OKITU DAIRY CO.

Poverty Bay Herald, Volume LX, Issue 18179, 29 August 1933, Page 6

OKITU DAIRY CO.

THE ANNUAL MEETING THE EXCHANGE POSITION The third annual meeting of shareholders of the Okitu Co-operative Dairy Company, Limited, was held today, the chairman of directors, Mr E. R. Renner, presiding over an attendance of about 30. The chairman, moving the adoption of the annual report and balance-sheet, already published in the Herald,,said that suppliers were pleased that, butter had improved bv 12s to 14s per civt. during the past few months, but at the same' time he did not think that they could expert a sudden jump back to prosperity,'for there were yet many difficulties ahead. He compared the position with a man suffering from a bad accident in a period of convalescence and then having ro meet his account with those who helped to place bjm on His fee’t again. However, Mr Renner looked forward to a ’process of recovery with better prices during the coming season. Touching on the raising of the rate of exchange last January, he said that many people were under the impression 'that the jump to a 25 per cent exchange was made in one act, whereas the improvement last; January was only £ls 10s at that time. He agreed with the Government action, except that the •action in raising the rate to 25 per cent was not taken soon enough; it should have been done 18 months before and it should have been done earlier iti the season, for ftfjino people who anticipated the actioiMwere able to get some of the plums. "tie ho'ped that the exchange rate would not be reduced suddenly, but rather by a gradual reduction of 5 per cent at a time over a period of years, ,nnd if exporters and importers were given foreknowledge of what was to happen it would l)e a great help. Mr. Renner also referred to the quota proposals made in the House of Commons by Major Elliott. 'lt seemed to him extraordinary that such a scheme should have found so much favor in a country with such large town populations, but thanks to the strenuous efforts of the Prime Minister, the lit. Hon. G. W. Forbes, who was at Home at the time, and of others concerned, it seemed as though quota proposals had been abandoned, and lie did not think they would be seriously entertained again. Quotas would have acted to the detriment of New Zealand, leaving the country with a big surplus to be. got rid of. \Ve were told that if quota proposals were not agreed to, the prices wuold fall to a still lower level than the very low point they reached. However, the market rOse alter the quota discussions were over, leaving those who held their butter in a good position. At the same time, Ahe Okitu company did not believe in holding, believing in selling as soon as possible, and the company •by adopting this policy came out well by saving 2s per cwt. per month, plus insurance and interest cliargos, probably being as wed off as if stocks had been held lor the rise that took place. The company had consolidated its position during the most trying times of the depression, enlarging its plant and factory, and at the same time paid out godd ‘advances to suppliers. The paid-up capital had increased by 48 per cent, during the year, the manufacture by 100 per cent., and wages by only 14.0 per cent., with office administration charges by a like amount. To date, 3000 shares had been applied for. The company was in a very sound position, and one that must be satisfactory to suppliers, - who were to be congratulated on the result. Mr. A. Mulholland seconded the motion for the adoption of the report and balance-sheet. (Proceeding)