THREE HALFPENCE

Poverty Bay Herald, Volume LXIV, Issue 19376, 14 July 1937, Page 4

THREE HALFPENCE

KIA ORA DAIRY BONUS AVERAGE PRICE 13JD TOTAL SURPLUS £21,412 SMALL RISE IN COSTS A final payment of Hd per lb on the season’s ’butterfat will be paid to suppliers of the Kia Ora Co-operative Dairy Company, Limited, on August 20.

This will be made possible from a surplus of £21,412 which has accrued after advance payments of 12d per lb made throughout the first season of the guaranteed price, and the average price per lb over all grades of butterfat. during the season will be 13Ad in actual cash payments to suppliers. With the cost of cream cartage and dividend on shares added, the average would exceed 14d.

A review of the position was given to-day by the secretary, Mr. J. H. Sunderland, who stated that the total butter output was 1779 tons 2cwt., a record for the company and an increase of 82 tons on last year. Increased costs, he said, were not so heavy as anticipated. Notwithstanding the increase in staff to meet the 48-hour week throughout the summer and the payment of overtime rates from 1 p.m. on Saturdays, the •increase in output had materially assisted in keeping costs per lb. of butterfat at a figure only slightly higher than that of the previous year. All Costs Total 2.095 d All costs equalled 2.095 d per lb butterfat, compared with 1.918 d per lb butterfat the previous season, the increase being only .177, or considerably lower than Id per lb. These costs included cream collection, manufacturing charges, depreciation, repairs and maintenance, all charges from the factory to f.0.b., overhead charges, including office administration, and farm instruction.

The largest item in the increased costs during the season just closed was butter boxes. The outlay in this respect rose from £4754 16s 4d in 1935-36 to £6610 13s Id last season, the increase per box being from Is 4d to Is 113 d. The increase in the factory output was a means of preventing a substantial rise in costs per lb of butterfat, and the figure shown above was lower than it would have- been had there been no increase in production. “The quality of the company’s output, thanks to the finest quality cream supplied, has again moved up in the scale of quality table,” Mr. Sunderland continued, “and the average grade is higher than last year, when it stood at 93.78 points. There are very few factories with an output of 1000 tons or over that have attained this high standard.

Premium for Quality

“This high quality has resulted in the company receiving £ll7l Os lOd in premiums for 94 grade butter.” The percentage of cream and butter graded finest, first grade and second grade during the past season are shown in the table given below:—

This year all dairy company balance sheets are to be issued on a standardised form, and each individual item of expense is to be worked out at the cost per lb of butterfat so that a true comparison can be made between one company’s balance sheet and another.

Mr. Sunderland mentioned this when he said that the average pay-out per lb of butter required to be shown in the balance sheet was an average price over all grades and without the inclusion of cream cartage or dividend on shares.

He added that cream collection costs had increased from ,49d per lb of butterfat to .54d. There again there was an increase in wages and the provision of an extra driver to provide holidays required under the new legislation, but the increased output had minimised the increase in cost per lb of butterfat.

It was hoped to hold the annual meeting this month, Mr. Sunderland continued, but it was not possible to have all balance sheets distributed in time for this. The meeting was now fixed for August 12. The final payments on butterfat and dividend distributions would be made on August 20.

In conclusion', he said that local sales had increased by 30 tons over the previous season, and up to 401 b of the company’s butter was consumed per head per annum by the people of Gisborne.

Appearing in the Te Araroa Police Court recently on charges of drunkenness and disturbing an audience in the Gaiety Theatre, Te Araroa, Fred Crawford was convicted and discharged on both counts by Mr. E. L. Walton, S.M., but was ordered to pay costs amounting to £1 ss.

A confusion of the meaning of the word ‘just’’ caused a few smiles at the Gisborne Borough Council’s meeting last night. A letter was read from the conciliation commissioner forwarding a citation in the transport passenger drivers’ dispute. “They are just demands,” remarked Cr. j. H. Hall. “I do not know whether they are just or not,” replied the deputy-Mayor, Cr. H. Holmes, who was in the chair. “He means,” Cr. P. W. Buslmell explained, "that they are only demands.”

Death from natural causes in accordance with the medical testimony, was the verdict at the inquest held to-day on George Henry Ansell. The inquest was heard before Mr. M, Doyle, J.P., and a jury comprising Cyril W. Batson, foreman, Sholto D. Buntin, Frank J. Gartshore, and George A. Williams. An opinion of the cause of death was given by Dr. 11. Angell, who conducted a post mortem examination. He said that death was caused from coronary thrombosis of the left coronary artery of the heart. Afred Ralph Butler said that the deceased had stayed with him for the past 12 years. The deceased was a single man. He returned from work on Monday, and, went to bed, where the witness found him dead. Constable G. Neal stated that no marks of violence were noted. The inquest was conducted by Sergeant Moore. It’s home-like, as well as businesslike, Inside the Trocadero, Napier Open SundttV*.’'

Cream Butter p.c. p.c. Finest . 83.8 92.5 First grade . 15.0 7.5 Second grade . 1.2 nil