DAIRY COMPANY'S YEAR.

New Zealand Herald, Volume LXIV, Issue 19712, 11 August 1927, Page 7

DAIRY COMPANY'S YEAR.

NEW ZEALAND CO-OPERATIVE,

CAPITAL EXCEEDS £1,000,000. LARGE ADDITION TO RESERVE. NOTABLE INCREASE IN OUTPUT. [BY TELEGRAPH. OWN COIU&ESPONDEKT.] HAMILTON, Wednesday. Increases of 15J per cent, in the quantity of butter manufactured, and of over 5 2 per cent, in the output of cheese, as compared with the results for the 1925-26 season, are recorded in the annual report of tho New Zealand Co-operative Dairy Company. The annual meeting of shareholders will be held on August 24. The directors' report states that the increase in the output of dairy produce has been gratifying. The impetus given to production by the herd-testing movement and the very favourable weather conditions have materially assisted in increasing tho company's output, details of which for the last three years are as folr lows:— 1924-25. 19-25-25. 1926-27. Tons. Tons. Tons. Butter .. 22,512 22,266 25,772 Cheese .. 4,626 4,767 5,019 Casein . . 657 922 767 Milk Powder 3.951 ?,260 4,114 Details of the company's fixed assets and capital are shown in the report as follows: 1925-26. 1926-27. Land, buildings and plant' .. ..£1.128,027 £1,131,224 Capital, issued .. 1,298,910 1,303,899 Capital, paid-up .■_ 907,936 1,000,039 'Excluding colliery. "As in previous seasons, every effort has been made, not only to maintain, but to raise the standard of quality of the company's milk products, and the-results obtained, more especially in respect o! 'Anchor' butter, must be gratifying to shareholders and suppliers," the continues. "The return to both chees<§?and butter suppliers will be rather less than for 1925-26 The past season has been a difficult and disappointing one from a marketing point of view. The abandonment by the Dairy Produce Board of absolute control in March last was a mistake of tho first magnitude, resulting in the sale ot much of the past seasons' butter and cheese at far too low a level. Butter-fat Return of 16.473 d. "The unsold stocks of dairy produce have been valued for annual balance purposes at very moderate figures, well within the prices tffeely to be realised. The market for the principal by-products, casein and milk powder, has been very steady during the past season. Recent advices from the company's London office state that the milk powder market i& in a healthy condition. "During the coming season, the manufacture of condensed milk for export wili be commenced at Waitoa." Reviewing the financial results, the report states that the average price ad-., vanced for butter-fat received for buttermaking throughout the season was 13.524 d. The total average price paid for superfine butter-fat will be 16.176 d. In addition the company has subsidised cream cartage and paid railage on cream amounting to .182 d, this increasing the price paid at central factories to 16.358 d for superfine butter-fat. Further, a sum equivalent to .115 d per lb." butter-fat has been ; placed to - reserve, making the total amount returned by the company for superfine butter-fat 16.473 d. The cheese factories will receive varying payments in accordance with their manufacturing results All the prices quoted above are conditional on the produce unsold realising the values placed on it. < Casein suppliers have received (in addition to their butter payments) an average 0f'1.99d per lb. in cash. A further payment of |d will be available and will be credited to shareholders on capital account. Milk powder have received (in addition to the butter advance) a premium for skim milk. Tho amount to the credit of their profit and loss accounts for the past season will not be dealt, with until the unsold stocks have been realised and the final amount available for credit to share capital is definitely known. As in past seasons, depreciation has not "been written off milk powder factories. The plant has, however, been kept in the maximum state of efficiency and preservation as a charge to working expenses. Operations oi the Company* The report states that the milk powder market development account has been reduced by £4472 Is lid. The reserve has been increased by £25,369 is sd, and now stands at £28,585 19s 3d. The directors have entered into a very advantageous arrangement with the Challenge Phosphate Company, Lfd., and have taken up 50,000 preference shares in that company. The advantages _ in the price of fertilisers already received by the company's shareholders represent a very high indirect rate of dividend on the investment. During the year - the company's factories, plant and machinery have been kept in good order out of revenue and are in excellent condition throughout. The new butter factory- at Morrinsville commenced operations on January 1. Owing to the fact that the Clevedon factory, which is now a very old building, has outlived its usefulness as a butter factory, and it was found more economical to transfer the work of manufacture hitherto carried on there to the Paerata factory, it will be converted to a bulking station. "Recently a proposal for amalgamation with the company was placed before the shareholders of the Rotorua Co-operative Dairy Company, Ltd., and the shareholders endorsed the proposal by the requisite majority. The Rotorua _ Company's factory at Ngongotaha will in future bo operated by the New Zealand Company. Amalgamation proposals are also being considered by the shareholders of the Waitemata Co-operative Dairy Company, Ltd., who have passed the necessary by the requisite majority." Finance of the Colliery. The company's colliery has again a successful season. Debentures of a total value of £75.000 were issued and the amount owing by the Colliery Company to the parent company has been repaid in full The New Zealand Dairy Finance Company,* Ltd., has, during the season, fulfilled a most useful function, -and has been the means of assisting a considerable number of the company's shareholders. The retiring directors this year are as follows :—Northern electoral district, Mr. Dynes Fulton, Tuakau: southwestern electoral district, Mr. D. Bruce, Horsham Downs; south-western electoral district, Mr. F. E. Hughes, Waharca; Thames Vallev electoral district,- Wait™ ward, Mr. P.'II. Saxton. Tatanui.