CHELTENHAM DAIRY CO.

Manawatu Standard, Volume LX, Issue 225, 21 August 1940, Page 5

CHELTENHAM DAIRY CO.

47th ANNUAL MEETING. The 47th annual meeting of the Click tenham Co-operative Dairy Coy., Ltd., was held last evening, MrC. G. 0. Dermer presiding over a good attendance of shareholders. “Weather conditions for the opening months of the 1939-40 season,” Mr Dernier said in Ills address, “were not favourable for production and our monthly output showed decreases on the previous year’s total until the end

of January. This experierfeO was in common with other parts of the Dominion. For the seven months to January 31 our output was IG4 tons less than in the corresponding period of the previous year, Plentiful rainfalls in February and March brought about ideal conditions lor dairying, and # this was in striking contrast to the same months in 1959 when drought conditions were experienced, and in the remaining months of the season we not only- picked up the decrease of 164

tons but finisned up 101 tons ahead of the previous year’s output. Monthly advances were made on the basis of Is 2d finest grade, and averaged 13.931 d per lb over all grades. The further payment of 2.3202 d per lb is to be paid out on the full season’s supply of butterfat, making a total payment for the season of 16.2512 d per lb (slightly over 16 4!,d) and. to which there is to bo added the dividend on sliaro capital equal to ,0464 d per lb butterfat. In view,of tho upward trend of prices for some of the manufacturing materials, the fact of this season’s payment being equal to last year’s is a matter for congratulation. The balance available this year ior final payment is £37,599, being £153-4 higher than tho amount paid out last year. “Lt will be seen,” Mr Dermer continued, “that the return for buttermilk supplied to the pig farm was £314 Is 3d, and of this amount the sum of £llO 17s lid has been included in the amount for distribution. On account of tho drought of the preceding season, followed by a very wet and cold winter, the conditions at the early part ol the season were extremely difficult for pig farming, it being found necessary to purchase a large quantity of meal in the early spring months, while farrowing results were far from satisfactory. Knowing that these circumstances had existed, it was not expected that the net profit from the farm would be

quite as good as in former years. “The average grade of the company’s butter exported, this season was 94.010 points, which is slightly lower than last year’s average of 94.155 points. For all butter scoring 94 points and over, there is a premium of oneeighth of a penny per lb in the guaranteed price payment. It will be seen, therefore, that the company’s average of 94.010 points has secured this premium on a large percentage of its exported butter. Actually 82.7 per cent, of the butter exported was graded 94 and over. Quality is still as important as ever; in tho guaranteed price we are paid according to quality and it is therefore more than ever necessary to manufacture a high grading butter. This is where suppliers can help themselves, co-operate wholeheartedly by supplying the factory with nothing but the best quality cream and the staff at the factory can then do their part in manufacturing a high-scoring butter. COMPARISON OF COSTS. “At the commencement of the 193940 season, the directors set up a committee to make a thorough examination of all costs from farm to f.o.b. An investigation of every avenue ot expenditure was made, with the result that, coupled with increased production during the fall of the season, our costs are slightlv lower than in the previous vear, notwithstanding many unavoidable increases in factory requisites, benzine, storage, etc. The main items of costs for the two years at per lb

butterfat were: Cream collection: 1938-39, ,4155 d; 1939-40., .4148 d; decrease, - ,0007 d. Manufacturing charges: 1938-39, 1.0403 d: 1939-40, ,9755 d; decrease, .0648 d. Depreciation: 1938-39, .0802(1; 1939-40, ,0721 d; decrease, 0081 d. Repairs and maintenance: 1938-39, .0505 d; 1939-40, ,0338 d; decrease, ,0167 d. Charges factory, f.0.b.: 1938-39, ,3130 d; 1939-40, ,3583 d; increase, ,0453 d. Overhead charges: 193839, ,1817 d; 1939-40, .1718 d; decrease, ,0099 d. “I feel sure no further savings in costs can he looked for, unless by largely increased output; and that any further increases in cost must be carried by the producers. For the coming season definite increases in the following items have been announced: —(1) General order 5 per cent, increase in wages, estimated increase in cream collection costs, manufacturing account, £450; (2) butter boxes recently, increased in price by Id per box (new price is Is Hid in shooks), estimated increase to the company, £300; w; The price of petrol was raised m different stages during the season; in all, there was a rise of 7d per gallon; sucli rise will apply to the full season in the coming year, tho estimated increase to the company will be £l5O, total increase on these three items, £9OO ” . Mr Dermer went on to say that further rises in the price of petrol were probable and if these occurred producers would have to carry them. He wont on to deal with the insurance and proposals for the engagement of a veterinary surgeon. The directors had brought down a detailed plan for the latter, but suppliers had, by vote, decided against the proposal. Referring to the Cow Testing Association the chairman said that the support accorded last season was worse ;t van disappointing and apparently shareholders preferred the group testing system. Regarding the dividend of 3 per cent, on share capital, amounting to £733, the shareholders could decide whether a dividend should be paid or otherwise next year. He pointed out that to pay the dividend the company had had to make provision for £212 in taxes. Mr Dermer concluded by thanking the directors, the secretary, majuager and staff for t-heir coioperation. Mr E. Sinclair briefly outlined the activities on the pig farm and paid a tribute to, the work of Air H. E. Thurston (formerly manager) over the past 13 years. Regarding the lower output of the farm, he said the farm could deal with another 1000 tons of buttermilk. To suit the purposes of the company. lie considered that a policy of breeding pigs should be supported. He was also satisfied that the showing of pigs at A. and P. 6hows was a good scheme.

Air Thevenard moved a resolution that tho whole of tho company’s exportable output of pigs be sold to the co-operative movement. Opinions were advanced by several speakers who were unanimously agreed tha.t the company should suxiport a cooperative organisation. The chairman 6aid the matter was one which should be left to tlie farm committee, but be agreed that the co-operative organisation should receive patronage though he did not thing that the whole output should be sold to one firm. Air Bickers felt that the farm manager should be instructed to compete i.u show rings in the district; otherwise 'the company could not get a line on its quality of breeding. Air Thevenard’s motion was lost by 36 votes to 18. A recommendation was passed that no dividend be paid next year. The report and balance-sheet were then adopted. Messrs Dermer and N. C. Jensen, the retiring directors, thanked the shareholders for their re-election unopposed. Alessrs S. At. Hobbs and R. Davis were reappointed auditors. The directors’ fees and expenses were fixed at the same rate as last year’s. The meeting recommended that the

cow testing subsidy be increased to Is. On the motion of Mr J. K. Hamilton, seconded by Mr Jensen, the office and factory executives and staffs were thanked for their services. Messrs Dermer, McDonald and Scott returned thanks on behalf of the respective departments.