DAIRYING YEAR

New Zealand Herald, Volume LXXII, Issue 22194, 22 August 1935, Page 14

DAIRYING YEAR

NEW ZEALAND COMPANY OPERATIONS REVIEWED / SLIGHTLY SMALLER TURNOVER FARMERS' IMPROVED OUTLOOK [FROM OUR OWN correspondent] HAMILTON, Wednesday A turnover of £5,363,264 was shown in the statement of accounts of the New 2'ealand Co-operative Dairy Company, Limited, for the year ended May SI, 1E35, as given by the general manager, Mr. C. J. Parlane, at the cnnual. meeting of suppliers of the company to-day. The turnover for the previous year was £5,441,917, there boinj a reduction o:f £78,653 on the last renr's business. Tho decreased turnover was duo to tho dirpp in production caused by the lo:ag dry spell in the summer. There was a fair attenda ieo of suppliers at the meeting, over which the chairman of directors, Mr. R. H. McKenzie, presided. In moving the adoption of the report jind balance-sheet, Mr. McKenzie referred with extreme regret tc tho loss of the late chairman of dir?cl;ors, Mr. Jjvnes Fulton, who died last December, Less Favourable Season Continuing, Mr. McKenzie said for the first''time for many years here had been a reduction in output, which was entirely due to climatic conditions. When the company was formed in '1919-20, the total output of b ltter was 8717 tons. For 1933-34, production of butter amounted to 43,637 tons, while i'or the season just closed 1h« amount of butter made was 42,080 i.ons. To attain within 1548 tons of the previous year's production, the company had the assistance of 150 additional herds and i.he change-over of the largest cheese factory to butter and mill* powder. Mr. McKenzie dealt with the price movements during the year. There bad been an increase in butter consumption, due to the prices bcirg within the purchasing power of thu people. Farm costs had remained aI; a high level, it being apparent that advantage was . being taken of high tariffs and the exchange rate to exploit tho users of many commodities. Dealing with cheese, Mr McKenzie said there had been a decline in production from 11,421 tons in 1933-34 to 9019 tons for the season just closed. This, apart from the climatir conditions, was duo to one of the company's largest cheese factories chrnging over to 'the, manufacture of butter. . Cheese Marfest Encouraging Prices for cheese were lower than were expected, but the o.itlook now was rather encouraging. New Zealand, he said, supplied 70 per cent of tho cheese imported into Great Britain. The imports from Canada were dwindling and a considerable quantity «f Taranaki milk was being turned into "butter and casein instead cf cheese Mr. McKenzie said a great opportunity of procuring the premier q.iality place on the British market noir presented itself. He deprecated the changing over from tho manufacture of onu product to the other. During the year, 23(3 fewer nerds and 12,790 fewer cows were tested, and the avera E»e butter-fat production had fallen from 250.241b. to 2^9.761b. Adverse financial and climati: conditions were the cause of the reductions. With a view to combating the ravages of mammitis, the computy had decided to instal microscope at the Waitoa and Te Awamntu milk powder factories. Milk received world be tested with the object of eliminating affected cows from the herd. Financing of Farmers Continuing, Mr. McKennie said the Dairy finance Company hud advanced £58,C00 to suppliers of ths New Zealand Co-operative Dairy Company, Limited, last year, as aga.nnt £51,000 for the previous year. Tie company had ample funds with which to meet demJinds. It was pleasing :o note that those who had received advances had stood up well to their obligations. Since its inception the Daily Finance Company had advanced £581,000, and had "had £625,000 returned, leaving a balance outstanding of Suppliers assisted numbered 3325, the average loan being £2OO. Tie company had guaranteed loans totalling £312,256 advanced bv the Rural [ntermediate Credit Board, and loans amounting to £47,480 were still current, Dealing with the bacon industry, m which the company was interested, Mr. McKenzie said the concert with which the company was associate ! bad paid a dividend of 4 per cent. Though enrers had not had a very profit ihle year, it was pleasing to note that producers had no'cause for complaint. There had been intense competition ior pigs, and prices had remained firm, ranging from 5d to s§d per lb. ior baconers, and from 5d to 6d for pcrliers. Last year 417,4(51 pDr.cers and 148,998 baconers had been killed in New Zealand for export, both figures showing a marked increass over those for previous years. At present the future of pork and bacon prices looked Bound. ... ' More Hopeful Feeling Concluding, Mr. McKenzio said a more hopeful feeling for the future of the dairying industry prevailed. There was a buoyant feeling respecting wool, and it was expected that aigher prices for this product would rile. Mr. McKenzie warned his heareis not to be carried away by optimism and the cheap rate ruling for monoy into buying land at a price beyond its producing value. The tragedy o ; farming in this country, he said, was ;hat land had been bought at prices ell beyond its real value. "Let past (x]>erienco be your guide for the futuro," he concluded. In his review of the season's operations, Mr. Parlane said the total output of dairy produce manufactured by the company was 59,244 tons, a decrease of 2034 tons whea compared with the preceding year, ''ho Waharoa factory, with 5280 tons, lad the largest output of butter, while To Awamntu, with 4237 tons, .vas second. Manawaru had the largest output of the company's cheese factories, with 976 tons. M:r. Parlane said there war. still need for every care being taken in the cowshed? to ensure absolute cleanliness. Effect of Ilxchaugo In answer to a question, Mr. Parlane said the' value of the exchange rate on all commodities produced by the company equalled £606,123. He .vas unable to state what the excha lge cost the suppliers in goods they purchased. A remit asking the directors to consider the question of further sub-divid-ing the electoral districts in order to give shareholders more even representation was carried. A resolution was passed asking the Government to remove the import duty on cement and to hold an inquiry into the cost of manufacturing cement. Shareholders expressed satisfaction with the operations of the company, and thoy passed unanimjus votes of thanks) to the London manager, Mr. J. B. Wright, to the retiring.; imd present directors and to the management and staff. At a subsequent meeting; cf the directom, Mr. R. H. McKennie was reelected chairman and Mr. F, flushes deputy-chairman-.