N.Z. FARMERS' DAIRY UNION.

Dominion, Volume 1, Issue 285, 26 August 1908, Page 3

N.Z. FARMERS' DAIRY UNION.

\ • —7- ~ 1 ANNUAL REPORT. The fifteenth annual report of the directors of tho New Zealand Farmers' Dairy Union is as follows:^ "" In ' submitting the fifteenth annual report, your directors, while regretting that tho year's working has not resulted in a, larger surplus being available for distribution, yet beg to point out that tho advances have averaged lOd. per lb. for the twelve months, which is the highest' price the Com-, pany has ever been able to mako. The directors also beg to stato that this payment has not compelled them to encroach on last yearjs, surplus, which 'is still intact, and has yet to bo allocated as may, be deemed best for all c-oncerr.cd. ■. - . , " The total amount at credit of profit and loss account is now £3222 os. Id.' The directors recommend that it be disposed of as follows: —A dividend at the rate of 5 per cent, per annum on the paid-up capital; and in view of the early termination of the London' agreement the directors very strongly recommend that the shareholders sanction the balance being retained for the purpose of redeeming four or five debentures. This will' enable the Company, to 'secure better terms when' making the new; financial •'•arrangements, the benefit of which will be apparent to every shareholder. "Recognising that season was not a profitable one for the dairyman,,the directors resolved not to make the usual number of calls, and: as the money ithus received for. calls is used to pay off the debenture every year, the bank account is higher- than it otherwise would be if the calls had been made, as the. dehentoe has been redeemed notwithstanding. This will 'eSplain also the comparatively ' large amount of uncalled capital in the balance-sheet. 1 " The butter market last'season was one series of surprises, both locally and in London, at one time reaching as high as 1545. (but at which price only a few boxes were! sold), while the other extreme of 10Jd. was reached locally for bulk in December. At the end of the season there was an excess of butter in the freezing stores for winter requirements, and prices were', coming down every day, until holders began shipping to Africa at such a rate that the-opposite condition now prevails, and the whole of tho Union's butter should be cleared at a good price. Taking them altogether, the market conditions havo been more puzzling and tho prices more fluctuating than has ever beforo been tho case. " Our output for the season was 572 tons 10 cwt. 191bs. of butter and 49} tons of checse, .and it will be seen from this how seriously the drought was felt in the districts where we .operate. ' "As stated in last year's roport, it was not the-intention of the directors to go in for cheese-making; but last July they were induced to reconsider the matter by receiving a gratuitous offer from Mr. James Skerman to hand the Union over his cheese-making plant on the Rangitikei line,- together with the goodwill of his'celebrated 'Silverleys' brand.-' This offer was accepted. "The following table will, supply further information as to, the,year's working:— "Monthly advances: July, August, and September, 9d.; October, 9Jd.; November to February, lOd.March, 10} d.; April, lid.; May and June, lOd. The' average for the whole' soason was lOd." Butter mado ... ■ ... ... 1,252,4191b5. Milk received ... 29,495,6371b5. Average -test ... ... 3.85 Quantity ■of milk to . lib. of , . butter ... ••• 231bs.