LARGE DEFERRED PAYMENT TO BE MADE

Manawatu Times, Volume 63, Issue 184, 6 August 1938, Page 3

LARGE DEFERRED PAYMENT TO BE MADE

£44,600 for Distribution

CHELTENHAM DAIRY COMPANY’ANNUAL REPORT

A deferred payment of £44,65.1 for the past dairy season is to be made by tho Cheltenham Co-operative Dairy Company to its 900-odd suppliers following the annual meeting to bo held this month. Including this deterred payment suppliers will have received for the past dairy season just over aquarter of a million for their butterfat, a pay-out equal to just over 15d per lb. The 45th annual report of tho company states: —

The quantity of butter manufactured was 21t>3 tons, 19cwt., 93ifis., being a decrease of 361 tons, scwt., 63ibs., on the previous season's output. This decrease is in common witn tho general decline in production of butteixat or. the west coast of this island, being due primarily to the exceptionally dry season and in some measure to a changing over from dairying to sheep-farming. The average butter grade has been wen maintained at 94.1U5 points; this is gratifying in view of the difficulties experienced on the farms and in the factory during the prolonged hot weather.

Deferred payment—Season 1937-38. There is a balance of £44,651 11s 9d available for distribution. It has been decided to make distribution of the above amount in the following manner:—(l) To make further payment on or about August 20th, 1938, of 22-3 d per lb. on the full season's supply oJ butterfat, covered by shares, £43,926 11s 9d; (2) to recommend a dividend of 3 per cent, on all share capital paid up as at -30th June, 1938, £725; total, £44,651 11s 9d. Butterfat payment.—The average advance made to the company's suppliers was 12.396 d per lb. over all grades, and the above-mentioned further payment of 2.665 d (22-3 d) per lb. will bring the season’s average up to 15.061 d per lb. The amount of £725 for dividend on share capital is equivalent to .044 d per lb. on the season's butterfat. The payments are summarised as follows: Monthly advance payments, £204,354 4s 7d (12.396 d per lb. butteriat); deferred payment, £43,926 11s 9d (2.665dj; dividend on share capital, £725 (.044d); total payments, £249,U05 16s 4d (15.105 d per 10. butterfat). The average payment for butterfat for tho previous season was 13.6428 d per lb. (estimated 13.6501 d). The butter stocks at June 30, 1938, havo been valued, according to grade, at the Government's guaranteed price for the season's produce calculated on the basic price of 13.66 d per lb. f.o.b. The additional payment from the Primary Products Marketing Department of .41d per lb. on butter manufactured from August 1, 1937, has been taken into account and is included in the value of butter sales in tho manufacturing and marketing account. A nett profit of £VJ6 9s was earned by the pig farm and this amount has been brought into the appropriation account for distribution.

A subsidy of 9d per cow has been allowed by the company to suppliers who tested their cows with, the Cheltenham Cow Testing Association or with the Manawatu xxerd Testing' Association. 1455 cows were tested with the Cheltenham Cow Testing Association. Tho cost of running this system was 2s per cow tested, ana memoers have been deoited with the difference of Is 3d per cow tested.

Under the provisions of the Articles oi Association Messrs. J. \v. Batcheiar and E. feinclair retire this year. The following nominations have been received lor the two vacancies—Messrs. J. W. Batcheiar, R. C. Hamilton and E. Sinclair.

Tho following statistics relating to the company's operations are of interest, those for the previous season being given in parentheses’:—Pay-out previous year per pound butterfat, (13.6425 d); pay-out current year pei pound butterfat, advance 12.398 d. estimated surplus 2.665 d; number of suppliers, 934 (969); pounds of cream received, 9,983,384 (11,630,300); pounds of butterfat received, 3,956,369 (4,626,104); average cream tests, 39.63 per cent. (39.78 per cent.); pounds creamery butter made, 4,824,941 (5,634,204); over-run, 21.953 per cent. (21.793 per cent.); average grade of butter, 94.105 (94.253); cream grade percentages, finest 85.78 per cent. (58.05 per cent.), first 12.86 (11-37), second 1.36 (.58); total charges up to f.o.b. at per pound butterfat, 1.9327 d (1.7819 d).