CITY MILK SUPPLY

Evening Post, Volume CXXVII, Issue 92, 20 April 1939, Page 5

CITY MILK SUPPLY

"PAST YEAR'S FIGURES

COUNCIL WELL PLEASED

SMALL NET PROFIT

Satisfaction with the result of the past year's operations of the City Milk Department (to March 31) and congratulations to management and staff were expressed by members of the City Council last night upon the presentation of the annual statement of the general manager (Mr. R. E. Herron).

The' net profit of £4643 17s lOd represented a decrease of £1544 16s Bd, as compared with the net profit of £6188 14s 6d earned during the previous year, stated Mr. Herron.

The sales of milk, cream, and ice cream mixture constituted a record, and this < nabled the department to limit the increase in the selling price of milk to 1.5 d a gallon, although the cost of milk (delivered at the depot) advanced by 1.44 d a gallon and the working expenses and capital charges advanced by 0.2 d a gallon. The profit for the year represented approximately O.ld a quart of milk sold. On the assets side, the value of land, buildings, and plant at Rahui had been increased by £12,713, the cost of completing improvements commenced during the previous year. The value of plant at the main station had been increased by £4604 as a result of the purchase of the new bottle-washer and fillers.

During the year, a loan of £15,000 was raised to meet the cost of additional plant and improvements at Rahui. The conversion loan was reduced by £2021 12s 7d in accordance with the arrangements made for repayment. The department's reserves had been increased during the year by £6234 14s Bd. The chairman of the milk committee (Councillor L. McKenzie) said that the position reflected great credit upon every officer and man in the department. The year had been a most difficult one, and had ended with a small but satisfactory balance of £4643, which in itself showed that the department was not out for large profits; that had never been the department's policy. No consumer could complain that an excessive profit was being made, for it was no more than one-tenth of a penny a quart of milk sold. Though the volume of business had greatly increased, the cost of administration had not risen.

The year had been abnormal as to milk supply, and the department had been forced to go further and further afield. It was now evident that the future main supply would have to be drawn from the Manawatu. The results were exceptionally good and reflected great credit upon Mr. Herron and his officers, said Councillor F. Forsyth. While the department had a monopoly the very modest credit balance, upon the capital invested, was proof that it had in no way been abused. Good service had consistently been given to the public. NEARBY FARMERS AND CITY MILK. Councillor C. H. Chapman asked whether the chairman could say how much milk nearby farmers sold in the city, and also whether nearby farmers went to any particular trouble to tell their customers that a very large j proportion of the milk they sold as nearby farmers really came from the' city depot. Was the market of nearby farmers in the city increasing? asked Councillor M. Fraser. No, said Councillor McKenzie, the volume was decreasing. Mr. Herron said that the number of nearby farmers today was 58, whereas a year ago there were 70 licensees. He estimated that the city milk department supplied 82 per cent, of the milk consumed in the city and the nearby farmers the balance. The proportion of business handled by the nearby farmers was on the •down grade all the time, and a considerable proportion of milk handled by them was bought from the milk department.

Was it not possible for the council to come to some arrangement with the nearby farmers whereby the whole of their business could be taken over? asked Councillor R. McKeen. The position was ridiculous. The nearby farmer was supplying his customers with "nearby farmers' milk" purchased from the City Council. Though the problem was perhaps difficult he thought that an endeavour should be made to complete the municipalisation of the city's milk supply. He also congratulated the * management and staff upon the excellent result of the year's operations.

Councillor Fraser said that the department was to be congratulated also upon the very high standard of service given by the roundsmen.