BONUS OF £18,000

Gisborne Herald, Volume LXIX, Issue 20825, 2 July 1942, Page 2

BONUS OF £IB,OOO

KIA ORA DAIRY COMPANY DECLINE IN PRODUCTION A distribution of £18,166 at the rate of ]j}d per lb. butterfat is recommended by the directors of the Kia Ora Co-operative Dairying Company, Limited, in their report to be submitted to the annual meeting on July IG. After making provision for depreciation, the directors point out, the year’s operations resulted in a net surplus of £ 18,658, which, together with £293 from the appropriation account, made £18,951 available for distribution. In addition to the further payment on butterfat mentioned, the directors recommended a dividend of 3 per cent on paid-up capital to absorb £523, while it was recommended that £262 should be retained for income tax and other contingencies. The estimated average pay-out on all grades for the season up to May 31 reached 15.69 d per lb. butterfat, and if interest on shares, equalling .05d was added to the payment on butterfat the total payment would- become 15.74 d. For the previous season the actual average payment over all grades was 15.79 d. The past season’s manufacture totalled 1354 tons, this being 75 tons lower than for the previous season, or a decline of 5 per cent. This was despite the fact that during the early part of the season up to September, a 15 per cent increase had been recorded, but weather conditions caused a decline afterwards, and the production from November to May was nearly 50 per cent lower than during 1940-41. New Season’s Prospects “Prospects of production for the forthcoming season are not bright,’’ the report adds, "as a number of the large producers are giving up milking or reducing the size of herds on account of the man-power being called for military service.” Mention was made of the Government’s decision to increase the guaranteed price amounting to Jd per lb. of butter, representing ,61d per lb butterfat. The increase would take effect on August 1. The retiring directors are Messrs. J. Davenport. 11. M. White and H. F. Robb, who offered themselves for reelection. The statement of statistics showed that production costs had risen. Total charges, including repairs and depreciation up to f.0.b., amounted to 2.682 d. ner lb. butterfat. compared with’ 2.527 d for the previous season.