SHANNON DAIRY CO.

Manawatu Standard, Volume LVIII, Issue 225, 22 August 1938, Page 5

SHANNON DAIRY CO.

SUPPLIERS’ ANNUAL MEETITNG. LOCAL MARKETING SALES. Satisfaction with the results achieved during the year was expressed by an attendance of nearly one hundred shareholders and suppliers at the annual meeting of the Shannon Co-opera-tive Dairy Co., Ltd., on Saturday, when Mr W. E. Barber (chairman of directors) presided. The chairman stated that the bal-ance-sheet indicated that the company had had a successful year, and its pay-out compared favourably with those of other companies. Strong efforts had been made to give the suppliers the utmost service, and to keep manufacturing costs within reason. The report (already published) was adopted on the motion of the chairman, seconded bv Mr S. Barber. Mr G. H. Stiles stated that the meeting was a very representative one, and it must give great satisfaction to all that the year bad been such a good one. Though the output of other factories in the Manawatu had dropped, in one case to the extent of onethird. the Shannon company had maintained its production. F.o.b. costs to Wellington per pound of butterfjit had been 1.69 d, compared with l.Tld in the previous year, and were among the lowest, in the district. The pay-out for the season had been 15.325 d, but if rebates and transport costs allowed through the store account had been added the figure would have been 15.4 d, easily the best in the district. Mr B. A. Norman pointed out that this year receipts from local sales of butter had increased by £12,439. and those from exported butter by £7694. Had the company freedom in operating on the local market, or was it controlled by the Internal Marketing Department? he asked. The chairman said that the company was under Government control in this direction. It was called upon bv the Director of Internal Marketing to supply each month specific quantities of butter for the local market, and was liaable to a penalty if it refused to do so. Each month a cheque had to be forwarded to the department in Wellington for the amount of the surplus realised over the guaranteed price bv local sales.

Mr G. Barber : Do the companies get any of that back, or does it go into a pool ? The secretary (Mr C. M. Cronquest) pointed out that prior to the present system of Government control this money went into a group pool in the district, and was distributed,- among the companies, based on output, but now it went into a Government fund and was spread over all factories in New Zealand, whether manufacturing entirely for export or not. No factory was allowed to be at an advantage over another so far as local sales were concerned. However, companies supplying direct to retail stores in Palmerston North were allowed to retain the -Id per lb ordinarily paid to Wellington merchants for distribution. Dir G. Barber: But what becomes of tho money ?

Mr Cronquest: It goes into the Dairy Industry Account, to be spread over every factory. Comment was made by Mr L. H. Best that tho grading figures for the year showed the efficiency of the management and directors. The company had done particularly well, after paying £950 off the building account.

BALANCE-SHEET ITEMS. The balance-sheet showed that there was a reserve fund of £3057 5s 3d, and £34,151 5s 3d in the appropriation account. According to the manufacturing account, advances to the suppliers during the season had totalled £145,226 15s 7d. Cream collection bad cost £2217 10s (.1901d per pound of butterfat), wages had accounted for £2592 8s (.2223d); materials £6804 18s Id (.5835d): fuel and power, £1076 16s 4d (.0923d); and sundry charges, £l5O ( 0128 d). An amount of £7Ol 6s 3d had" been allowed for depreciation, and £577 19s lid expended in repairs and maintenance. Cartage and railage had cost £1665 10s 6d, freezing and storage £2279 Is, grading £2Ol 16-s 4d and the Dairy Board levy £252 6s sd. It was pointed out by Mr J. Clirvstall that a very satisfactory feature of tile year’s operations was the fact that the company’s manufacturing costs were the third lowest of fifteen factories whose figures he could quote; most of them were in the Wellington district. He paid a tribute to the services rendered in efficiency of management bv the factory manager (Mr J. Aim), the secretary and store manager (Mr Cronquest), and the staff- These complimentary remarks were endorsed by the chairman and Mr Sitles.

A dividend of G per cent, was declared on paid-un share capital. This will absorb £462, and a recommendation wa.s made, on the motion of Mr A. Seifert, that the directorate consider the payment of 4J per cent, only next vear.

A resolution was carried, on the motion of, Mr Stiles, seconded by Air J. ChrystnJl, that Ihe necessity be urged unon the Minister of Industries and Commerce for the exemption of cooperative dairy companies from the motor spirits price fixation regulations or, failing such exemption, that they be allowed 1 o rebate such profits as might be made thereon to shareholder purchasers. There were six candidates for two vacancies on the directorate, those elected being Messrs AY. Moynihan and C. H. Sn'ers. The vacancies were created by the death of Mr "Waring Taylor and the retirement of Mr AY H Smith. The latter was accorded a vote of appreciation for his services as a director over a period of eleven years.

Messrs H. Tvomber and Sons (Wellington) wore re-appointed auditors at the same remuneration as last year.

Subsequently, Air Barber was reelected chairman of directors for the ensuing year, after being accorded a vote of confidence bv the meeting.