DAIRYING YEAR.

Manawatu Standard, Volume LX, Issue 216, 10 August 1940, Page 12

DAIRYING YEAR.

MANAWATU-REIJANCE COMPANY. Activities during the year were reviewed by the chairman of directors (Mr R. C. Moore) at the annual mooting of shareholders of the Manawatu-Heliunce Co-opera-tive Dairy Coy., Ltd., hold at ltangiotu last night. , . . “The British Government has asked for. tho production of at least 15,000 tone more cheese ibis season,” said Mr Moore. “If we get our anticipated supply our production will be nearly doubled, and this will cause a reduction in Our indirect costs, to our mutual benefit. Wo shall have to spend between £250 and £350 on extra plant to handle this increase, but we shall have no difficulty once we arc assured of the supJ Commenting on the report and balancesheet tho chairman pointed out that taking tho liabilities side of the balance-sheet, the subscribed and paid-up capital remained unchanged. Sundry creditors at £244 19s 9d which included provision for directors fees, accrued interest and storage on cheese in cool store, showed a decrease of £7l 3s 7d from last year. The No. 1 account at the bank had‘been reduced by £IOO, and if they did not purchase further plant to meet the increased demand for cheese, it would bo reduced by a further £l5O. representing the depreciation for tho year just ended. The No. 3 account was in debit by £124 0s lid, the increase being caused by having more cheese in cool store The bad debts reserve now stood at £lsl 15s 4d and was ample to cover any loss under this heading. Shares reserves had been increased by £37 13s lid, being rebates on storage and purchases. “The fixed assets are practically the same as la,-it year,” said the chairman, dealing with the assets side, “except that £l5O has been taken off for depreciation. During the year the Co-operative, Dairy Producers Freezing Co., Ltd. made a call of 10s on our 120 shares and these now stand at £36J. This call was paid, partly by rebates on storage and partly by cash. During the vear suppliers’ loan accounts were reduced iiv m 3 8s Id and interest has been paid up to date. They now total £193 17s 7d. Stocks have been valued at cost. The increase is caused bv receiving this season’s requisites some months before they usually n-et them on account of the war.. Cheese abo shows a large increase and is due to having a larger quantity in cool store at the end of the season. Production at 175 tons lewt 3or shows an increase of 10 tons 12cwt lqr 241 h. Manufacturing costs show a slight,’ increase of .051 d per pound butterfat. but a comparison of the detailed figures shows that manufacturing charges and repairs and mainlcnanco account for -142 d, caused by the increased cost of reouisites. The cost of the, smoke stack (£3O) accounts for the difference in the repairs pntl maintenance account. The other costs «liow a reduction of .09ld, which leaves a difference of .051 d mentioned before. The following figures show the variation , in manufacturing costs ncr cwt to f.o.b. since 1934 (when calculating these c.ceAs depreciation has been omitted as this item is of a fixed nature and does not vary with the tonnage) : Season 1933-34, 11s lid per cwt: 1934-35, 12s 8d per cwt; 1935-35. 13s 4d per cwt; 1936-37. 13= 8d nor cwt; 1937-38, 14s 4d per cwt; 1939-40, 14s lid per cwt. From these figures it would bo seen that if allowance is made for depreciation and interest, which are large for such a small supply, costs are comparable with any factory and if the yield could be raised the payout would be much closer to our eomnetifors.” The thanks of the shareholders were expressed to the manager (Mr H. Chapman) and his staff, and to the secretary; (Mr

A. E. Manslonl) for the manner in which they had looked after the interests of the company. Mr Moore also expressed thanks to members of the directorate for their co-operation and support. The recommendation of the directors for a further payment of 2d a lb on butterfat, making Is 5d for the year, was agreed to. Messrs E. L. Russell, 1). G. Moore and 11. W. Alve, the retiring directors, wore re-elected. Air R. Davis was re-elected auditor. Mr Moore was rc-eleetcd chairman at a' subsequent meeting of directors.