SUCCESSFUL YEAR

New Zealand Herald, Volume 82, Issue 25288, 23 August 1945, Page 7

SUCCESSFUL YEAR

NEW ZEALAND COMPANY CHAIRMAN'S ANNUAL REVIEW . HAMILTON, Wednesday 'The company has had a successful year, and, collectively and individually, a good job has been done." said Mr W. Marshall, chairman of directors of the New Zealand Co-operative Dairy Company, Limited, at the 26th annual meeting of shareholders today. "The season was a favourable one from a climatic point of view, and this was the main factor which made possible a valuable increase in production." Continuing, Mr Marshall said: "It is my privilege to move the adoption of the 26th annual report and balance sheet, and the results which they record make it a pleasure to do so! For the time being, the thought uppermost in all our minds must be the victories which, since our last annual meeting have brought peace to the world. Events of the past six years, culminating in the stupendous happenings of the past few weeks, make ordinary matters seem small: but thought of the price that has been paid for the great deliverance vouchsafed to us subdues our spirits even in the first glad joy that the war is over. However, as we review the affairs of our company over the, past year, we can take pride in the knowledge that suppliers and employees have done their duty and contributed to the victory which the allied nations have won. "Reduced to a butterfat basis, the total produce manufactured showed an increase of 16.64 per cent, on th<? quantity manufactured in the previous year* which is only 3.57 per cent below the total for the peak year of 1940-41. The past season, therefore, was the company's second highest production year. Calculated on a butterfat basis the total Dominion production of dairy produce for 1944-45. compared with 194344 shows an increase of approximately 12i per cent, which is about 10 per cent below the peak year of 1940-41. Decline in Production "As weather conditions were unusually good and certainly not 10 per cent less favourable than 1940-41, it appears that dairy production has to some extent declined, due to the strain of six years of war. insufficient labour, and fertiliser. The world shortage of dairy produce and the importance of exports to the economy of New Zealand are so great that the combined efforts of farmers, dairy companies and the Government for the purpose of securing maximum production are a matter of urgent importance. Costs from farm gate to f.o.b. for both butter and cheese show a slight reduction as compared with the previous year, and the cost allowances are therefore reflected in the higher payout. "The New Zealand Dairy Finance Company, Limited, continued its assistance to suppliers. For the year ended April 30, 1945, the numbers of advances made were about GO more than in the previous year, but the total sum advaneed for the period was £171,883, a decreasg of £6072, compared with the year ended April 30, 1944; Aggregate advances made since the inception of the Company were £2.214,964. The interest rate has been reduced from 5J per cent to '5 per cent. No bad debts have been written off during this year. "The New Zealand Dairvfarm Mortgage Company, Limited, again restricted business to re-investment of payments received. The company's securities are satisfactory, and inclusive of reserve fund, outstanding mortgages total £159.622. K Superannuation Fund The employees' superannuation fund trustees during the year made a number of first mortgage advances, the balances, due at th end of the period being £173,414. Total advances to suppliers from these three sources of financial assistance amounted to £194,763, and the total balances outstanding at the end of the year amounted to £441,438. "As a result of the developments which have taken place in the national plan for. organising- the production, treatment and delivei • of milk for liquid consumption in New Zealand, good progress has been made with arrangements which should assist in providing an adequate supply of good quality milk. The only disquietening thing is that unmistakable evidence has been found of a movement, under the guise of municipalieation, to nationalise the treating houses. Such a development would deprive producer shareholders of this company of the treating houses at Epsom. Auckland, and Ncwstead, Hamilton. Fortunately, producers are fully aware of the danger; they are thoroughly? united, and any encroachment which threatens the interests of producers' co-operatives will be opposed to the limit Federated Farmers In reference to New Zealand Federated Farmers Mr Marshall said that the ballot which was taken as a result of the resolution passed by the last

- annual meeting, relative to block sub--1 scription, indicated clearly that an ~ overwhelming majority of those who s voted were in favour of the company " supporting the organisation of the whole farming industry under one head with producer sections. He reported . that this support had been given with I a tenacity of purpose which must have - helped the movement. "The proposal ) is an ambitious one, beset by great difficulties and it is good to know that there is now every reason to hope that in due time it will be consummated with possibilities of great accretion of strength if real unity can be achieved," he added. "In the post-war period, problems of rehabilitation and transition to peace conditions will crowd upon us fast and hard; the ravages of war must be : repaired, the hurt caused by grief i and bitterness must be healed, and this . wili require understanding and tolerance , if the world is to be made into a good ; place in which to live. There is a duty to discharge to the fighting men who i will return to our shores, and the company must be prepared to do its part. First and foremost in this matter, we must give a welcome home and a ready place to our own employees who will be given to understand that there is a worthwhile job to to done. Post-War Problems "As to prospects for the immediate future the contribution which, as producers and a producer organisation. wc can make to the solution of post war problems, is to do our best to secure the maximum possible production. The world is short of food, and hungry people are a danger to society. The target which was set us was to increase production by 20 per cent over a three year period, and the break up suggested was say 9 per cent, 6 per cent and 5 per cent in the respective years. The target has been passed for the first year by per cent but it will reouire maximum effort and favourable conditions to reach the objective in the present season. If it is reached we may still not have regained the ground lost. Furthermore there is 'plenty of room for expansion and the aim should surely be during the next few years, while there is a sellers' market, to increase our exports. "The two most urgent things which would help are;* firstly, the immediate release of men called up in the last reinforcement —(days will count at this time of the year)—and organisation of transport to ensure that what fertiliser we can get is available for use when it will secure the best results. "The past year has been a strenuous one for all concerned," Mr Marshall concluded, "and my best thanks are due to the general manager, the executive officers and staff for their loyalty and industry, and to my colleagues on the board /or their support, co-opera-tion and service."—Extended report by arrangement.