KIA ORA BUTTER OUTPUT FOR YEAR UP TO 929 TONS

Gisborne Herald, Volume LXXVII, Issue 23288, 24 June 1950, Page 6

KIA ORA BUTTER OUTPUT FOR YEAR UP TO 929 TONS

With its output of butter up to 92:) tons—an increase of 63 tuns compared witli the 1948-49 season, j and butterfal expected to average! j 37.32(1 per lb., the Kia Ora Ooj operative Dairy C-mpany, Ltd., i has has a highly prosperous year. 1 Its production is valued at over I n.26,Ci)0. The 48th annua! report cf the company is now in circulation among- suppliers and shareholders, who will note with satisfaction lhat the surplus'for the year is £21.329. With a small balance carried forward from last year, there is £21.333 for distribn'icii as against £15,659 at (he same time last year. Payment of a further 2;d per lb on bulterfat supplied during the season will absorb £20.441 of this amount, and £5lO will go in dividends, at the rate of 3 per cent, on share capital. This will be the last appropriation for dividends, a note on the report indicating that m future dairy companies will-be prohibited from paying dividends from the proceeds of dairy produce sales. After provision is made for axation, the company will carry forward £286 into next year's accounts, if the directors' recommendations are accepted bv (lie annual general meeting, scheduled for July 19. Above Estimated Pay-out The directors report a slight increase on the estimated pay-out for the 1948I 19 season, from 26.141 d per lb to i 26.1668 per lb. Realisations of stocks on hand at the date of the last annual meeting proved rather better than had been anticipated. This year's final figure is estimated at 27.82 c! per lb., average over all grades this figure including the value of unsold butter which is taken into account at the guaranteed price, based on grades. Cream collection costs, which have been borne by the company, worked out at 1.03 d per lb„ so that in actual cash payments and collection services the suppliers will "have received a total of 28.85 d for every pound of butterfat sent into the factory. Some companies charge collection costs directly to the suppliers, but Kia Ora has not adopted that practice. An indication of the booming prosperity of the dairy industry, in currency value of its products, is given by a comparison of figures selected from the company’s statement of accounts. Sales of butter this -season have produced £152.931 from overseas and £73,260 from the domestic market; whereas in the 1948-49 season overseas sales produced £139.604 and local sales £60.584. the respective totals being £226,191 and £200.188. The pay-out this season will absorb in all £197.802, shared by 500 suppliers, as against £173,685 in 1948-49, when the factory had 506 suppliers. Directors who retire by rotation at the annual meeting are Messrs. H. B. Bull, J. B. Greig. and M. McCullough, who offer themselves for re-election; Nominations for the directorate will close two clear days prior to the annual meeting.