OTAUTAU CO-OPERATIVE DAIRY FACTORY CO. LTD.

Otautau Standard and Wallace County Chronicle, Volume XXVI, Issue 1282, 26 August 1930, Page 3

OTAUTAU CO-OPERATIVE DAIRY FACTORY CO. LTD.

.__■..., ». ■■ The following is the Annual Report ' of the Otautau Co-operative Dairy ' Factory Co., Ltd., to- be submitted m " the Supper Room, Otautau Town Hall on" Wednesday,- 3rd September, 1930. 1 The cheese manufactured during the " year amounted to 394 tons 3c\vt. 2qrs. * '271b5., which constitutes a record for " the Factory. The whole of the exportable output, comprising s,4()B~ crates, ' was consigned to * London .. through ' Amalgamated Dairies/Ltd.; and has all been disposed of with the exceptionVof the . three last shipments. The average f.o.b. return is 7.4Ud., comparing very favourably with any other consigning shipments. In the early part of the' season there .was a good many inquiries for f.o.b. lines and your Directors gave careful consideration, to these. Practically all others were, subject to subsequent : confirm a - tion by the buyers and- . substantially less than the prices current the previous' year. Your Directors hesitated about accepting the prices and m- thisundoubtedly made an error as the Company^ has had to meet the worldwide depression m values that has been experienced m all primary products.. The evidence mat the ', great majority of Directors were similarly, . influence is shown by the fact that; only 27 per cent, of the Dominion's ex- j port cheese sold 1. 0. P. and 73 per i cent..: Consigned. Unfortunately the ex- - ( perience gained this season is no guide t as; to how Directors act next c year. There is no guafantee that mar- [ kets. will not change round. The fac- s tory has paid out Jd. per lb. butter- j fat oyer the season and there is a sur- ( plus on -.hahd, which would provide a f further three-farthihgs per lb. Sub- j jeet to an adjustment of shares and I provision yior bank reduction 1 this pay- t ment is under consideration of the ]i Directors. „ The result of account sales received reveals the fact that the r shrinkage on waxed cheese is much I lighter than the usual 1. per/ cent. Vj usually computed, y We have received _ rebate allowance of just On three tons j of cheese-as a result of this saving m v weight - of consignments. Exchahfe y has been a factor this season, too. The b Company has made >£458 14/6 out of t consignment drafts. This profit on ex- c change and the saving m. shrinkage is f accountable for otic half the margin _ of three farthiiigs per lb. Some exteh- _ sive alterations have been carried out g during* the year. The manager's house y enlarged and modernised, a new vat s and agitators installed, . a complete t equipment of rimless hoops and a new j motor. The cost of. these works has _ been .£750, against which £250 depre- 2 ciation has been written off. The V Methylene Blue Test has been m use, f, by the manager during the year, re- a suiting man improvement m the qual r y ity of milk supplied. The differential n paj'ment for milk has not been en- 0 forced. There is a growing tendency y towards the grading of milk and pay- n ment on quality. This method will pro- a bably become a regulation later. a Trading, "which was the subject of de- _ bate, iat. last Annual Meeting, has been c confined to a .few standard commodi- _ ties only, and the turnover is hot much s short Of last year, while the result is t a better profit. During the year the a industry in* Southland has approved of I the brand "Southland" ' being'; put 'oh c the. export cheese of the Province, and s it behoves every Company to maintain y the highest grade of quality. The x Directors recommend the payment of a .dividend of 5 per cent, on the paid j up Capital of the Company. Con- . ( Sideration has been given to the ques r , i Hon of>ihstituting. some method' of J periodically adjusting the capital share \ so as to Vproyide for redeeming the*;! shares of suppliers who have gone biit of they industry and left ithe District. , ThVmatter is surrounded with' difficul- ' ties and ho solution has yet been ar- j Wye 4 at. .The Directors retiring are .-'. W. Smellie, John_G. Flett and j F. HyGrahe, -who offer themselves .for re-election; ; Nominations from • candidates for the pirectorate require to be , m the hands of the Secretary seven , clear days before the Annual Meeting. TheVFacfory continues to be efficiently "managed by Mr A; Beange and the staff has loyally assisted. .. Mr George. Featherstone retires as Auditor, is eligible and ; offers himself for re-ap-pointment.