DAIRY UNION

Manawatu Standard, Volume LV, Issue 226, 22 August 1935, Page 7

DAIRY UNION

COMPANY’S ANNUAL MEETING.

DIRECTORS RE-ELECTED. The annua] meeting- of the New Zealand Dairy Union was held this morning, Mr J. A. Nash, M.P., presiding over a very good attendance. The chairman extended a cordial welcome to those present and expressed the hope that the members would later take tlie opportunity to inspect the factory. “The past season has been very disappointing as far as our output is concerned. vVe had hoped, with the increased number of suppliers, that our output would have been considerably increased, but the severe drought, not only upset the calculations of our company, but others as well. Notwithstanding that, wo were only down 46 tons,” said Mr Nash in his review of the season. “Our butter grade has l>een quite satislactory and it is further evidence that farm instruction is in the interests of both the suppliers and the factory. The grade was y 3.57; 90.7 of our butter was graded finest and the balance (9.3) first . We made no second grade butter. Our cream grade was 9U.32 finest, 7.57 first, and 2.11 second.

“Many offers were received from buyers during the season, but we omy sold 1000 boxes at 10U. At times it was very tempting to sell, but the policy of the directors in cousigning was the correct one. When closing our books on June 30 we had 270 tons of butter afloat and in cool stores. Our maintenance this year was £702, which was £2Ol less than last year, our general expenses (£842) being a drop of £SOO against 1929-30. The cost of the handling of cream was £6OO less than in 1933-34. Wages were £3210, being £SO more than tlie preceding year, and directors’ fees were £B6. directors’ charges are lower than for any butter factory in the district, showing that the directors are giving service at a minimum cost. Farm instruction cost £B2. The expense per ton of butter was £lO 11s Id, and cream carting per lb of fat .391 d.”

Dealing with the cost account, the chairman gave the following figures: —» Manufacturing .63d per lb; cream carting, .39d; storage, etc., .26d; overhead, .Odd; these making 1.57 d as against 1.48 d last year. “The sole aim of the directors has been for cheaper costs and with tho help of the manager and the secretary this has been accomplished,” he continued. “Our over-run was 21.69, or .52 less than last year. If we obtain u large over-run, then we show a much better result at the end of the season, hut of no benefit to suppliers, because if you take it one way, you give it hack in another, and there is no advantage to suppliers. I might mention that one per cent increase in over-run would mean about £IIUO oil our output. Some factories make a distinction ol id per lb on butterfat as between sfiareholders and non-shareholders. We make no distinction, believing in the policy of one price lor all. As we aic now packing a large quantity of butter in pats, we had to purchase a machine costing about £I6OO. It turns out a hotter pack, gives accurate weight, and has consideraoly reduced tho cost ot packing and will cut and wrap oolb to tho minute. All our machinery is in good order and condition and it will be sometime before we shall have to puichase any new machinery. “In taking in our stocks at tho end of the year, we did not over-estimate the value. Already it has shown an increase and much will depend upon the final results. If there is any appreciable surplus, the suppliers will benefit but at the moment we cannot make any promise. 1 should like to express our appreciation of the services ot tlie secretary, manager, staff, and .our lorry drivers. They are giving excellent service and everything possible is being done to meet tlie requirements and welfare of the suppliers. The directors feel that tlie company is being well served by the staff as a whole, and they deserve our best thanks. The report (as previously published) was adopted with the balance-sheet, the latter showing a substantial credit. Mr P. T. Jamieson congratulated the directors and staff on tlieir splendid year’s results. f Commenting that the chairman ot directors did not receive an lionoraiiuin, Mr E. W. Harrison moved and Mr Walker seconded a motion that the company come into line with many other firms in paying a well-deserved honorarium. An honorarium of £io per annum was decided upon unanimously. Mr Jamieson said lie desued to see the “cuts” in the staff’s salaries restored by half. , , ~ Mr Nash said the directors had decided that, with the shareholders approval, part of the “cut bo restored. Mr N L. Remnant said the excellent work of the employees entitled them to a bonus in addition. Mr R H. Stullard said that only one cut of 10 per cent bad been made and then two years after other films had acted. , . • , It was decided that a bonus be paid to the employees. . , It was also decided to increase the directors’ honoraria from £1 to £- 2s per meeting. , • Mr E. G. Sim, the auditor, in Ins report, congratulated the secretary (Mr G. N. Havvkeu) on the excellent manner in which the books had been kC \lr G H. Mills, the manager, paid a compliment to the suppliers for their efforts during a difficult yeai, and explained the procedure m grad-

111 The retiring directors, Messrs J. A. Nash and J. A. Woodley, who had retired bv rotation, were reflected. The retiring auditor (Mr feim) was also re-appointed.