DAIRY INDUSTRY

Manawatu Standard, Volume LV, Issue 226, 22 August 1935, Page 8

DAIRY INDUSTRY

IvAIRANGA COAIPANY

SUPPLIERS’ ANNUAL MEETING

The 28tlr annual meeting of the Kailauga Dairy Company was held this afternoon, Air J. Devine (chairman of directors) presiding. 'The chairman’s report, given on behalf of the hoard of directors, was as follows: —“Tlie season commenced favourably, hut production was checked hv very dry weather in the summer, and although the autumn was good the output shows a considerable decrease. The quality of our produce has been good, but we must continue to maintain a high standard. Competition in the world’s markets is becoming more intense each year, and it can be noticed that quality undoubtedly rules prices. The affairs of the company must be regarded as gratifying. and the finances are in a healthy condition. The nett profit in the trading department compares very favourably with that of previous years, and it is pleasing to note that the turnover shows a marked increase, being the highest for a period of six years.

“The balances for appropriation are as follow: —Factory account, £16,358 2s 2d; store account, £938 os 9d. Tire average of advances made are: Butter, 7.9089 d; cheese, 8.3894 d. The directors recommend that the balances be disposed of as follow: — (1) In making a further payment of 2 1-lGd per lb. fat on all supply received during the year for buttermaking; (2) in making a further payment of Id per lb. fat on all supply received during the cheese-making season; (3) in making of a 5 p.c. dividend on paid-up capital; (4) in making of a 4 p.c. rebate on all store purchases; (5) in making the usual allowances for depreciation of buildings and machinery. The payment above mentioned (on blitter fat only) will bring the factory advance to: Butter suppliers, 9.971 d and milk suppliers, 9.494 d. Large quantities of produce are unsold. These have been valued on a conservative basis and in the event of realisations exceeding estimates the directors will authorise further payments as has been done in the last few years. The practice of valuing the unsold produce at high figures with a view to inflating the final payment seems to us absurd. The thanks of the shareholders are due to the management and staff for their endeavours in the interests of the company. The ctirectors retring by. rotation are Messrs D. Buchanan. M. H. Burmcister. F. Judd, J. Kyle and B. B. Zurclrer. They are eligible and offer themselves for re-election. Mr W. Hunter, auditor, retires and offers himself for reappointh meat. “Statistics. —Total quantity of bnv-terfa-t received, 1,931,0031 b.; total quantity of butterfnt. Longburn. 188,9001 b.. Kairanga, 253.0961 b., Fitzherb°rt. 185,1921 b.; total cream fat, 1,303 8151 b.; average test, Longburn. 4.383 per cent., Kairanga 4.732 per cent., Fitzherbert. 4.561 per cent., cream, 37.90 per cent.; produce manufactured, cheese. 606 tons 15 cwt 3 qrs. butter, 742 tons 8 cwt. 1 qr., whev. 90 tons 16 cwt. 1 qr.’’ EXTRA BONUS MENTIONED.

In moving the adoption of the report, which was taken as read, the chairman said that the companv had again enjoyed a good season, although production was down owing to the weather —not because of loss of supply. The speaker proceeded to review th-3 prices of last season month by month, and said that the market was now steadily rising, which was better than sudden changes. The cheese market was very difficult to understand when it was remembered that production was 11,000 tons down for the Dominion. There had been reports made as to the effect of English cheese on the market, but the demand now seemed to be improving. Although the factory’s production of cheese for the season was down a little, it had to be remembered that the previous season had been a record one. The cheese grading had been: —Kairanga 91.73, Longburn 91.41, Fitzherbert 91.68. The company had been faced with the expenditure of £1660 for factory alterations and over £7OO had been spent on a new churn. Altogether, the alterations would cost about £3OOO, which figure would include a new chilling room. The store account again showed that the store was a good investment for the company. A bonus of 4 per cent, was to be paid on all purchases. The speaker pawl a tribute to the work of the secretary (Mr C. \ Hyde) who had been in office only for that year. The average f.o.b. price fur butter had been 8.94 d and the local price 10.27 d per pound. That difference was largely accounted tor bv the fact that he had been able to secure a distributing firm’s business in Wellington for the best portion of the season. The f.o.b. price of cheese had been 4.77 d and the local price 5.56 d. The company had quite a good cheese trade in Wellington now. The amount of butter unsold at June 30 when the books had been closed had been 130 tons, and the amount of cheese 212 tons. He would be very disappointed if an extra bonus was not paid on both butter and cheese supl>1 Replving to a question, the chairman said the directors had not yet given consideration to when the manufacture of cheese should be commenced. If they thought that a change to cheese was worth while its manufacture would be commenced immediately. Mr A. H. Ferguson asked if cream cans were now to be charged for. Jho Kairanga company and the New Zealand Dairy Union had been the only ones allowing free cans and it was recognised that it was an unfair practice when the cheese suppliers had to buy their own. The report was then adopted.