SOUTH ISLAND DAIRY ASSOCIATION

Evening Star, Issue 22363, 12 June 1936, Page 13

SOUTH ISLAND DAIRY ASSOCIATION

DROP IN PRODUCTION MARKED INCREASE IN SALES AND FACTORY PLANT Tlio twenty-seventh annual report of the South Island .Dairy Association of New Zealand Limited, which will ho presented at the annual general meeting of members in the Y.M.C.A. on Thursday next, states, inter alia: After making reasonable provision for depreciation in the value of goods in stock and other assets, this account shows a credit balance for the year of £155 18s (id. The directors recommend that this surplus he transferred to the capital fund, which will then amount to £l-1.107 11s Id.

There arc 101 factory companies on the register, being one more than the previous year. The new member is the Cloverlea Company. Temuka. There was a slight drop in the turnover, compared with the previous year. Many of the factories, on account of the fall in their outputs driving 1934-35, had a larger carry-over of stocks of materials than usual, and consequently their indent requirements wore less. The association, however, received a greater share of the available business, and this additional support from the members partly compensated. It does not appear to he generally recognised by factory directors (hat the firms competing with the association base their prices on those quoted by the association. They invariably wait until they get information as to the association’s prices before submitting their indent quotations, and it is quite apparent that the cost of factory requisites would be considerably higher if members had no trading organisation of their own. The directors are pleased to note that every year more members are obtaining, all their requirements through the association. They would commend to all factory directorates the action taken by a number recently in having a resolution passed and recorded in their minutes that,, whenever possible, goods were to be procured from the association. The machinery department had a satisfactory year. The staff was kept fully occupied manufacturing milk and cream nans, coolers, cheese hoops, buckets, etc., and with repair work to factory plant. On account of the drop in the milk supply, cans and hoops were in less demand than usual, but this was more than made up by an increased demand for milk coolers and water pumps. .Sales and installations of factory plant showed a marked increase. PRODUCTION. For the year ended March 31, 1930, there was graded for export at all Dominion ports: Creamery butter, 5,839,590 boxes; whey butter, 50,437 boxes; cheese, 1,192,591. crates. Compared with the previous year, these quantities indicate an increase of 598,036 boxes of butter and a decrease of 107,840 crates of cheese. On a butterfat basis this represents an increase in production of approximately 0 per cent. Taking the export figures as a basis, there has been a drop of 23 per cent, in dairy production in the South Island in the last three years. • The following analysis shows the fall in tonnage rit the various ports:—■ Butter. . Choose. Tons. Tons. Bluff 245 3,527 Dunedin 405 121. Timaru 360 130 Lyttelton 278 , 243 1,348 4,321 On the other hand, the total production for the whole of the Dominion shows an increase of about 10 per cent, for the same period. CHEESE GRADINGS. The following is an analysis of the cheese gradings for the year: Finest. First. Second, p.c. p.e. p.c. Whole Dominion 19.33 78.81 3.20 North Island ... 17,43 79.29 3.28 South Island ... 32.65 64.10 3.19 The relative particulars for the South Island ports are: — Lyttelton ... 47.85 50.79 1.30 Timaru 37.15 62.13 .72 Dunedin 35.40 03.39 1.21 Bluff ... ... 30.57 05.50 3.87 “ BOBBY ” CALVES. The record number of 40,050 calves wore dealt with by the Co-operative 800 l in Southland last season, the previous highest total being 27,385 in 1933. There were no other operators competing with the committee, which meant that all the available calves went into the pool. Dairy farmers aro at present vitally concerned with the question of “ guaranteed ” prices. It will be interesting to them, therefore, to know that the Calves Committee, with the co-operation of the Southland Frozen Meat Company, tried out this system of marketing in connection with the disposal of last season’s calves. The result was most satisfactory, but whether this was due to fortuitous circumstances or otherwise we are not prepared to express a definite opinion. Before the season commenced the committee made an agreement with the Southland Frozen Meat Company, under which the company guaranteed a certain price per calf for the whole of the season’s supply delivered at their Maknrewa and Mataura works. ft was further agreed that the company would attend to the marketing of the skins, veal, and other products, and should the proceeds therefrom, after meeting the usual freezing and other charges, exceed the guaranteed price, the whole of the surplus was to bo handed over to the committee for distribution to the owners of the calves. An advance payment of 0s per calf was made to suppliers, and the substantial surplus realised from the sale of the products has enabled the committee to declare a bonus payment of lOd per calf, making the return to the farmers Gs lOd. The directors’ information is that the average price paid for calves in the North Island last season was under 4s Cel. The value of co-opera-tion has been fully exemplified by these facts. WHARFAGE AND HANDLING CHARGES. In their last report the directors of the association mentioned that representations had been made by them to the Otago Harbour Board for a reduction in the wharfage dues on butter and cheese, and that the board had met their request by reducing the charge from 2s to Is per ton. 1 hoy also asked that the board might give consideration to the receiving and delivery charge of 2s 7d per fun which is made on produce landed at Dunedin. They pointed out that the produce was delivered by lorry from the grading stores In ship’s side, and having regard to the fact that the only service given by the board was to frans-

for the butter or cheese from the lorry into the ship’s slings, the charge of 2s 7d per ton was in their opinion quite unjustified. The Harbour Board at a recent meeting decided to abolish the receiving and delivery charge altogether, and in lien thereof to establish a harbour improvement rate of 3d per ton, this rate to apply to cargo dealt with at Port Chalmers ns well as at Dunedin. The freight contract between the Dairy Board and the shipping companies provides that when the ship requires the blitter or cheese to be loaded at Port Chalmers the ship shall be liable for the additional cost as compared with shipping the produce at Dunedin. The railage costs to Port Chalmers are Gs Id per ton, and in the past the shipping companies have paid 3s 9d of this amount, the balance of 2s 7d being borne by the factory companies. As a result of the Harbour Board's resolution the shipping companies will now be liable for the whole amount of 6s 4d, and this will mean an annual saving to Otago factories of about £370. With the reduction of Is per ton on the wharfage charge the total saving will be about £530. GRADING COMPETITIONS. The highest average grade for export cdteese for the period from October 1. 1935, to April 30, 1936, was secured l by Air T. Y. Aris, manager of the Oinimi factory, Otago, with an average grade of 93.740. Mr Aris has now come out on top three years in succession, and considering that he had the managers of 92 other factories competing with him. Ids success is most meritorious. Ho wins the association's trophy. The leading results in the competition were as follow: —Oniimi, 93.740; Milton. 93.501; Little Akaloa, 93.395; Stirling, 93.382. LONDON DAIRY SHOW. Southland factories again distinguished themselves at the Empire Dairy Show held in London last October. In the open class for colonial cheese the first award was made to the Orepuki factory, Southland (Mr J. Morrison, manager). As a result this company is the winner for the year of the Bledisloe Colonial Cup, the B.edisloe New Zealand l Cup, and the Hausen Trophy. DIRECTORATE. The retiring directors this year are Mr William Stalker (Rangiora. Canterbury) and Mr William Hamilton (Winton. Southland), both of whom are eligible for ve-elcction, _ The only nominations received are in favour of Messrs Stalker and Hamilton,