DAIRY FARMERS

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

DAIRY FARMERS

C’HEI.TEN II AM SEPPUKUS

THE ANNEAL MEET INC CHAIRMAN'S REVIEW Mi- N. E. Jensen, the net.inf; Chairman, presided ni the nmnna.l nicctilift of the shareholders of the Cheltenham On-oipe-rative Dairy CVtmpnny held this mornihr in. the Oddfellows’ Hall. Mr Jensen gave the following review of (.ho year’s operations and of the dairy outlook generally (other references being reporter! on page 5) : COSTS OK MANUFACTURE Following- on sneh a. season of low price* I. r our butter it is particularly gratifying to- report that, the cost of ma-uufar-tur©' has again shown a reduction over the previous season, of practically 10s pm ton butter. This is equivalent in £ s. d. on the searson’s output of £11'23. To illustrate the value derived from 1 lie reduction in manufacturing costs, it is only necessary to take the nimipiwison bock' to two' seasons ago. Eor the 1027-38 season the cost from form to f.0i.1). was cio 17s 2d pnr ton butter, this season’s costs were d 4 ns 7d, thus making reduction of £1 lls 7d per ton. This represents a. direct saving to the C ompany’s suppliers of C 3548 Bs, and “money saved is mofcey earned,” EXCHANCE RATES Exchange on London drafts has helped the- price considerably. Whereas previous season, we. paid £162.4 15s Id. last season we received £1576 los 3d, a. difference of £3141 10s 4d, present exchange rates are in our favour to the extent of £3 10s per dOO, ajnd tlie premium, om London exchange is worth. Id tier ll> on butter at the present time. THE PIG FARM It is gratifying to report the profit of £555 on the operations of the pig farm for last season. As stated in the report new farrowing styes have been built and these facilities for rearing more weanet's ; will further help and should make this a profitable department for the Company. FUTURE PROSPECTS We had at one time a. fail- trade for butter with America and Australia, but both of these countries have banged, bolted, and (barred their doors against us. America’s import duty on butter is 15 cents or 74d-per ‘lb., yet in. face of tliis New Zealand onys 9i millions annually of American goods and they buy only 31 millions worth from us. Australia lias imposed a duty of 6d per lb., im our butter, now Canada follows by imposing a restrictive duty on our butter iif two pence pe rpound. As 17,OCO tons of butter were imported by "sJanada last year, their action in imposing this higher tariff is a, serious blow to New Zealand producers. Your directors considered the possibility of such a development and they aeos-dimgly submitted a remit on tile matter to. the, National Dairy Conference at Hamilton in June. Tlie remit dealt with file necessity of New Zealand producers curtailing buying goods of American a.ud Canada production, and it was carried unanimously fiy the Conference. It is gratifying that retiailiatorv methods against Canadian goods have been adopted by our Government and it is to be hoped that negotiations for the removal of these trade barriers will lie successful. In view of 'the fact, that other countries arc placing an embargo om rail- produce, it will be forcibly driven home to- us all, that as England is tbe only market where our produce is accepted freely anil without duty, it is therefore in, our own interests to support her trade and to buy less from the. others. Tt is somewhat- resnssuring to note that the. supplies of butter from Russia continue small, and it now seems certain that production in Siberia, owing to economic conditions, lias declined very considerably since last year. COST OF PRODUCTION Another feature which requires consideration, is the .cost of production to the farmers. Farm, costs are 70 pci- cent greater- than in pre-war days, yet we have to accept the world’s parity fin- our good which are receding to pre-war levels. The increasing co«t of living has been made the excuse for r aising the wage standard for secondary industries ill the past and these industries are protected "by high tariffs against world commodities. The prosperity of New Zealanders depends on the- values received by farmers for their produce, but we are unable to produce goods and sell on world’s, parity a.t a payable price on the present high cost of production. It is therefore in l < interest- of all concerned, not only to farmers, but to everyone, that the. dust of production, be reduced, otherwise our Dominion cannot hop© to prosper. If there was less spent on, amusements, and more work done, I think New Zealand would he in a more prosperous condition.

QUESTION AND REPLY Speaking io Hie report. Air. Thevenard asked wlinl vvn H lieing done to stop overlapping of cream eolleeting lorries. Air. Di smoiid replied that a eommittee was al work on riegoiiations anil preparing lines of action. All factories of the district were Iking approached, and tile Dairy Division is also giving assistance. A block system liml been suggested, farmers in , aeli area to supply (lie l’aeior.v in that block, but this was not free from difficulty. Mr. Desmond said Ili e coinmitte P was at work on tlie problem, bill at present he saw no solution. One supplier suggested an amalgamation of (lie factories as a solution. Mr. Thevenaril said if the companies oquid not settle tliis difficulty they could not hold their markets. Mr. .Tenkinson had some criticism of tlie balance-sheet, anil asked what wa.s tli,. explanation of the “control levy," referred to the Dairy Control Hoard, which he blamed for the finetun ting prices and them- produce. ill. Desmond replied to tlie various questions raised b.v Air. Jenklnson. QUESTION OF POAVER Speaking on the power question, Mr. J. McDonald said the cost of power os taken out eovered the cost of interest and depreciation, which was not tlie case in tlie previous year. This year’s costs showed a clear profit to the company as compared to tlie previous year. The Company and the Manavynt n-Oroua Power Board had had a long drawn out dispute about certain charges. This dispnt,, had been re ferred to a single arbitrator by agreement between the two parties, and this‘arbitrator had heard the two sides of th c case. They now awaited liis decision. Voice-. AA’ho is tlie arildrator? Mr. McDonald: Air. Hitchcock, engineer for the Christchurch City Council Mr. C. Hansmann congratulated the directors on the success of the year’s undertaking saying that they must have had a worrying time. Mr. Thevenard asked for an extension of tlie lorry service along the Mil roads. At present lie had tlie lony service to liis jdace in the summer months, and lie asked for if in tlie winter also. Air. McDonald re plied he was currying out the policy of keeping down collecting costs as much as possible. Art. Jenkinson suggested the Company should employ a first-class veterinary .surgeon to be at the beck and call of the suppliers. The surgeon should not lie called an inspector, Inn by some other name. Ilis salary might be £IOOO a year, lint they should get a good man. Mr. Jenson said every farmer should be- a veterinary surgeon himself.

Air. E. Sinclair did not agree witli with tlie suggestion. lie thought the farmer wa s tlie bes! vet. There '.veil too many theorists on the road now Mr. A. Rainier asked why tlie factory had got out of th e habit of showing butter. Air. Jenson said lie did not think show butter was any fair sample of a factory output. He was not keen on showing. Mr. McDonald said lie had had good success in showing, but lie did not think it wa s worth while. Shew but.or was made from selected cream ana was not a general indication of th ( , product of a factory. There was not mnch benefit from an advertising point of view. His factory had now had certain improvements made, and lie might have a go next year at showing. Speaking on Die grade, Mr. McDonald sai l his factory'manufactured for export all the year round, and this had its effect on the grading. Mr. E. Sinclair spoke at length on tlie working of the pig farm. Some experiments hail been carried ouT with thy feeding of grain and meal to the pigs, and they had found that pigs fed on milk alone did just as well as pigs which also received rations of grain meals. Suggesting that the pig farm belonged to the shareholders. Air. Sinclair said they should have a field day at the factory and the pig farm. (Left Sitting).