DAIRY INDUSTRY

Manawatu Times, Volume LIV, Issue 6991, 17 August 1929, Page 3

DAIRY INDUSTRY

Cheltenham Company’s Progress The progress of the Cheltenham Coop. Dairy Coy. during the past season is recorded in. the report of the directors to be submitted to the annual meeting of shareholders. The report states: It is gratifying to report that conditions throughout the year have been favourable for dairy farming, particularly in regard to production, which, according to the factory’s output, shows an increase of 218 tons 4ewt 91bs over the previous season. Prices, also have been satisfactory although the bright prospects existing in the early part of the season failed to materialise at the latter end of the year, with the result that the market was more favourable to "selling” factories than to "consigning” factories. There is a surplus of £19,903 11s 9d available for distribution and the directors propose that this amount be dealt with in the following manner: (1) To pay a dividend of 5 por cent, per annum on all share capital paid up as at 30th June, 1929, £1095 15s 3d. (2) —(a) To make a further payment of id per lb on March supply of butterfat and (b) to make a final payment of 1 l-8d per lb on the season’s supply of butterfat, £18,417 11s lOd. (3) To pay a bonus to the company’s general employees of 5 per cent, on their wages, £359 14s lOd. (4) To carry forward the balance of £3O 9s lOd. The average advance made against butterfat during the season is Is 5.56 d per lb; the proposed further payment of id per lb on March supply will bring the average advance up to Is 5.5-8 d per lb; and the final payment of 1 l-8d (a penny and one-eighth) on the season’s supply will make a total payment of Is 6J-d per lb on butterfat qualified for shareholders’ rates in addition to which the usual dividend of 5 per cent, on share capital will be paid. The bonus and dividend cheques will be paid as soon as possible after the annual meeting. Depreciation has been allowed for on the following basis: On buildings and factory plant, 5 per cent, on book values; motor lorries, 15s per cent, on original cost; pig farm plant and improvements, 10 per cent, on cost.

Pig Farm. After making allowances for depreciation, interest on capital invested, and other overhead expenses, the pig farm has returned a net profit of £2Ol 2s 6d. The pork and bacon market was not as satisfactory as it might have been during the season and, taking this fact into consideration on last year’s workings, there is every cause to believe that the company’s pi.g farm will continue making a fair profit in the future, whilst at the same time serving a useful purpose in disposing of a waste product of the factory.

Operating Costs. It •will be noted that a further reduction has been effected in all costs, the reduction as compared with last season being £1 1 ?B<l per ton of butter from farm to f.o.b. In order to maintain the quality of butter, it has been found necessary to raise the roof of the front portion of the factory buildings and also to install modern cream vats and other up to date machinery, yheee additions have been carried out

by day labour with the tory staff. As these are mainly in the nature of capital /expenditure, tho cost thereof vraKpo|§ be charged against the workingji|9r any one particular year. During, thqyear a bore for water was put dijmjpljii- a section adjacent to the factory and a satisfactory flow of water was. obtained at a depth of 397 feet,; within 60 feet of the water is drawn from this Bp.pply.for pa.rt of the factory’s requirements. Owing to the unduly high rates charged to this company by the Man-awatu-Oroua Electric Power Board, the directors have decided to discontinue purchasing electric power from that body. The company has installed its own plant for generating electric power and the exhaust steam is used for heating purposes. By this means a considerable saving in fuel costs has been effected. Boneless Veal. The National Dairy Association’s cooperative scheme, which returned 9s per head for calves collected during the past season, was a success and arrangements have been made to continue this organisation during the current season. Directorate. The retiring directors are Messrs W. B. Paulding and E .Sinclair. Eor the two vacancies, live nominations have been received, namely, Messrs J. \V. Batehelar, W. P. Bickers, W. B. Paulding, T. P. Iwikau and E Sinclair. Voting papers have been issued in accordance with the company’s articles, and the result of the postal ballot will be announced at the annual meeting. Quantities and Averages. Number of suppliers 853, weight of cream received 9,351,797 lbs (4174 tons 18 cwt 21 Lb), Average test of cream 40.73 per cent., quantity of butterfat received 3,809,380 lbs, quantity of butter made, 4,599,061 lbs (2053 tons 3 cwt 51bs), over-run for season 20.73 per cent., average grade of butter 93.73 S points, percentages of cream grades—finest 82.39 per cent., first 16.48 per cent., second 1.13 per cent. Cost Per Lb. Cream collection .307 d, manufacture and packing ,83Sd, transport, storage and grading .261 d, overhead expenses .177 d. Total cost from farm to f.o.b. 1.585 d. 1928-29 cost from farm to f.o.b. at per ton of butter £l4 15s 6d, 1927-28 cost from farm to f.o.b. at per ton butter £ls 17s 2d, reduction in cost at per ton of butter £1 Is Bd. Average cost of cream collection at per lb butterfat .371; average price paid witb dividend and cost of croam collection added Is 7.184 d. Monthly Advances. July Is 7d, August Is 6d, Soptember Is 6d, October Is 54d, November Is old, December Is s*d, January Is 5Jd, February Is 5Jd, March Is 4d, April Is sd, May Is 6d, (all finest), June Is Gd (first). Herd Testing. Total number of cows tested 3122, number of cows tested (in milk 100 days and over) 2711, Association average yield per cow 251.871 b butterfat for 230 days. 38 cows produced under 1001 b butterfat, 209 cows produced under 100/1501b butterfat, 45.7 cows produced under 150/2001b butterfat, 700 cows produced under 200/2501b butterfat, 594 cows produced under 250/3001b butterfat, 433 cows produced under 300/3501b butterfat, 180 cows produced under 350/4001p butterfat., 69.

cows produced under 400/4501h butterfat, 27 cows produced under 450/5001b butterfat, 3 cows produced under 500/ 5501 b butterfat, 1 cow produced under 550/Goolb butterfat. In addition to the above, 704 cows supplying the Makino factory were tested under the Manawatu Herd Testing Association,