DAIRY UNION

New Zealand Mail, Issue 1847, 31 July 1907, Page 20

DAIRY UNION

THE ANNUAL REPORT, RESULT OF THE YEAR'S OPERATIONS. (Special to the “N.Z. Times.”) PALMERSTON, July 25. The fourteenth annual report of the New Zealand Farmers' Dairy Union, Ltd., was issued this afternoon. It is as follows: FINANCES. Your directors have pleasure in again placing before you a very favourable statement of the result of last year's work. The surplus for division amounts to <£3158 16s 6d, and the directors, being unable to come to a unanimous opinion as to its disposal, decided to leave the question to the shareholders in general meeting. A most satisfactory feature of the bal-ance-sheet is the improved position as regards our liabilities under debentures and bank overdraft, the former having been reduced by the usual redemption of a bond for <£soo on March 31st. By deducting the amount out on loan to suppliers, etc. (£3648), and the margin between selling price of the butter in store (£1894), and the sum advanced against it, as represented by Johnstou and Co.'s advance account, it will be seen by a simple calculation that our bank overdraft would be reduced to £691. Add to this amount sundry current liabilities amounting to £2599, and it leaves the nominal overdraft at £3290. Our total liabilities outside shareholders’ capital would then be only £8790. This will demonstrate that financially the union has advanced to a very sound position, and has at the same time paid out reasonably good advances to its suppliers. By thus steadily reducing its liabilities it is enabled to pay fo the supplier the money hitherto paid to agents and bankers as interest. THE OUTPUT. During the past year 221 new shares have been taken up, and, as will be seen by the accounts, £4537 has been distributed us a further payment to suppliers. The butter manufactured for the season is 867 tons lOcvt 2qrs 21b, which is sixteen tons in excess of last year. This increase, small as it is, has resulted in a decrease in cost of manufacture, and will indicate what a great saving could be effected were a still larger supply available. Of the above output 51A were exported, 266 tons were sold in the colony and 91 tons are still in store. For our exported butter, very satisfactory prices were obtained, by our London agents, Messrs Weddell and Co., for which we accord them every credit. Our butter continues to grade very uniformly, going from 91 to 93 points out of a possible 100. As evidence of its reputation on the London market, it may be mentioned that we lately sold a large parcel at 3s per cwt. higher than the market quotation for New Zealand choic-' est. CHEESE. Your directors, in common with the management of other companies, were much exercised over the question of cheese-making, but after due consideration, and after consulting the suppliers at the various centres, were guided by the emphatic opinion of advisers in London that the present high prices for cheese would not be maintained next season, and have decided not to erect cheese plants at present. SOME STATISTICS. For the further information of suppliers the following table is appended: Price© Advanced. July and August 10^d September and October lOd November 9&d December to March 9d April to May B^d June Pounds of milk received, 45,761,093. Milk required to make lib of butter, 23.351 b. Highest monthly average test, 5.03. Lowest monthly average test, 3.38. Average test for year, 3.8. Pounds butter made, 1,843,258. Your directors greatly deplore the death of a valued member of the board, Mr F. W. Bills, of Otaki, who died in February last. The directors who retire by '■ rotation are Messrs Maul and Yoss, who, being eligible, offer themselves for re-election. In conclusion, the directors trust that the suppliers will continue to support the company, find point out that its improved financial position will enable them to reap the reward for their loyalty in the past. Mr Wilberfose, the retiring auditor, offers himself for reelection. BALANCE-SHEET. The balance-sheet sets the value of the plant, buildings, land, etc., at £29,332 13s 6d. The paid-up capital amounts to £l4 327 5s The manufacturing account shoivs £65,770 13s 2d as advance against buf> ter-fat, with a balance of £11,023 19s da to profit and loss account. Gross proceed© of local sales £37 459 14s of London sales £50,447 6s Ud from which should be deducted £5860 19s Id ns various freight, commitsother oharßesStoAon hand is out down as being worth £8940. The report and balance-sheet will be ±ne submitted to memoeis Town general meeting, to be held JyJa wust Eketahuna, on Monday, August 19th,* at 1 p-m. V.