SOUTH ISLAND DAIRY ASSOCIATION

Otago Daily Times, Issue 22905, 12 June 1936, Page 13

SOUTH ISLAND DAIRY ASSOCIATION

TWENTY-SEVENTH ANNUAL REPORT

INCREASED PRODUCTION RECORDED

The twentv-seventh annual report of the South Island Dairy Association of New Zealand, Ltd.. which will be presented at the annual general meeting of members in the Y.M.C.A. on Thursday next, states, inter alia: — PROFIT AND LOSS ACCOUNT. After making reasonable provision for depreciation in the value of gooda in stock and other assets this account shows a credit balance for the year of £155 18s Gd. The directors recommend that this surplus be transferred to the Capital Fund, which will then amount to £14,41)7 MEMBERSHIP. There are 104 factory companies on the register, being one more than the previous year. The new member is the Cloverlea Company, Temuka. TRADING. There was a slight drop in the turnover, compared with the previous year. Many of the factories on account of the fall in their outputs during 1934-35 had a larger carry-over of stocks of materials than usual, and consequently their indent requirements were less. The association, however, received a greater share of the available business, and this additional support' from the members partly compensated. It does not appear to be generally recognised by factory directors that the firms competing with the association base their prices on those quoted by the association. They invariably wait until they get information as to the association s prices before submitting their indent quotations, and it is quite apparent that the cost of factory requisites would be considerably higher if members had no trading organisation of their own. The directors are pleased to note that every year more members are obtaining all their requirements through the association. They would commend to all factory directorates the action taken by a number recently in having a resolution passed and recorded in their minutes that, whenever nossible. goods were to be procured from the association. The machinery department had a satisfactory year. The staff was kept fully ' occupied manufacturing milk and cream cans, coolers, cheese hoops, buckets, etc., and with repair work to factory plant. On account of the drop in the ttiilk supply, cans and boons were in less demand than usual, but this was more than made up by an increased demand for milk coolers ?nd water pumps. Sales and installations of factory nlant showed a marked increase. PRODUCTION.

For the year ended March 31, 1930, there was graded for export at all Dominion ports:—Creamery butter, 5,839,590 boxes: whev. butter, 56,437 boxes-, cheese, 1,192.591 crates. Compared with the previous year these quantities indicate an increase of 598.636 boxes of butter, and a decrease of 107.846 crates of cheese. On a butter-fat basis this represents an increase in production of approximately 0 per cent. , . Taking the export figures as a basis, there has been a drop of 23 per cent, in dairy production in the South Island in the iast three years. The following analysis shows the fall in tonnage at the van-

On the other hand the total production for the whole of the Dominion shows an increase of about 10 per cent, for the samo period. CHEESE. The following is an analysis of the cheese gradings for the year:—

"BOBBY" CALVES. The record number of 40,u0U calves were dealt with by tue Co-operative i'ool in Esouuilanu last season, Hie previous highest total being 27,380 in 1U33. There were no otber operators competing with the committee, which meant mat all the available calves went into the pool. Dairy tanners are at present vitally concerned with the question of " guaranteed " prices. It will be interesting to them, therelorc, to know that the Calves Committee, with the co-operative of the Southland Frozen Meat Company, tried out this system of marketing in connection with the disposal of last season's calves. The result was most satisfactory, but whether this was due to fortuitous circumstances or otherwise we are not prepared to express a definite opinion. Before the season commenced the committee made an agreement with the Southland Frozen Meat Company, under which the company guaranteed a certain price per calf for the whole of the season's supply delivered at their Makarewa and Mataura works. It was further agreed that the company would attend to the marketing of the skins, veal and other products, and should the proceeds therefrom, after meeting the usual freezing and other charges, exceed the guaranteed price, the whole of the surplus was to be handed over to the committee for distribution to the owners of the calves. An advance payment of 6s per calf was made to suppliers, and the substantial surplus realised from the sale of the products has enabled the committee to declare a bonus payment of lOd per calf, makinor the return to the farmers 6s lOd. The directors' information is that the average price paid for calves in the North Islapd last season was under 4s Od. The value of co-operation has been fully exemplified by these facts. WHARFAGE AND HANDLING CHARGES.

11l their last report the directors of the association mentioned that representations had been made by them to the Otago Harbour Board for a reduction in the wharfage dues on butter and cheese, and that the board had met their request by reducing the charge from 2s to Is per ton. They also asked that the board might give consideration to the receiving and delivery charge of 2s 7d per ton which is made on produce loaded at D\inedin. They pointed out that theaproducc was delivered by lorry from the grading stores to ship's side, and having regard to the fact that the only service given by the board was to transfer the butter or cheese from the lorry into the ship's slings, the charge of 2s 7d per ton was in their opinion quite unjustified._ The Harbour Board at a recent meeting decided to abolish the receiving and delivery charge altogether, and in lieu thereof to establish a harbour improvement rate of 3d per ton, this rate to apply to cargo dealt with at Port Chalmers as well as at Dunedin. The freight contract between the Dairy Board and the shipping companies provides that when the ship requires the butter or cheese to be loaded at Port Chalmers the ship shall be liable for the additional cost as compared with shipping the produce at Dunedin. The railage costs to Port Chalmers aro 6s 4d per ton, and in the past the shipping companies have paid 3s 9d of this amount, the balance of 2s 7d being borne by the factory companies. As a result of the Harbour Board's resolution the shipping companies will now be liable for the whole amount of 66 4d, and this will mean an annual saving to Otago factories of about £370. With the reduction of Is per ton on the wharfage charge the total saving will be about £530. GRADING COMPETITIONS.

The highest average grade for export cheese for the period from October 1, 1935, to April 30, 1936, was secured by Mr T. Y. Aris, manager of the Omimi factory, Otago. with an average grade of 93.740. Mr Aris has now come out on top three years in succession, and considering that he had the managers of 92 other factories competing with him, his success is most meritorious. He wins outright the association's trophy. The leading results in the competition were

as follows: —Omimi, 93.740; Milton, 93.561;' Little Akaloa. 93.395; Stirling, 93.382.

LONDON DAIRY SHOW

Southland factories again distinguished themselves at .the Empire Dairy Show held in Loudon last October. In the open class for colonial cheese the first award was made to the Orepuki factory, Southland (Mr J. Morrison, manager). As a result this company is the wiuner for the year of the Bledisloe Colonial Cup, the Bledisloe New Zealand Cup, and the Hansen Trophy. DIRECTORATE.

The retiring directors this year arc Mr William Stalker (Rangiora, Canterbury) and Mr William Hamilton (Winton, Southland), both of whom are eligible for re-election. The only nominations received are in favour of Messrs Stalker and Hamilton.

oua ports:— Butter. Tons. Cheese Tons. Bluff .. .. .. 245 3527 Dunedin .. .. 465 421 Tim aru .. 360 130 Lyttelton .. .. 278 243 1348 4321

Finest. First. Second. p.c. p.e. p.c. Whole Dominion 19.33 78.81 3.26 North Island .. 17.43 79.29 3.28 South Island .. 32.05 64.16 3.19 The relative particulars for the South Island ports are:— Lyttelton .. .. 47.85 50.79 1.30 Timaru .. . • 37.15 62.13 .72 Dunedin .. .. 35.40 63.39 1.21 65.50 3.87