Farm and Dairy.

Opunake Times, Volume V, Issue 211, 11 September 1896, Page 3

Farm and Dairy.

NORMANBY CO-OPERATIVE DAIRY FACTORY COY.

The second anuual report of the directors, just issued to shareholders contains the following:—ln presenting this, the second ann jal report and balance-sheet, your directors are pleased to say the affairs of the Company are satisfactory. In considering the balance-sheet, shareholders must bear in mind that, owing to delays arising from various unforseen causes in the completion of the factory and the setting up of plant and machinery, operations were not commenced until the beginning of October, thus losing one of the best months of the year. During the season eleven consignments of butter were sent to London, amounting to 36,0101b5, the gross returns from which realised £2406 2s 3d, equal to 10229 pence per lb. The charges on these consignments amounted to £250 4s 6d, equal to I*Bl9 pence per lb, thus leaviug a net price of B*4lo pence per lb, or nearly BJ. Butter sold within the colony amounted to 18,0021b5, returning in the gross £657 15s sd, equal to 8.769 pence per lb. The charges on this amounted £24 lis, equal to 0.827 pence per lb, leaving a net price of 8*442 pence per lb much the same as the London consignments. Butter sold to milk suppliers 20401b5, netting £6l 19s lOd, equal to 7*293 pence per lb. Payment to milk suppliers at per lb of butter-fat—instead of at per gallon as formerly, has been found to work satisfactorily. 134,044 gallons of milk were received, containing, according to the testing, 51,8791bs of butter fat on which the average payment to suppliers has been 5*777 pence per lb. The actual butter made, however, from the churn was 52,052 lbs, being 3 per cent above the tests. On this basis suppliers have been paid 5595 pence per lb, or, taking the number of gallons supplied, the average payment has been 2-214 pence per gallon. Including the butter milk sold, with the butter, the total receipts for the season's output amount to £2144 4s 7d, or 9 654 pence per lb. The cost of converting 134,044 gallons of milk into 53,0521bs of butter, and getting the same to market amounted to £740 Is 7d, equal to 3*348 pence per lb, that is taking into account every item of charge shown in the balance-sheet on the dr side of profit and loss account, with exception of the deficiency of £94 10s 6d with which we began the season, a refund of £1 12s and payments to milk suppliers £1236 17s Id. Deducting the cost of conversion and marketing, £740 Is 7d, from receipts for the output, £2134 4s 7d, leaves the net amount for this season's output at £1894 3s, which is a net average of 6*306 pence per lb, or 2*496 pence per gaPon (2£ nearly), out of which as before stated the sum of £1236 17s Id has already been paid to the suppliers leaving a balance of £127 5s lid. To this may be added the balance from last season's London consignments, £lB 8s 2d, together with transfer fees, ss, and the profit on flour, &c, £1 5s lOd, making a total surplus of £177 4s lid. Out of this, however, has to be deducted last season's deficiency of £94 19s 6d, and a refund on flour supplied last'season, disputed, of £1 12s, leaving a net surplus available, as shown by the balance-sheet, of £BO 18s sd. Your directors propose to set aside this surplus of £BO 13s 5d as a reserve fund. In conning the tabulated statement at the back hereof, shareholders will no doubt be struck at the exceedingly low daily average milk supply—439J gallons. Herein lies the company's weakness. The expenses of running a factory on so low a daily average must necessarily be high. It therefore behoves every supplier not only to increase his own supply wherever possible, but also to endeavor to induce others to become suppliers. With this end in view, your directors are pleased to say that arrangements have been entered into with several of the leading dairymen of Te Roti district whereby the supply is expected to be nearly doubled during the coming season. Your directors are now preparing to meet the expected increase in supply. A water-wheel, estimated to be equal to 9 h.p., has been placed in position, whereby the splendid water power of the company will now be utilised, and a saving in firewood effected thereby. Operations are also in progress to decrease the temperature of the factory by means of a cold air currrent, and to provide cool storage. Your directors recommend that share deductions for the coming season be at the rate of Is per 60 gallons of the milk supplied.