DAIRY INDUSTRY.

Auckland Star, Volume LXVI, Issue 180, 1 August 1935, Page 23

DAIRY INDUSTRY.

ROOM FOR OPTIMISM. MORRINSVILLE CHAIRMAN'S REVIEW. ANSWER TO CRITICS. (From Our Own Correspondent.) MORRINSVILLE, Wednesday. "It is something to be thankful for that butter is now up to 94/ a cwt as compared with the average price of only 73/ a cwt in July of last year," said Mr. J. E. Leeson, chairman of directors of the Morrinsville Co-op. Dairy Company, at the ' company's thirteenth annual meeting to-day. Mr. Leeson has been chairman of directors for all but the first four years of the company"s existence, and was re-elected chairman for the tenth successive year to-day.

Prospects Appear Brighter. Hopeful features were the improved position of stocks of butter in London, and the turning over of a certain number of dairy farmers to sheep. Because of the turnover to sheep the Morrins-•A-illc epmpany had lost, about .400 cows, and if the same was-'happening with other dairy companies this should stop the increase in the New Zealand production of butter this season and so help to improve prices. Figures were quoted by Mr. Leeson showing that imports into Britain for the first six months of .1935 were 10,000 tons less than in the corresponding period of 1934, due to a decline in foreign supplies. Stocks of butter in Britain in June totalled 31,000 tons, or 12,000 tons less than a year ago. These facts, coupled with brighter conditions in industrial and commercial . circles in Britain, indicated better returns to dairy farmers for the season just commencing. The payout to farmers last season was slightly higher than for the two previous years, and this might reasonably be regarded as a sign that things were on the up grade.

Quality Has Improved. That the dairy industry had done a great deal to improve the quality of its produce in recent years was stressed by Mr. Lecson, who pointed to the fact that since 1029 tlie butter exported by New Zealand Jiacl increased by 57,000 tons, yet the percentage graded finest had also increased from 70 per cent to 78 per cent. Thus it appeared that the new commission on agriculture should concentrate on finding new markets and not waste it<> efforts on trying to improve quality. Mr. Leeson emphasised the fact that dairy companies and farmers were continuously spending money on new equipment to improve the quality of their produce. He dep*ecated critieir-nn by city men who returned from visits to Britain and said that New Zealand must improve the quality of its produce. Such critics did not do justice to the dairy industry, which in response to the appeal to meet difficult times )-ad not only increased its output but also improved the quality, as shown by grading figures. Reviewing the company's operations, Mr. Leeson said the output of 2910 tons of butter, or 135 tons lese than last, year, was satisfactory in view, of tlie dry season. The average return to suppliers for the season was estimated at 9.717 d per pound for all grades of butterfat. A bonus of id per lb was paid out on July 20, and a further bonus of Jd on July 30. Butter unsold had been taken into stock at 80/ to 85/, so that if the present price level in London was maintained suppliers could expect a further supplementary payment later in the year. Last season 00 per cent of the MorrinsviUe company's butter had been graded finest. The cost of manufacture from factory to f.o.b. had been reduced by od a ton to £8 18/9. Three directors, Messrs. J. F.. Leeson, F. G. Kennedy and W. Findlay, who retired by rotation, were re-elected unopposed, as also was the auditor, Mr. T. J. Ryan. A dividend of 3J per cent on paid up capital was approved. After considerable discuseion a motion recommending the directors to institute a ward system of election of directors was defeated by 43 votes to 24. Mr. A. Topliain gave notice of motion to have the matter brought before the next annual meeting.