Whangarei Dairy Co.; The Year Reviewed; Pleasing Result

Northern Advocate, 19 August 1938, Page 5

Whangarei Dairy Co.; The Year Reviewed; Pleasing Result

'pHROUGHOUT THE 1937-38 SEASON THE TOTAL PAYOUT OF "THE WHANGAREI CO-OP. DAIRY COMPANY. LTD., AVERAGED IS.Olld. PER LB. BUTTERFAT.

At the annual meeting of suppliers to-day, the chairman, Mr E. S. Tremaine, remarked on the pleasing result of the year’s activities.

Payments included the Primary Pro-' ducts’ Marketing Department’s supplementary payment of .41 d per lb. butter f.0.b., being equal to £d per lb. butterfat, of £10,674 to the suppliers. Decreased Output. The decrease of 318 tons in output for the season had been largely due to the zoning away of 200 tons of butter to neighbouring companies. Also, during March of this year, a dry spell had considerably reduced cream supply. Beneficial rains falling during April had, however, relieved the situation.

Of the year’s total make of butter, 90.64 per cent, (or 95,472 boxes) had I been graded finest, of which 60.83 per cent graded above 94 points, and thus qualifying for the 1/8 per lb. premium —representing a total of £1268/19/5 to the suppliers. First grade had accounted for 5.99 per cent, of the total. Costs to f.o.b. for the past year had been 1.834 d per lb. butterfat, being an increase of .072 d, attributable in the main to reduced output of 318 tons, together with increased manufacturing costs. Buttermilk Powder. “It is pleasing to report in connection with the buttermilk plant installed some 10 years ago, that the sales of powder have been sufficient to meet all running expenses and also to enable the initial cost of £2OOO to be written down to £10,” said Mr Tremaine. “In addition to this, suppliers have received £IOOO in cash. The buttermilk powder is commanding a ready sale for food purposes. By-road Suppliers. “To assist by-road suppliers in lieu of the company’s carting service receiving 1/8 per lb. butterfat for the year just ended, the amount paid was £790/15/7, representing, as it does, about 10/- per 1000 lbs. of fat supplied,” Mr Tremain explained. “About one-third of the suppliers benefit under this heading. The directors reserve the right to contract or, where profitable to the company, to have by-road cream collected by its own lorry.

Butter Market Values. “For the 12 months ended June, 1938, the approximate average price was 120/- per cwt., being about 14/higher than 1936-37,” said' Mr Tremaine, in reviewing London buttermarket values. The highest price received in the past season was 152/-, on November 1. 1937, and the lowest, 107/-, on January 31, 1938. For the previous season, the highest price was 122/-, and the lowest 83/-. “To my mind, the estimated surplus in the Dairy Industry Account will, when the final realisation of the past year’s produce is known, approximate £1,000,000, providing the market values hold,” declared Mr Tremaine. “Prior to the Government taking control of the infernal marketing, the local sales of dairy, produce were fixed on London parity,” went on Mr. Tremaine. “No sound reason has yet been advanced why this policy should hot continue. Had the local sales of butter for the past year been based on London parity in place of on a basis of the guaranteed price, namely, 13.66 d per lb. fixed for export butter, it is estimated at least an additional £200,000 would have accrued 1 in the Dairy Industry Account in the form of a surplus for divison to the producers.”

Appreciation to Pioneers

“At a recent meeting of your board, reference was made to the foresight, energy and co-operation of the pioneer directors of this company, whose efforts laid the foundation of the organisation of which we have reason to be proud today,” continued Mr. Tremaine. “It seems to your board that it would be a fitting act to commemorate the work of those who have gone before us by the establishment of a permanent record. It has been suggested that the record take the form of a tablet bearing the names of the pioneer directors, to be erected at the factory in connection with the installation of electric power shortly to be made, the undertaking to be dedicated to the pioneers.” The following pioneer directors were mentioned: —W. Wakelin, chairman, 1907-1927; W. Crawford, 1907-1934; D. X. McLeod, 1907-1925; J. McLennan, 1907-1936; J. McMillan, 1907-1908; GMcCullough, 1907-1925; R. C. M. Harington, 1907-1908. “I wish to congratulate shareholders on a very satisfactory balance sheet, and one that calls for little comment,” concluded Mr. Tremaine. “The net payment to suppliers in connection with the 2833 tons of butter manufactured totals £325,144. “The balance sheet discloses a very satisfactory state of affairs.

“On behalf of your directors, I wish to record a hearty vote of thanks and appreciation to the staff in all departments for the very efficient manner in which they have discharged their duties, and I also extend my apprecia-

tion of the valued assistance of my co-directors during the past year.” The chairman’s annual report and balance sheet were adopted without comment, the question of a commemoration tablet for the pioneer directors being left in the hands of the board of directors.

North Auckland Farmers’ Co-op. Ltd., shows profit of £4019 for past year, a decrease of £2992. By special arrangement, Reuter’s world service in addition to other special sources of information is used in the compilation of overseas intelligence published in this issue and all rights therein in Austi'alia and New Zealand are reserved.