DAIRY INDUSTRY

Manawatu Standard, Volume LVIII, Issue 227, 24 August 1938, Page 10

DAIRY INDUSTRY

FARMERS’ DAIRY UNION. MEETING OF SHAREHOLDERS. The annual meeting of shareholders of the New Zealand Farmers’ Dairy Union was held to-day, Mr J. A. Nash (chairman of directors) presiding over an attendance of over thirty . In moving the adoption of the report (already published) and balance-sheet, the chairman said that the latter gave in detail the business of the company for the past year, ."bowing a large decrease in the output. This, apart from the season which affected the output of most companies, had been largely brought about through the Executive Commission bringing zoning into operation in the Ballatice district where the company had a splendid supply. “I reported to you last year,” Mr Nash. continued, “that zoning was to come into operation this year, but so far this has not been carried out, perhaps on account of this being election year. However, we do know that this company has had to face up to the position to a certain degree. The average pay-out over all grades this season is 14.926 d, compared with 13.56 d last season. The Government has not so far decided what the guaranteed price will he for this season; but we must remember that the Government’s Dairy Account is in debt and, possibly, if any surplus is availahie for this year this debit will be paid off. You will notice that the grades were down for the year. This is accounted for owing to the season, which was anything but satisfactory. Wages, material and fuel have all advanced, and will _no doubt be well understood by suppliers who also have increased costs. Unfortunately you get this in two ways—on your farms and in the manufacture of your products. LOCAL MARKETING.

“I want now to make a brief reference to the circular sent you on behalf of this and other companies, To-day the Government takes your butter on an equalisation basis. That is to say all factories should receive the same price, and we maintain that the same should apply to local sales. When the Dairy Produce Association was in operation we all received a share in local sales, whether we patted or exported the butter. One company has the bulk of' the local trade. I understand they do not export between the end of May and September. We, with other companies, export through the winter months; consequently we are faced with additional costs such as railage, difference in cost of boxes, putting f.o.b. and so om which means a handicap of at least id per 1b.,” Mr Nash said. “We have had several deputations to the Minister. So far we have not been successful, but he has asked for balance-sheets from all companies and we anticipate that something will be done. However, tile matter is one that affects suppliers, hence our reason for sending out a joint circular, and you may be sure we shall continue . fighting for your interests.” With reference to vacuum packed butter, Mr Nash said the London company which had had so much opposition found it necessary to liquidate and a new company had been formed with strong financial backing. Pat butter had been sent through the Government, who paid here and divided profits with the company. This also applied to butter in 71b tins for the Board of Trade. This showed a email increase on the guaranteed price. Cream had been quite satisfactory and had it not been lor the difficulties of the original, London company a large sale would have been made. Already the new company wanted a quotation for cream and 71b tins of butter. They anticipate good sales but they could do nothing until the guaranteed price was fixed by the Government. It was gratifying to k#ow that they had never had a complaint about the cream, the quality being quite satisfactory. If they got a good run this year it must prove a good asset to the company. “Tjie question of a universal payout for the coming -ear will no doubt be decided at a meeting of factories in the district,” the chairman said. “The directors are making every endeavour to reduce costs this year and already substantial reductions have been made. I want to express my thanks to our executive officer (Mr G. N. Hawken) for his v'ork as secretary and to our manager (Mr H. G. Mills) for the interest lie takes in the factory and suppliers, also to the staff generally. I desire to thank the directors for all their help and co-operation in the management of the company’s affairs, also you gentlemen for your loyalty to the Dairy Union,”

The motion for the adoption of the report was seconded by Air P. T. Jamieson, who commented on the balancesheet. He remarked that tho costs per pound of butterfat had shown a rise over those of last year. The costs were high, and he wished to see the company improve. The chairman said wages had risen. Office expenses could not be reduced by an amount that had been suggested. Only those in very close contact with the company’s affairs could understand fully what the position in some avenues was, and opinions from persons in tho city could not always be airplied. Air Jamieson explained that he had been aggrieved about a certain matter previously, but recognised now that the directors’ decision was correct. He had no grievance against the company. Alessrs Nash and J. A. Woodley, the only nominees for two vacancies on tlie directorate, w 7 ere declared elected. Air D. G. Glendinning was reappointed auditor at the same remuneration as last year. Air Jamieson moved that the directors’ fees bo £1 Is a meeting, with 0,60 f or the chairman’s honorarium. Mr P. TO. Pedersen seconded the motion, which was carried.

A suggestion that the company donate fid per ton of butter manufactured to the compensated price campaign was placed before the meeting in a letter. On the motion of Air Jamieson, seconded hv Air G. T. Lowe, it' was decided to take no action. The. New Zealand Institute for the Blind forwarded a request that the company make a donation to the institute of Is per simplier. on the same lines as action taken bv the Taihape Dairy Company. The chairman said tho cost would he about £22 10s. It was decided to make a donation of £lO the mover of the motion being Air G. T. Gretton and the seconder Air B. R. Bockett. On the motion of Mr Lowe, seconded l>y Air A. K. Greves a vote of thanks wan accorded the chairman, the secretarv (Mr Hawken) and the manager (Air Mills) and their staffs for their services in the past year, the chairman replying.