NEW BUTTER PRICE

Dominion, Volume 29, Issue 274, 15 August 1936, Page 15

NEW BUTTER PRICE

Opinion at Mauriceville Company Meeting GENERAL SATISFACTION Dominion Special Service. Masterton, August 14. Although the chairman, Mr. V. K. Lemberg, stated be was disappointed with the guaranteed price fixed by the Government. the general opinion expressed at the annual meeting of the shareholders of the MauricevTlle Co-operative Dairy Company to-day indicated that the majority appeared to be satisfied. Mr. Lemberg said the guaranteed prices scheme had been mention last year, but he did pot think anyone there at present had taken it very seriously. He bad not thought it would come about, but all knew what it was now. Speaking for himself, Mr. Lemberg said he was disappointed with the price, and on account of what had been said before farmers had thought it. would nave been better. The sum of 1/3 had been mentioned at election time. However, the price could have been worse. Mr. Lemberg said that on previous occasions he had intimated that the company could carry on satisfactorily if the price fixed were a shilling. That would have been quite good if it were not for the rise in costs. Costs, he said, were going up m all directions at an alarming rate, especially so in the last three months. Anything that had to be bought on the farm was up in price, as also were those things which had to be bought in the factory. If the same number of butter boxes was bought this year as had been bought last season the additional cost woiild be £6OO. Mr. Lemberg said he believed it would be difficult for farmers to get labour. “Who is likely to work on a farm, milking cows seven days a week, when more at" tractive work is offering at five days a week?” he asked. He remarked that the man who had a family willing to assist on the farm would be well off. The Government had promised to pay l-16d. per pound on butter graded 94 and over, and if the company could get all its butter graded at 94 per cent, and over, it would mean roughly £lOOO to the company on its present output. It was therefore more important to-day than ever before to try to get up to that standard. If everybody tried it could be managed all right. “I believe if you use plenty of boiilng water and keep the utensils clean it will go a long wav toward getting finest cream,” he said. There was not the slightest doubt that the company could make the finest blitter out of it. It Was no good complaining to the manager of the company for suppliers could only get the same quality as they put in. If they failed he advised them to get in touch with the farm dairy instructor. After referring to certain aspects of the trading account, Mr. Lemberg said it woudd be seen that the comany had. really done well in the way of goods. The past season, he said, had been an excellent one so far as production was concerned, and he could not remember another season like it. Right through there had been good rains and splendid crops, that position obtaining throughout the North Island and most of the South Island. Record for Company. By the balance-sheet it would be seen that the company had had an increase of 202 tons of butter over the previous season. 'That constituted a record, and he was inclined to think it would remain a record for some time. It was expected to have 5001 b. more cream coming into the factory this year, but even so, he was doubtful if it would be such an excellent season. Prices, he said, were also better last year, and the quality had shown an improvement over the previous year. The proportion of finest was 04.4 per cent., against the previous year’s 89.53 per cent. The improvement of 4.87 per cent, was very satisfactory indeed, and he hoped they would be able to improve on it. Mr. Lemberg said he would Ijke all the suppliers to become shareholders, not that the company was really wanting their capital, but it would mean that the suppliers would have a bigger say in affairs and they would be more united.«“For the coming season we hope things will be quite 0.K.,” be concluded. The secretary. Mr. W. P. Carter, said the percentage of butter in the 94 grade and over last year was 55.37 per cent.; 93-931 grade was 29.61. per cent., and 15 per cent, was under 93. If all the butter was got into the 94 grade it would mean an adidtional £4OO revenue, basing the activities on last year. Mr. Carter said that the average pay-out in all grades was 12.48 d. Not Got the “Wind Up.” Mr. A. Donald, one of the directors, said that he had not got the “wind up” as regard the guaranteed price, ’which in his opinion was very fair, and the Government was not taking any risks. If last year there had been an offer of 106/London. price or 117/- f.o.b. New Zealand, he did not think any of the directors would have turned it down. He thought the daily-farmer was going to be quite all right “I anticipated a shade more, but I believe the price is very fair,” Mr. Donald said.

Mr. A. Woodley said he was very pleased Mr. Donald had taken up that attitude. “I really think the presentGovernjnent is doing the very best it can for the whole of the people,” he said.

Mr. F. G. Butler remarked that his mortgage was going to be adjusted and that was more than the other Government would do.

Mr. Woodley said that some farmers were complaining but it should be remembered that previously Tooley Street took charge of the butter and “we don’t know yet what we are getting for last season’s.”

Referring to the balance-sheet, Mr. Donald contended that it was very unsatisfactory from the point of view of shareholders who were given nothing like the information they were entitled to expect. Another member pointed out that next year there would be standardised balancesheets for all the companies and remarked that the balance-sheet before them compared favourably with those of other companies. Comment was made on the number of directors, Mr. P. Mortenson contending that there should be a reduction. It was no use, he said, eight members going to the meetings, every month and doing nothing but sign cheques. A couple of men could do that. Mr. Mortenson moved a notice of motion along those lines, but as the majority were opposed to it he withdrew it.

Mr. H Mj'ers and Mr. T. B. Heaphy were elected directors. Mr. Lars Neilsen who was a director for 16 years and who did not seek re-election, wae presented with n fountain-pen on behalf of the directors. In making the presentation the chairman said that Mr. Neilsen had started supplying the factory of Mauriceville 47 years ago. It was decide dto pay a dividend of 5 per cent, on paid up capital. At a subsequent meeting of directors Mr. V. K. Lemberg and Mr. H. Myers were re-elected chairman and deputychairman respectively.