DAIRY INDUSTRY

Manawatu Standard, Volume LII, Issue 221, 18 August 1932, Page 7

DAIRY INDUSTRY

THE KAIRANGA COMPANY. SUPPLIERS’ ANNUAL AIEETING. YEAR’S ACTIVITIES REVIEWED. Tho annual meeting of suppliers and shareholders of the Kairanga Dairy Company was hold this afternoon. Mr J. Devino (chairman of directors) presided over a largo attendance. “The balance-sheet and accounts reflect the affairs of the company in a manner which I have no doubt will be satisfactory to all suppliers,” commented the chairman in moving the adoption of tho 25th annual report and balance-sheet (already published). “During tho last several years we have made sound and continuous progress, and to-day we must regard tho company as being in an excellent position. “Regular annual reductions have been mado in the bank account and the whole of the building and plant have been well maintained to deal with our produce. Naturally, we have from time to time to make machinery replacements, but these have been only a minor expense. This winter the position in tho butter factory at Longburn gave the directors some concern, and a full investigation was made of tho question of providing greater accommodation. Plans for alterations of an extensive nature were prepared, but after receiving tenders the directors decided that tho cost was too great. MARKET’S BETTER TONE. “The market values for our produce have, during the season under review, been very low, but indeed better than we anticipated at one period. Happily, there is a better tone at present and it would appear that we may look forward to a brighter future immediately. Great things are expected from the Empire Conference at Ottawa, but I believe tho most we can expect is a small tariff against foreign goods. The season locally was particularly poor, and the result is reflected in our output figures. Tho statistics show a small increase over last year, but this is due to a larger number of suppliers. It is pleasing to be able to say that wo have already the promise of a very considerable increase of supply for the coming year. “The quality of all our products has been well maintained. With the exception of cheese I do not think we can look for much further improvement. The cheese problems still remain with us, and urgently require solution if we are to obtain the fullest return for that side of our export trade.’’ REDUCTION OF COSTS. There had been a steady reduction in tho manufacturing costs of butter and cheese, Mr Devino continued. The cost per lb of butterfat for cheese was 2.lid in 1929-30, 2.10 d in 1930-31 and 1.90 din 1931-32, indicating a steady decrease. Similarly, the cost of manufacture of butter per lb of butterfat had been 1.12 in 1929-30, .992 din 1930-31, and .910 din 1931.32. Overhead costs had been reduced from .6Gd per lb of butterfat in 1929-30, to ,50d per lb in 1930-31, but had increased slightly (an infinitesimal fraction) to 1 .old for 1931-32, duo to small costs which would not recur. Statements of wages costs showed that the company’s position was very good compared with that of neighbouring factories, even of considerably greater size.

“The question of cream collection also deserves comment,” proceeded the chairman. “When it is known that tho average cost per 11) of butter fat is l-sd, it will be realised that the question of contract is not worth consideration. In tho north, where the contract system is followed, tho usual rate is -j|d or fjd per lb. “The directors recommend a further payment of 1 I—sd on cheese supply over the year. This is satisfactory, and in the event of prices rising for the unsold cheese a further payment will be made as soon as realisations are available. During the last two years such welcome payments have been made. On butter a further payment of 2d will be made from October 1, anu will bo very pleasing to all concerned. The usual appropriations for dividend, store rebate and depreciation are recommended. This year tho directois, knowing tho urgency of the situation, have decided to pay the bonus on August 20, a month earlier than usual.” GRATIFICATION EXPRESSED. Concluding, tho chairman made eulogistic reference to the services rendered by his fellow directors, the secretary (Air -1. W. Hodden), stole manager (*\lr J. Mahoney) and stall. Mr A. R. Buchanan seconded tho motion, which was carried. Ho expressed gratification at the picigress made by tho company in a difficult period. Great credit was due to the directors and staff. The company, he added, could hold its own with any other. . Figures in the manufacturing account disclosed a credit of £43,199 10s 10d from butter sales, £4047 10s from the value of stocks, and £7066 S® 1 " signments, making a total or iol.oi.i Os lOd, or £53,098 19s lOd, less shipliiim charges of £1214 Is. Credits fiom cheese were £19,123 12s lOd by way of sales, £650 from stocks, and £11,,229 from consignments, making a totnf or £31,002 12s lOd, or £29 /59 1-s Id, less shipping charges. Sales of whey butter, stocks and consignments ac counted for a further £2636 los lOd, or £2075 13s 10d less slopping charges and manufacturing costs. GENERAL.

The company received a letter from p s bank expressing pleasure at the steady progress made, notwithstanding the difficult times through \v Inch the country is passing. It that the satisfactory state ofthe tom pany’s finances as revealed by the bal nnce-sheet was a certain reflection of the care and attention bestoued upon ** There* were seven candidates for five vacancies on the directorate, fitom which Messrs M. H. Burmdstei D. Buchanan, J. Hastings and J. -h-yio retired by rotation. Mr Hastings did not sock re-election. Messrs Binmeister Buclinnan, Kyle, Zimcher tmd F. J. Judd were retUThed'company decided .to place on record its hearty appreciation the Sr^d ld l>r ( iH Hastings, who * reIlk''!' been a serious blow to tho eom--I,aMr Buclianan stated, that the late Air Small had an enviable record or ~- wprvice and must hav r o been pubhc f rv '? e ’ “ d out of pocket on ’"“Stl&lK devoid to «» il?tS Of the eoinpnni »nd to the web of cheese would be started.