Newbury Dairy Coy.

Manawatu Times, Volume 63, Issue 179, 1 August 1938, Page 3

Newbury Dairy Coy.

DIRECTORS’ REPORT In respect of the previous year, 1936- ■ 37, the estimated season pay-out to sup-1 pliers per pound of butterfat (all grades) quoted in the report for that year was 14.076 d. The actual payment was 14.676 d. In respect of the current year, 1937-38, the dairy produce unsold at balance date has been valued on the following basis:—Export cheese: At the guaranteed price for cheese fixed for the 1937-38 season, including tho additional ,21d per pound of cheese. Local trade cheese: Medium cheese, at 74d per pound, loaf and 201 b. cheese, at Sd per pound. It is estimated that a season average pay-out to suppliers per pound of butterfat (all grades) of 16.14.1 d should result from the disposal of unsold dairy produce at the values adopted. The directors report that the finances and other affairs of the company arc in a very sound condition, and that proper provision has been made for depreciation and other known contingencies. It is proposed to pay a dividend of 5 per cent on share capital. The make of cheese for the year amounted to 1351 tons, against approximately 169 tons for the preceding year. This decline in ruako is partly responsible for the increase of costs per pound of butter-fat f.o.b. of from 3.501 dto 3.641 d. Other factors are higher wages, shorter hours, holiday pay and higher costs of materials. The decline in make is attributable to the loss of two suppliers and to tho very unfavourable weather conditions during tho latter half of the season. The directors have pleasure in stating that it is practically assured that there will bo a considerable increase in supply during the coming season. This increaso will bring down the costs ratio and reflect favourably on the pay-out. The average advance for the season has been 13.481 d (just under 13$d), and there remains to the credit of the appropriation account the sum of £1193 14s lOd. Tho directors recommend that a bonus of 2.6 Gd per pound of butterfat bo paid, absorbing about £1366 16s 7d; that a dividend of 5 per cent, be paid on share capital, absorbing £4B 11s, and that £23, representing fully paid shares issued by the Co-operative Dairy Producers’ Freezing Company and by the Dairy Industry Insurance Agency, out of rebates on storage charges and insurance premiums respectively, be transferred to the reserve account. If the above recommendations are approved, there will remain a balance of £55 7s 3d, which the general meeting will be asked to deal with. The directors feel that, considering the adverse circumstances under which the company has worked, the above payout will be favouraby received by tho suppliers. Suppliers will know that when fixing tho export pricc3 for 1937-38 the Government expected teat the rates fixed would enable cheeso companies to pay their suppliers 2d per pound butterfat more than suppliers to butter companies would receive, but it has been found in practice that this objective has not been attained. However, it is understood that the Government, after failing in tho first two seasons of the guaranteed price plan to afford adequate protection to the cheese companies, arc now fully awake to the position and will act accordingly. Messrs. E. W. Collins and J. Linklater, who retire by rotation, offer their services for a further term. The meeting will also be asked to fill the other seat which has been vacant for some /ime. The directors regret to report tbe death early in the year of Mr. W. Hunter, who had been the company’s auditor over a considerable period of years. The vacancy was filled by the appointment of Mr. H. J. Rees. Mr. Rees again offers his services as auditor. The report expresses appreciation of the very good work dono by the factory manager, Mr. W. L. Krivan, who, as usual, has done all possible to further the interests of the company. The services of tho secretary are also much appreciated. Statistics. —The previous season’s figures arc shown in parentheses: Pay-out previous year per lb. butterfat (season average), 14.67 Cd; current year advance 13.481 d; estimated surplus, 2.66 d. Number of suppliers, 13 (15); pounds milk received, 2,790,545 (3,292,854); pounds butterfat from milk, 123,323 (151,968); average butterfat test of milk, 4.41 (4.61); total charges, including repairs and depreciation, up to f.0.b., at per lb of butterfat, 3.641 d (3.351 d). Cheesemaking: Pounds milk, 2,768,429 (3,282,854); pounds of butterfat from milk received over stage for cheesemaking (no deductions for loss in whey) 122,173 (151,509); average butterfat test of milk, 4.41 (4.61;; pounds of cheese, 304,047 (378,244); pounds of milk to make lib cheese, 9.10 (8.70); pounds of cheese to pound of butterfat, 2.488 (2.496); average grade of cheese, 91.72 (91-78). Milk grade averages: First, 98.25 (96.96); second, 1.75 (3.04). Pounds butterfat recovered from whey expressed as a percentage of total butterfat received for cheesemaking, 7.5 (6.8).