capacity aa General Manager of Railways that would reflect credit on himself and the Dominion. When Mr. Sterling finally left the company he would carry with him the very best wishes from the suppliers, director* management and staff of the company.

"Prospects Very Bright." The prospects for the present eeaso* ■were very bright, inasmuch as price* were good and stocks at Home were fcmall, in comparison with stocks in other year*. Reviewing the position generally, it wovM be seen in the balance-sheet that the cost* pany was in an exceedingly strong fin asciall position, having added this year ta its caipital an additional £56,000, whkk brought the paid-up capital to £1,096.04 L This very satisfactory position enabled the directors to give service to the share* holders on matters pertaining to the prosperity of dairy farmers in a manner thai no other organisation in the Dominic* could do. The policy of the company la the future would be, as it had been in ths past, to continue without ceasing the fuQ» est measure of service to suppliers, coupled with the best returns that could be ob* tained from the prudent, efficient poK cf of the board of directors

The average bonus on butterfat for butter-making for the year was 2.121 d, compared with 2.248 d last year, and the total payments £426.981, compared with £504,679 for the previous, season. Tho bonus on butterfat for cheese-making was distributed to cheese groups in accordance with manufacturing results afl follows: East Tamaki, 22.71 d per Ik butterfat; Orini, 21.14 d; Manawam, 20.45 d; Matatoki, 20.63 d; Akaaka, 19.83 d; Gordonton, 19.62 d; Hairing 20.44 d; Hikutaia, 20.16 d; Huirau Road, 20.1 Id; Matamata, 20.34 d; Rukuhia, 2Q.17d; Eureka, 19.78 d; Shelly Bead, 20.91 d; Wharepoa, 20J>7d. The balance to butter bonus account disclosed a total of £426,981, a decrease of £77,698, which was due to a lower rate bonus and higher average advance. The butter profit and loss account showed: Purchases, £3.170.459 (compared with £2,779,547 last year). Thers has been 594,2971bs more fat carted this year. There was a decrease on freexing, and shipping charges at £8145, or 6/8 per ton, which was wholly due to prompt shipping. Sales of butter amounted to an increase of £579,920. Butter stocks stood at £188,704, • decrease of £286,209. This, taken in at 1/6 per lb f.0.b., was equal to about 185/ per cwt. London, compared with 1/5 last year. Office and general administration charges amounted to £35,547, a decxea« for the year of £2225, equivalent to 2/1 per ton.

Cheese stocks were taken in at 104/ per cwt. less 13/ f.o.'b., equivalent to 91/ f.o.b.