GOOD SEASON

Hauraki Plains Gazette, Volume 53, Issue 32458, 24 July 1944, Page 5

GOOD SEASON

THAMES VALLEY DAIRY RECORD HIGH GRADING REVIEW OF THE CHAIRMAN “It has not been a good season from the dairying point of view, but in the circumstances we must regard the result as being very favourable to the company,” commented the chairman of directors of the Te ArohaThames Valley Co-operative Dairy Company Ltd., Mr D. Courtney, at the annual meeting held in the Parish Hall, Te Aroha on July 15. Only twenty people including staff and directors, at-' tended the meeting, which was one of the briefest and least contentious in recent years.

During the dry period of the summer, the chairman continued, production had been down by some 380' tons from the previous season. This result was partly seasonal and partly due to the transport zoning regulations which for the first time had been in operation throughout the season. The autumn, however, had been good and. the final figure had been 1775 tons as indicated in the official report which appeared in a previous issue. None Better Referring to the payout which, with bonuses would total 17.079 d pel’ pound, Mr Courtney said he had not yet seen a company balance sheet revealing a better payout. In the matof costs it had to be remembered that wages were fixed by the Arbitration Court and prices of materials were out of the company’s control. No Interest Charges Taking the balance sheet item by item, Mr Courtney drew - attention to the- fact that no interest charges were shown this year. This was due to the fact that the manufacturing and marketing account had been well kept up by sales on the local market. The increase had been from £9/1,000 to £140,000, and the result of this trading was that money from sales came to hand early enough to pay out monthly to the suppliers instead of working on an overdraft as would have been the case had the products been exported. Moreover, in the latter part of the season credits were accumulated in the bank and directors, after considering the matter, decided that this should be made available to the Dairydom Finance Company instead of that working, as previously, on overdraft. Interest was paid to the dairy company on this and the dairy company’s interests- were .further safeguarded in that the money was always on call. “It has made us free of interest charges for the year and I think it is legitimate and good business from the suppliers’ point of view,” said Mr Courtney. The Price Question “There has been considerable agitation concerning price recently,” he continued. '“ln fact I might say. I have never seen more unrest in the industry than has been manifest during the last few months. This has been due to the fact that producers have not been satisfied with the 1.2i1d increase to cover wages charges. The statement surrounding the granting of this is somewhat contradictory and nobody is prepared to take the responsibility of having recommended that figure to the /Government. “The industry representatives on the Dairy Board asked for an increase of 1.99 d per lb., and then I understand what happened was that the Dairy Board made the recommendation to the Dairy Industry Council, which was supposed to carry it into effect. The Dairy Industry Council is then alleged to have compromised at 1.47 d, and the .'Stabilisation Committee fixed the price at 1.2'1d.” All dairy company directors had expressed keen disappointment at the final figure, which only covered the increased wages costs and hardly gave the farmer himself anything out of it. The Coming Season Speaking of the prospects for the coming season, Mr Courtney said that endeavours had been made to find out if there would be a price increase. Nothing could be ascertained from official sources, but rumour had it in Wellington that the Prime Minister and the Minister of Finance, with officers of the Export Marketing Division, had been negotiating in England for a higher price. Rumour also had it that the increase was to be between 3d and 4d per lb. In the circles in which enquiries were made it could not .be found out whether, if this was received, it would all be passed on to the industry. “In fact all we know,” said Mr Courtney, “is that when Mr Fraser returns, he will make a statement

which will also be simultaneously made in England and Australia. The Dairy Board will be holding a conference op August 14 and we expect to hear something definite then. Information will be passed on to the shareholders. A Wonderful Achievement “It is a pretty wonderful grade and the highest on our record,” commented Mr Courtney in referring to the fact that the company’s average butter grading throughout the year was 93.96. Most of the butter had graded over 94 points and substantia] bonuses have been received. It was a great achievement for the staff and suppliers should thank them wholeheartedly. In conclusion he appealed to all suppliers to increase production in the coming season if possible. Nothing further need/ be said than that there was danger the English ration would be cut below the present two ounces a week. The chairman thanked the shareholders for their consideration, his fellow directors for their co-operation and the staff for their wonderful standard of service.

The balance sheet was adopted on the motion of the chairman and Mr J. J. Fitzgerald, and there was practically no discussion.