Quality Major Factor In Keeping Overseas Market

Northern Advocate, 21 July 1949, Page 9

Quality Major Factor In Keeping Overseas Market

MAUNGATUROTO DAIRY CO

MAUNGATUROTO, Thu. (0.C.). —“It cannot be too strongly stressed that quality will play a major part in the retention bf a favourable market for our product overseas during the years, that lie ahead.” ' •

Mr D. A. Finlay son (Maungaturoto), chairman of directors of the Maungaturoto Cooperative Dairy Company, Ltd., stated this in his annual report presented at yesterday’s annual meeting of shareholders at Maungaturoto. ’ : ‘ : 1 ’

Mr Finlayson was referring to the pleasing improvement in the quality of butter produced by the company’s factory

creases experienced by other companies. • .

“The grading figures for our produce have been very satisfactory,” he said.

“It is gratifying that our company secured third place in the Weddel Cup competition. “Considering the size of our output and the fact that no culling of low grade cream is done in the factory it was a very creditable achievement upon which not only the manager and staff should be congratulated, but also the farmers who supplied the cream.

“It is clear that there will be a ready market for our produce for some years to come, provided wo are able to sell at a price that the consuming public in England can' afford to 'pay.

“We must strive to do even better next year and win the coveted, cup. “The output of butter, which has been increasing steadily over the years, reached the record figure of 2311 tons 9cwt, an increase of 141 tons, or 7 per cent. “Climatic conditions were mainly responsible. ‘The year has been an extremely difficult one as regards availability of adequate and efficient staff for both the factory and the garage and stores department. “The latter department, in particular, has passed through a most trying time.

“There are deflnltee' indications that a switch from a 'seller’s to a buyer’s market is now taking place. “In these circumstances the Importance of maintaining a high standard of quality in cur produce cannot ba overestimated. ' “Costs will have to be reduced at the earliest possible date to ensure that the price we receive from overseas will not only cover them; but will also provide an incentive for the farmer to bring In new areas of land and thus permanently increase production.

“It is a matter of great regret t 6 your board that Mr E.-E,- Brown has found it necessary to announce his permanent retirement from the board of directors. - " ‘

“Unfortunately, this problem is still acute throughout the dairy industry. “Delivery from England of the buttermilk drying plant we have installed was unfortunately delayed very considerably. “This resulted in our being unable to commence manufacturing buttermilk powder until the latter part of the seaison.

“One set of drying rollers was put into operation, on a temporary basis only, during April.

DRIED MILK PLANT “As the auxiliaries for this unit were not to hand, its operation was most difficult and inconvenient, and would certainly not have been undertaken had conditions in regard to disposal of buttermilk been normal. “A second set of drying rollers, togethf'’- with 'he auxiliaries for both it and the set already in operation, ha.e now come to hand.

“The permanent installation of both these units, and a new boiler, is under way.

“It is anticipated that the complete plant will be in operation during the early part of the coming season. “A net profit of £147 resulted from the drying operations during the last six weeks of the season under review. “This has been carried to the credit of the buttermilk appropriation account, and will be used to assist in liquidating the cost of the new plant. “The thanks of the company are due to Mr Hailigan (factory manager) and his staff for the excellent job they did in manufacturing this powder under adverse conditions and circumstances. “The balance-sheet is highly satisfactory. FIGURES NOT BOOSTED “The payout of 27.3201(1 per lb butterl'at has not been boosted from any source other than legitimate butterfat returns. “This cannot be claimed by all dairy companies in regard to their published payout figures. “Fixed assets have increased during the vear bv rmoto and the finance ■ ' ■ i '■;> I ’■ i:"• .-/.-no; is sound. “Costs to f.o.b. show an increase of .133 d a lb butterfat over (he previous year, comparing favourably with in-

“During the whole of Ills time On the board he has given of his best in the interests of the company,”'Mr "Finlayson concluded. r • ■ '