DAIRYING IN NORTH

New Zealand Herald, Volume LXX, Issue 21554, 27 July 1933, Page 5

DAIRYING IN NORTH

RUAWAI FACTORY'S YEAR HIGH QUALITY OF OUTPUT COMPANY'S MARKETING POLICY [by telegraph —OWN correspondent] DARGA.VILLE. Wednesday General satisfaction witli the outcome of the past year's operations in the face of the difficult economic conditions was indicated at the annual meeting of shareholders of the Ruawai Co-opera-tive Dairy Company, Limited, at Ruawai. There was an attendance of over 200 shareholders, and the chairman of directors, Mr. J. Irwin, presided. Moving the adoption of the directors' report and statement of accounts, details of which have already been published, the chairman said the number of suppliers to the company's factory had increased by 31 last year, and in spite of the very dry conditions experienced over part of the season, an increase in the butter output of 186 tons or 16 per cent had been achieved. Record Grading Points The grading .points constituted a record for the company, which had been placed third in the Weddel Cup competition. Of the butter manufactured, 99.4 per cent had been graded finest and the remaining .6 per cent had been first grade. Although the company had done so well in this respect during the past season, the chairman was confident that by maintaining the co-operative effort between suppliers and management an even better result could bo achieved. The deodoriser installed at the commencement of last season had fully justified its cost. Throughout the season the directorate had followed an open selling policy, both f.o.b. and consignment methods having been employed, continued the chairman. Over a number of years the company had achieved the best results by marketing its produce under the f.o.b. system. The report and balance-sheet were adopted. An explanation of the decline in butter sales, on the local market from approximately £15,000 in the 1931-32 season to £6196 last year was given by the manager, Mr. E. K. Hames, who indicated that during tho previous season the company had a contract with Auckland interests for' the supply of 100 boxes of butter a week. It had been found, however, that the arrangement was not a favourable one to the company, and therefore it had been cancelled for the 1932-33 season.

Opposition to Restrictions

Mr. E. M. Pinker was re-elected auditor. Messrs. J. Irwin and G. Scott were re-elected directors. At a subsequent meeting of directors Mr. Irwin was reelected chairman, and Mr. J. L. Bowkett deputy-chairman. Tho final payment for last season's butter-fat and the dividend, a total amount of £12,238, was distributed at the close of the meeting. Opposition to dairy produce quotas was expressed by Mr. W. Grounds, of Hokianga, a member of the New Zealand Dairy Produce Board, in an address to the meeting. He also reviewed ' the work ot the board. The meeting passed a resolution recommending the directors to do all in their power to retain the free marketing of produce, namely, f.o.b. sales, and resenting any suggestion of a system of restriction. A further motion was adopted recommending the directors to bring pressure to bear upon the member of Parliament for the district, Rt. Hon. J. G. Coates, to effect a reduction in the high tariff rates existing against the importation of British goods, as it was feared that unless some action was taken immediately the Dominion's butter exported to Great Britain would be subjected to a quota. Another resolution recommended to the directors that only British goods be stocked and sold in the company's store.

KAITAIA COMPANY'S RECORD OVER 20 PER CENT INCREASE The output of butter from the Kaitaia Co-operative Dairy Company, Limited, for the season to June <3O reached the record figure of 1717.99 tons, an increase of 295.72 tons, or 20.79 per cent over last season's production. Practically all the butter was consigned for sale, the •''directors holding the opinion that a consignment policy should be followed in an endeavour to maintain continuity of supply to buyers in Great Britain in order to safeguard the future market, as well as for other considerations. The total payments to suppliers for but'ter-fat, including the further payment which was recommended to be paid from the surplus available, amounts to £114,211, as against £119,552 last year. Tho average net payment over all grades with the dividend added is 8.700 d, and inclusive of cream cartage, 9.117d7 as against 11.706 d last year. The total amount paid as premiums for finest grade cream was £5393. Tho value of produce manufactured was £137,164, a decrease in comparison with the previous season'of £4781, tho average realisation per lb. being 8.551 d. Stocks in store, ailoat and unsold have been valued at BJd, which is equal to 78s, London. The suppliers to the factory number 603, which is 67 more than last year. Tho average grado of the butter manufactured wa» 93.46. 93.50 per cent of the production being graded finest, 6.10 per cent first, only 0.40 per cent being classed as second grade. Tho election of directors is being conducted by postal ballot and the result will be declared at the annual meeting. The company was established in 1901, tho factory being then in Kaitaia, but some years ago a modern concrete factory was built 011 the waterfront at Awanui to copo with the increasing supply of butter-fat, which year by year has shown a. substantial increase.