CHETENHAM CO.

Feilding Star, Volume 8, Issue 2668, 26 August 1930, Page 5

CHETENHAM CO.

DAIRYING INDUSTRY

REVIEW OF TIIE SEASON

CONDITIONS AND RETURNS

Tin. following review of (he season was given by the aeting-Cliairman of Directors of the Cheltenham Dairy Co.. Mr. N. C. Jensen, at to-day’s annual meeting of shoreholders : PRODUCTION Tn common with the other parts of the Dominion in this 'list riel, we Jiav,, enjoyed a good jirodueing season. with a large increase in outpuilt. over tile previous season, our increase being 194 tons of hotter. The seasonal conditions were gem rally favourable for dairying purposes, particularly, during the summer months. The average grade oi our toiltis' wa s 93.902 jMiiuts, therefore “Palo ha” butter still ranks amongst the highest, grading factories. The average grade is slightly higher than tho previous year. There lias been a gradual improvement in the butter grade during the past three seasons. namely. 1927-28. 93.50 points: 1028-2093.738. 1029-30 03.002. Tho quality of cream showed a slight improvement on the previous season It will lie seen that the percentage of finest Increased by 2.78 per cent., whilst there was 1.04 per cent, less of first and .853 less of second. It hoped that thi s steady progress in tin- right direction will he maintained, as we must keep up the quality of our product. Whilst on the subject of cream grades I would mention the dairy regulation requiring cream to he graded into two grades—firs: and second during June. July and August, have been amended—and such cream is in future to be grad'd by using the three grades— Finest. First and Second, according to quality throughout the twelve months of the year. ABOUT PRICES Shareholders are fully aware of the exceptionally low prices which were ruuling for the past season. The market opened In late September at a favourable time of 184 s ewt. London, the average quotation for Acroner was 181 s. but from there onwards a continual fall in mines took place until the market eventually reached tha record low levon in recent years of 120 s ewt. In tin* past season the highest price wc received for our butter was 184 ewt.. and the lowest was 1245. making a difference of 00s ewt. or 8:1 per lb. In the pervious season the difference between tho highest and lowest prices was only 22s (id ewt or 2-j<l per It). It will he seen how very difficult it was for anyone to gunge the future of the market accurately, and it has been sheer good fortune if a factory was lucky enough to have made forward sales which have this season beaten consignment prices. The London agents themselves were unable to forecast the market, as their advances against shipments, widen are based on 9 per cent, of the estimator realisations. wer e higher than tho actual nett returns on practically ever,' shipment, with the eonsNiuence that factories were owing for considerable amounts to the London agents for the deficiencies on tho season's shipments. The prices from April until the balance of the season ranged from 124 s to 140 s cwr. LONDON PATTED TRADE During tho year the Company’s agents developed the "Pakeha” patred trade in England, and consequently a larg e proportion of our butter was sold in Hit pats. The account sales to hand show that the butter sold through This channel lias returned the nett premium over bulk sales on the same shipment of approximately a half-penny per lb. This latest method of sale is preferable to the system of selling in bulk, as the butter is sold under our own brand and reaches the consumer a s genuin e "Pakeha” and does not lose its identity. It also helps to create a demand from the grocers for ‘‘Pakeha” hulk butter. Several shareholders availed themselves of the opportunity of sending parcels of gift butter to their friends in England which all helps to advertise “ Pakeha” brand TIIE PAYOUT The balance-sheet shows that there is a balance of £10.138 for distribuiion. The directors have decided to divide this amount by paying a bonus of 2d per lb on the second six months of the season and also a l'tirtherld per lb on March supply, making 2}d on March and 2d January, February, April. May and June. A dividend of 5 per cent, on share eapi-

tal is ixcommented. After providing for the dividend and the bonus to suppliers, there is a small balance left of £l2l out of which the directors recommend a bonus lx paid to TUc company’s general employees. The payout of 1/3 3-5 U is under 'the circumstance much tiettcr than was expected amt if an equal return ,-a.t 1m: obtained for out bntterfat next season I think we wilt all be satisfied- The pay-out this season Is 3d uer lb bntterfat below the total payment for last season; this, of couse. is the result of the lower market values for our produce. It may h ( . so me consolation to know that we dairy farmers tinv e not suffered to the same extent by lower values than the less fortunate sheetanners, who have had to accept for their wool n drop in value of over 50 per cent., as compared with the drop in return for our product, of only I<> per cent. BUILMNiGS AND PLANT Reference has been made in our annual report to the raising of the roof of' tlie front portion of the factory buildings and to the installation of new plant. This was commenced at tile, beginning of the past season and it- was found necessary to bold river “jortion -of the work until this winter. This js now being carried out- and when completed will improve manufacturing conditions conditions considerably. COW TESTING It will be noted from the directors’ report that the question of tile cost . the Company’s Cow Testing Association at per cow is increasing on account 0 f the decline in. the number of cowstested with the Association. Tlie point has been, reached when the increasing cost per cow must he curtailed. Yctur Directors have 'Considered the matter and it is their opinion that the Company instead of , as heretofore bearing the total ootst of our Association should subsidise the same amount of Is per cow to the Company's Association as is do-no to the group system, the members who test with the: Company’s Association to pay the balance of the cost of the testing but the Directors undertake- to see that the gross cost will not exceed 2s 3d per cow, that means to say the supplier who tests with the Company’s .Association) would nob be called upon to pay more than Is 3d per cow for a season.