RIVERBANK FACTORY

Manawatu Times, Volume 63, Issue 212, 8 September 1938, Page 4

RIVERBANK FACTORY

Satisfactory Year Reviewed DISCUSSION ON HIGHER COSTS At the annual general meeting of shareholders of the Riverbank Co-opera-tive Dairy Co., Ltd., held at Ngawapurua yesterday, the chairman of directors, Mr. J. Hanaray, presided over n very good attendance. The following report was adopted with the balance-sheet on the motion of the chairman and Mr. C. B. Morgan. 11 The company has had a satisfactory year with an output of 429 tons of cheese, a decrease of 25 tons on last season’s output, this being chiefly due to the dry weather of last summer. Our produce has again been handled by the Government and the guaranteed price for next season is still under consideration by a committee of representatives from both the producers and the Government. The amount of unshipped cheese at the end of the company’s year waß 913 crates and these have been valued at the guaranteed price. In respect of the season 1937-38 unsold cheese at the grading stores in Wellington has been valued at the guaranteed price after allowing for charges. The season’s average advance per lb. of butterfat has been 11.997 pence and it is proposed to make a further payment of pence which will bring the total . amount to Is 34d for the season. The _ directors recommend that no interest be , paid on share capital and that the balance of £5943 2s 5d in the manufac- * turing and marketing account be dis posed of as follows: Further payment 3Jd per lb. on all butterfat supplied (403,636.901b5.), £SBS6 3a lid; cany forward, £SO 18s Gd; total, £5943 2s sd. | Tho retiring directors are Messrs. A. W. j Corpe, F. W. G. Knapp and J. II t McPeak, and being eligible oiler them selves for re-election, as do tho audit- | ors, Messrs. Dempsey and Litchfield F.P.A. (N.Z.).’’ Factory statistics, with those for the previous season given in parentheses, were as follow: Payout per lb. ot butterfat (previous season’s average) 14.55 d (12.997 d); payout current year advance 11.997 d, estimated surplus 3.533 d (11.037 d and 2.GGOd); number of suppliers, 35 (3G); pounds of milk re ceivcd, 8,922,7261b5. (9,149,5181b5.); pounds of butterfat, 390,328.98 (400,350); average test., 4.3745 (4.37); total charges including repairs and depreciation up to f.o.b. at per lb. of butterfat, 3.560 (3.378); pounds of cheese (factory weight, 429 tons, scwt., lqr., 91bs.) 961,557 (1,020,699); pounds of milk to make lib. cheese, 9.2794 (8.9605), pounds of cheese made from lib. butterfat, 2.4G345 (2.5495); average grade per crate of cheese, 91.74 points (91.8 G), milk grade percentages, first 99.49 (99.842), second .51 per cent. (.158); pounds of butterfat in cream sold. 13,307.92 (14,878). Moving the adoption, the chairman made no comment, saying “It is best to leave it to the shareholders. It is their ’ ’ Discussing tho balance-sheet, Mr. G C. Izakson asked for an explanation of the doubling of the charge for repairs and maintenance in tho past year or two over the amounts similarly charged just before the rebuilding of the factory. He said the shareholders were given to understand that the rebuilding would reduce these charges substantially. In reply tho chairman stated that a new vat was the biggest item and h 3 explained that when tho factory was rebuilt only one of the old vats could bo used. The cost of the vat, ho added, was about £7l, but it should last 20 to 30 years. Another new vat, he said, would have to bo bought this year. A further amount of £62 odd he also explained as an account from an engineering firm for boiler work and reboring, again in tho old factory. Tho chairman submitted that the repairs and maintenance bill was very reasonable. Mr. C. B. Morgan stated that they rould be smaller in future. A voice: I hope so. | Mr. C. Judd questioned the high amount for materials but it was explained that tho fall in production last season could not be foreseen so the materials overstocked would be used this year instead. Messrs. Judd and Izakson also enquired about several other details on the balance-sheet. Increased Costs. Mr. A. W. Corpe produced figures of the fuel cost per ton of output which was last year, ho said, 16s Sd, compared with 16s Gd the previous season. Some years ago, he added, it was over £l. lie selected a year when butterfat made Is Gd for comparison with present-day conditions. Then, he said, tho cost of placing £1 worth ot! cheese before the public was 3s 6d and tho other 16s Gd was payout; now, tho cost, up to f.o.b. only, was 3s 8d in tho £. The comparative list of costs and payouts of district factories published on Tuesday incited a number of questions. Tho chairman remarked that apart from depreciation and interest the costs of the Riverbank factory compared very favourably with other concerns. The Directorate. As there were no other nominations the three retiring directors were reelected unopposed. Returning thanks for the continued support of the shareholders, Mr, A. W. Corpo said he would continue to make the company’s business, his business as he had always done. Mr. F. W. G. Knapp said he would