KIA ORA DAIRY CO.

Poverty Bay Herald, Volume LXV, Issue 19694, 28 July 1938, Page 6

KIA ORA DAIRY CO.

THE ANNUAL MEETING

SAfAI.L ATTENDANCE

LOCAL SALES INCREASI

The annual meeting of shareholders of the Kia Ora Co-operative Dairy Company, Limited, held to-day, was the smallest for many years, the attendance numbering only GO or 70, compared with numbers up to 200 in recent years. Apologies for non-at-tendance were received from two directors, Messrs. A. Lister and E. McDowell, who were ill.

The chairman, Mr. M. Doyle, said he was sorry that they could not have met under better weather conditions. In moving the adoption of the report and balance sheet, already published in the Herald, Mr. Doyle said that the company had had a very good season from the pay-out point of view. The reduction of output of 245 tons was a result of the bad season. A few of the suppliers had gone out of dairying, but the number of suppliers remained about the same.

The decline in production commenced early in the season, the chairman added, and he gave the following figures showing the monthly supply reductions, compared with the corresponding months of the previous year: July, 19 per cent down; August, 9 per cent: September 12 per cent: October 12 per cent; November, 7 per cent; December, (i per cent; January, 22 per cent; February, 20 per cent; March, 10 per cent; April, 12 per cent; May. 20 per cent: June, 24 per cent. The season's decline was 13 per cent on the previous season.

Cost of Production

The increased production cost of ,227 d per lb. buterfat would not have been so high if the company's output had been on the same basis as the previous year, Mr. Doyle continued, while higher wages had to be met. The costs for the year totalled C27.1G8.

The export butter brought in £140,108. During the latter part of the year, the company had inquiries from, the south of the South Island from a source that had received Kia Ora butter in previous years, and the company sent butter valued at £17,150 which was paid for almost immediately. As a result, the company was saved storage and interest charges, for much of the butter would have been in store still had it not been sold to the South Island. Increased JLocal Sales

The company had increased its local sales by £BOOO, the total being £41,344 during the season. In reply to a question. the secretary. Mr. J. H. Sunderland said that in selling about 25 per cent of its butter locally, the company benefited by a'bout id per lb. Mr. J. Davenport said he had discussed local sales with a representative of one company that had a big local sale, and it was considered that that company lost £ls a ton on local sales. Mr. Sunderland replied that that might result from a company which did not do its own marketing, such as 'done by the Kia Ora company. The cost of local distribution was £415 4s sd, including the charging of all wages for the man in charge of deliveries, and that man spent two hours a day in the factory. During the winter months the company did no! make sufficient butter for local requirements, and the stored export stocks had to be drawn on.

Mr. 11. B. Bull: Then it would pay the company to advance more for winter butterfat?

Mr. Sunderland replied that at the National Dairy Association's conference he and another delegate were the only ones who supported a remit in that connection.

Election of Directors

The three retiring directors, Messrs. A. Lister. H. J. Lougher and G. /If. Ballard, were re-elected unopposed. The chairman, when declaring the retiring directors elected unopposed, said that this suggested that the shareholders were satisfied. That satisfaction was reflected in. the small attendance at the meeting. Mr. Doyle congratulated the suppliers on sending in such a high quality of cream to the factory, enabling the company's butter to grade on an average of 94 points, and resulting in the company receiving added payments totalling £llOO during the season. He thanked Messrs. C. McKenzie and W. J. Lee for their help in farm dairy instruction. The company's average export grading was the best for the port of Gisborne. and the company also won at the Waikato Show first prize for export butter picked at random from the grading stores.

Mr. Sunderland pointed out that the company received the export premium on practically the whole of its export butler.

The chairman thanked the factory manager and staff for the splendid co-operation during the past year and also the secretary and the office staif for their excellent work. (Applause.) The chairman's 'honorarium was fixed at £2OO, the same as last year. On the motion of Mr. W. A. McCliskie, seconded by Mr. If. B. Bull, it was decided to call a meeting before the commencement of the bobby calf season in order to discuss the proposal for a (bobby calf pool.