NATIONAL DAIRY ASSOCIATION

Hawera Star, Volume XLVI, 26 June 1926, Page 3

NATIONAL DAIRY ASSOCIATION

ANN EAL REPORT

AGOUMULATED PROFITS TOTAL

£29,116

The striking growth o fitihe National Dairy Association of Now Zealand, Ltd., iis set out in its 32nd annual report and 'balance to 'be presented at a general meeting of member® iiri tne Town Hall at Wellington on July 13. AGO I'JIUL ATED PROFITS. When the Dairy Association was formed those lesponsible did not realise the forthcoming remarkable development oif the industry. Established for their benefit in the supervision of dairy produce shipments, and the purchase of supplies, the association adopted the piinciiple of paying an annual subscription to cover costs. No capital haa been contributed since, but the original simiaill profits '.secured by coilect-ive buying have grown, and ‘have been put to reserve. From' 1907 to 1916 they slowly advanced to l the' £SOOO mark. Fior the next six years there was au average increase, of £SOOO a year, untv. in j 922 the peak figure, £35,000, was reached. The 1923 season, saw a rapid decline, bnrfc isiince it-hen tilie ■total bcbs ■•steadily aclvtaimeed until accumulated profits in 1926 stand 1 at £29,116.

REIVIEIW O'F THE SEASON The annual report for the year ended April 30. opens with the numeration of a credit balance of £226 2s 8d on the profit and loss account; and a membership roll of 264, as against 28* Hast year. . ■ ■ Reviewing, the year, the report - states that although the early part of the winter was mild, coaulutwon*. changed early in July, and for the- ensuing three months! heavy rain, a.nd cold, severe winds produced a late laud unproductive spring. From: October on the factories soon reached normal output. The autumn was mild, and in some cases the shortage of the spring was orvercome. This: did not apply to Wiairarlapa and Hawke’s Bay—seriously affected by the prolonged dry summer and autumn. . The conversion to- an, eo ui valent butter-fat basis of the butter and cheese received at the grading stores shows a eonsideriahle Dominion decrease. Ihe produce graded in New Zealand Horn A’U'f’Usib 1, 1925, ho Aiprt'l 50, 1926, weighed : Butter.. 59.159 tons; cheese, 65.414 tons. This is a. decrease of 12.1 per cent. in. butter, and a 6 per cent, increase in oheo.se. over the previous vear’w figure's. There was a, 6.5 per cent, decrease in butiterlfat cqtuvalent. THE HOME MARKET. In 1925 New Zealand, with 1,255,5 1-1 ewt, supplied 21.5 per cent, of the imports of butter into Great Britain, as against 20 per cent in 1924, 22 per cent, in 1923. Denmark with 1.658,052 cwt was our only rival a.s regards quantity of cheese supplied, to the Home iniair-ket.

There baas not been great difference® between the prices of Ne,w Zealand and Danish butter in the past' year that prevailed at time during: the years- immediately anterior, .and twice during tihe twelve months the two butters have been, quoted at about the .same figure. The difference, in the price of cheese in favour of Canada, is a matter of grave inirportaniee, a remedy for which, dhoukl be sought before another season cioininxeniced. SHIRRING. Prior to the commencement of the export iseason the Control Board gave notice of its intention: to' regulate the monthly quantities of b-utter anid cheese to ,be shipped, for the purpose of distributing the, year’s exports to England over the twelve months, anu avoid overloading the mlairket. The . British seamen.’® strike interfered! with this arrangement, and the subsequent shipment of unusually large quantities moist have had a, distuibing effect on the markets. Arrangements have been entered into with iblie Control Board whereby, on its assumption of absolute couihrol, all the shipping, of produce ait Auckland and New Pilvimiouth will be carried out by the association. These duties will entail additional work by the board m the form of 'advances to factories, the preparation of advance note®, drafts, checking (specifications, etc. REM ISSION O'F INCOME TAX. . Tit© Land and Income Pax Act 'Has been amended, providing that where the rules of co-operative companies stipulate that their income is distributable uinong suppliers in proportion to their su-ppilies. and is solely devised from, the manufacture of products of miilk; (a) Any reserve fund created out of such monies, (b) any profits darned forward .from such monies, and (c) any pomtrion of such mon-ieisi (without limit) set aside for depreciation , are not taxable. LABOR ATOR Y 'AND EXPERIMENTAL STATION. [n the last annual report reference was made ito the intention of the Government to establish these at Wallaceviile. On ring Mlay a, report was received by the Government front Sir-Frank Heath, in which, a strong leooniiimemlatiou made that itlio station ee placed wt a, district engaged 'in the butter and dheeise i.ntlustry. The Government has adopted the recommendation, and the Prime Minister lias, stated that immediate steps will he' taken to give effect' ,to it. The Government has under consideration the ennslti tuition of a special bra.ncli, of the Department ol Agriculture dealing solely with, problem® affecting the dairy industry. Durthe plaist year the Laboratory at Rawer®, established by the: Federation of Smith Taranaki Factories, Ira® been do-' i.ng excellent work, and is tapidly extending its use-fullness. COUP U I, SOU Y GRADING OF CREAM. his very necessary mutter is now under consideration by the Government, and it is understood that legislation will he mitro'dueedi during .the ensuing session, of Parliament to bring i into ""force this highly desirable measure. There is little doubt that the adoption . ol a- compohsory system . ol grading will have the result, of improving the quality of the manufactured Hintide, and prove beneficial to the industry. HERD TESTING. This is continuing to make progress, and. with the larger number of cows now being tested, there should be an appreciable iitcrelase in the annual individual production of the herds. To ensure this it is iimpeiiiaitive that individuail testing .should he followed by athorough, culling of the low-producing cow®. To ensure that the animals canned cannot be passed on to another dairy, the practice of “cull cow

drives’’ to the freezing worlds, should be eiieouPaged wherever possible. If a more general u.se of artificial manures fo the - top-dressing of pastures, and the provision of more belts ol shelter trees on. the farms: were adoted, the Dominion’s production of butter and cheese could be largely increased. MISCELLANEOUS. • Since the close of the financial year wrrangemonts have been made to established a superannuation system to ■be contributed to by the staff of the association. During the year the agencies handled by the association have been considerably increased, aind now include a greater range of -machinery of the best, type® for general factory use. The Hon. J. B-. Gow (Auckland) and Messrs. J. R. Murdoch (Taranaki) and J. T>. Brown (Wellington) retired from the directorate, and offered themselves for re-election with the addition ol Messrs, l l '. Maul and 11. Bond, both of the Capital city. Mr. Y. El. Masters had been appointed to be manager alt Auckland, vice Mr. J. Lookltead resigned. A number of companies have adopted the articles prepared by the association’s solicitor, and' other’®, have this step in view.

REMITS TO ANNUAL MEETING. From the Ivaraniea. Co-operative Dairy. Factory Company; Ltd—(l) That, in the opinion of this meeting, the present system of taxing the whole of the dairy industry in this country with the coastwise freights on ’produce from Taranaki and .Wanganui ports for transhipment is unfair, unjust, and iniquitous. Further, this meeting requests the Control Board to immediately endeavour to rectify this anomaly. At the present time these coastwise freights are costing £50,000 to £60,000, and we- think it is an injustice that this charge should be against the industry as. a whole, when people shipping from other ports have to pay. (2) That with a view to carrying out the concentration of export daily produce on five or six main ports-, and thus securing more frequent, regular and cheaper shipping, this conference recommends the Control Board to pay all freights on export produce from exporting factory’s nearest port or railway station to, port- of shipment, all such freights -to be pooled. From the Levin Co-operative Dairy Company, Ltd.—That it be a recommendation to the Dairy Control Board to charge to the respective companies concerned, any. coastwise freight at present included in the overseas freight contract. The revenue derived from companies under this head to be returned to the industry throughout New Zealand on a pro rata basis of the amount paid by each, company by way of lew.

From the Belvedere co-operative Dairy Company, Ltd. —That this conference of the National Dairy Association makes the following recommendation to the New Zealand Dairy Produce Control Board: That upon the board taking absolute control, all payments for cheese be made on a basis of the actual price realised on the sale-, of c heese in each grade, that no premium be paid for" superfine grade, or deduction made where cheese is graded second or third grade. From the Morrinsville Dairy Company, Ltd.—(l) That it be a recommendation to - the - Dairy Produce Control Board to endeavour to reach a uniform agreement with all distributors of New Zealand butter in Great Britain in regard to the matter of weights, viz., New Zealand Government grade notes to be the basis of computation, with a minimum of 561 b 6oz to be accepted as 561 b London (or other port) weight (2) That it be a. recommendation to the Railway Department to draw up a scheme to enable dairy factory employees to travel at holiday excursion rates upon railways when travelling upon annual holidays. From the Kaipara Co-operative Dairy Factory Company, Ltd.—(l) That the executive of the National Dairy Association be requested to extend’ legal and financial assistance to any member becoming involved in legal proceedings by reason of their attempting to exercise control over assignments of funds or orders for payment given by the suppliers of such company. (2) That it. be a recommendation from this conference to the Control Board that in fixing advance payments for export dairy produce a- sliding scale, based on New Zealand grade points, be adopted in place of the proposed payments for the three classes — first grade, second grade, and superfine. If is suggested that 90 points be paid at a normal rate, with an addition for each grade point above, and a deduction. for each grade point below the normal That as export is by cwts., a rate per cwt. be adopted in place oi a rate per lb.

From tlie Kairanga Co-operative Dairy Company, Ltd. —That seeing the New’ Zealand Dairy Produce Export Control Board is working in conjunction with the National Dairy Association of New Zealand, Ltd., and the finances of the National Dairy Association of New Zealand, Ltd., are assured, that the National Dairy Association of New Zealand, Ltd., take steps to return the promissory notes held by them on behalf of the various companies. From the Cheltenham Dairy Company, Ltd. —Having regard to the recent increase of duty in the United States on our primary products, that the Minister of Customs be urged to make early revision of the New Zealand customs tariff in respect to goods from countries where high customs duties are charged on New Zealand piodncts. From- the Moa. Farmers’ Co-operative Dairy Company, Ltd. —In view of the fact that over 65 per cent., of the farms in this Dominion are at present under farm dairy instruction under the voluntary system,’ which, occasions considerable overlapping in the executing of the work, we consider that it be a recommendation from this conference to the Department of Agriculture to abolish, the present grading charges on bbtter and cheese exported,- and substitute an .. equitable; lew on the total butter-fat received at each factory per annum ; to recover the costs of grading dairy produce, and- to take over the entire control of farm dairy instruction on the block svsteni.” NOTICE OF MOTION.

From the- Rotorua Co-operative Company. Ltd.: “That the conference to lie held in Wellington, 1926, consider the advisability of holding the 1927 conference in Rotorua.”