DRUMMOND.

Otautau Standard and Wallace County Chronicle, Volume XXV, Issue 1233, 27 August 1929, Page 3

DRUMMOND.

i The folio wing is the twenty-first annual report of the Drummond Dairy Factory Company, to be submitted to the annual meeting of shareholders to be held m the Drummond Hall on Friday, 30th August, 1929, at 8 p.m. The intake for the season chows a slight falling off as compared with the previous year;- total production of cheese being 197 tons 12 cwt. m place of 206 tons 2 cWt. 2qrß. 141 b. Prices earl^ m the season were on an attractive level, f .o.b. offers however,, being for short dated makeup to 3ls#peoem ber.: and inquiries only jWf limited quantities. The experience of . ;the previous season indicated tha"t it would be wiße to consign. In I^7-1928 youi Directors -sold the outpilt at pricesranging from B§d to 9jd f.o.b. An average of London values throughout the season, established th« fact that during that season consignment returns' would have provided for an additional, payment of l^d per lb. butterfat. / This season the reverse picture is presented, early f.o.b. sales caught the peak of the market prices and consign irients met a steadily falling 'market. The years output was disposed'of as follows: 632 crates to N.Z. Producer? Marketing Co., at 9 9-16 d; f.o.b 1656 crates to Wright Stephenson and Co., at 9d less 'l' per cent., f.o.b. 5&1 crates consigned, averaging about 8d : f.o.b. The experience of the two seasons

simply goeT to show the impossibility of Directors judging correctly th< best course to follow. stated ii last year's report. "No^tundainentall) sound course of information is avail able/ and no' standard of action has been established. . ■ A, smalt percentage of factories havi succeeded m obtaining top prices fo: the season; the great majority^ re turns are somewhat lower than . tni Drummond average. , While Southland is for the most par a '.'selling" province, something lik 90 per cent, of New Zealand chee* goes home on consignment. Close co-operation m marketing, will have t be observed before anything like unj formity of payqut will be establisheiJ Towards this end "group marketing? is becoming a topic of consideratio m the industry and is findng favot with many leaders; Experiments alon this line will be closely watched. . ISuppliers have been paid an averag flat rate of 1/8 per lb. throughout ,tl season. There is a surplus availab su&cient to. pay./ 'a further H per. 11 Should .the directors decide to /make

larger reduction m the Bank overdraft than has already been made during the year, the extra. payment of l§d will be reduced accordingly. The Manager maintains the high standard of quality of previous years while the factory and surroundings present a pleasing appearance entitling it to still claim to bis "The f Factory Beautiful." ' ■ Standardised cheese is now a recognised commodity on the market and an increasing number of factories all registering as manufacturers pf "standardised?*: Prummpncj reniai na a full cream factory. An additional vat, a new whey tanks and a waxing machine have been installed during the year. '"' On f.p.b, sales shrinkage of ~ waxed cheese is cal culated at \\ per cent m place of %\ per cent, for unWaxed. Consignment returns establish shrinl

age at 3-4 of a pound per cent. Th wisdom of waxing is a disputed poir among buyers overseas, but it look as if the practice is likely to be estal lished. The Co-operative Calf Pool operate again successfully during thei year, th Pool calves realising 10/- each to owe ers. Payment for omilk on quality ha been a subject of discussion at variou conferences and the following remit i submitted for your decision : "Tha this meeting of shareholders agrees t< adopt the grading of milk 'for chees' making by the Methleyne Blue Tes for the coming season, with a differen tial payment according to grade ai determined by such test."