DRUMMOND DAIRY FACTORY CO. LTD.

Otautau Standard and Wallace County Chronicle, Volume XXVI, Issue 1282, 26 August 1930, Page 1

DRUMMOND DAIRY FACTORY CO. LTD.

m - The following is the Annual Report of the Drummond Dlairy Factory Co., Ltd., to be submitte<|yi v the Public Hall, Drummond, on aath August, 1930. '■:).. There is a slight 'reduction m tne intake bf milk and cheese manufactured. The total cheese produced has been 197 tons lewt. Oqrs. - 61bs. against last year 197 tons 12bwt. and 206 tons 2c wt.' 2qrs. 141bs. for the 1928 season. The milk used to ".produce lib.- of cheese has been 10.261b5. against 10.66 lbs. the previous year, and the cheese manufactured from a pound of butterfat has risen to 2.22ib5, from 2.661b5. m, 1929. The .whole season's exportable . output has been consigned through Amalgamated Dairies, Ltd., on a South Island pooling basis, ship for ship, grade for grade, and colour -for colour. The return has been 7.40 ' f.0.b./ which compares ravourably with consignments generally.! To the 1 f.o.b. price there is to be added £240, pi/6 profit made on exchange' on consignments, while a rebate dt<over 4000 lbs. weight has been saved on shrink-" age, representing a value of £120. , There were several opportunities for selling f.o.b. early ih the season, and these received the careful consideration "of Directors. In all cases the prices indicated were considerably under the prices realised • during the previous season, and as there' was no indication at the time of the subsequent serious slump which affected a great many shipments, it was decided to consign. That a mistake was 5 ; -made is now apparent. Over 70 per cent, of the, Dominion make of cheese was snipped under similar conditions to.Drummond' only 27 per cent, having been sold f.o.b, While this result, the Directors cann'ptysee how similar mistakes are to be averted unuer current marketing conditions. Present London prices a/c not promising and offers along current values wouldy • scarcely Directors m making speculative sales a year( m The incoming season will demand much careful consideration to E)irectors of all factories. With the exception of three small shipments ail consignments have been sold. Advance payments for the season have been : September to" -February (inclusive) 1/4, March 1/2, and the remainder of the season 1/-. From surplus since realised It is proposed to pay out at the Annual Meeting- an additional 2Jd. per Ib. on March butter-fat, and 4_d. per lb. orr *■ April, May and June. The capital advance from the Bank has been reduced during the year by £306, and that loan now stands at £1320 5/6. Most items . of. expenditure are slightly lower than last year, and manufacturing, expenses generally show a downward tendency. From reports, arriving trom Great Britain there appears more than ever a ' necessity to pay attention to quality and to conserve our southern manufacture to full cream cheese. The industry m the Province having decided m favour of a "Southland" brand it is imperative to keep the quality up. At two important conferences of the South Island Dairy Association, Ltd., and the .National Dairy Association, the discussions revealed a strongly growing tendency towards, the grading of milk and paj'ment on quality. This may be the practice at no distant date.. Mr D. Sutherland continues the efficient management of the Factory. The retiring Directors are Messrs D. Stalker I. >C. Lindsay, and both- are eligible for re-election. Mr' F. A. Webb, . Auditor, retires, is eligible and offers himself for re-appoiAtment.