YEAR’S OPERATIONS REVIEWED

Putaruru Press, Volume XX, Issue 1193, 1 August 1946, Page 6

YEAR’S OPERATIONS REVIEWED

presentation of report

Production Falls From 3590 To 2849 Tons “With a final payment of just on 21d—including a balance of 1.64 d now being paid out —the season just concluded may, under all circumstances, be recorded ao a successful one,” said Mr. B. 3. Pirrit, chairman of directors of the Morrinsville Cooperative Dairy Co., Ltd., in presenting his report to the annual meeting of shareholders on Monday. Reviewing the season, Mr. Pirrit recalled that in July last year the restrictions upon tranofer of suppliers from company to company were, to some extent, removed, and a large section of the company’s suppliers^—-previously zoned away for transport reasons —was allowed to return. This entailed re-organis-ing and re-arranging cream collecting routes, and, simultaneously, sections of the company’s shareholderc* were approached by the company’s main competitor to supply whole milk. Some succumbed to the temptations of the higher prices.

Total supply regained under abolition of transport restrictions approximated 700,0001 b butterfat per annum, which meant, under normal circumstanced, that output would have exceeded 4000 tons. But circumstances were not normal. Due to lose of supply, and exigencies of a most unfavourable production season, output showed a fall of 20.86 per cent (from 3590 to 2849 tons) for the year. Particularly dry conditions in summer and autumn caused pronounced growth of weeds —particularly land cress—which, coupled with an “every-othsr-day” collection from an early date, caused a falling off in butter quality through poorer type raw material. However, despite this 37 per cent.— a (Substantial portion, earned the premium for 94 points butter, and the company maintained its place in the industry. Increasing Costs Mr. Pirrit said that at the outset of the season, industry leaders continued to press for greater recognition of the fact that real cosh? of butterfat production had increased steeply, and that even greater cost allowances wore required to stimulate the production so badly needed for export. While it had not been possible to got recognition of the industry’s claim that the greatest factor militating against dapyfarmers getting a fair deal was non-attainment of the theoretical average per cow, other adjustments were made. Farm cost allowances were increased by ,497 d per pound and farm labour allowances by .520d —a total increase of l.G|l7d per .pound butterfat, estimated to increase the payout to 20.60 d per pound, a figure the company had exceeded. Total cost allowances amounted to 4.315 d per pound butterfat, 3.9©4d applying to cost increases on the farm since 1938, and the balance of .411 d to increases at the factory. Suppliers might judge whether these allowances were sufficient or not, but Mr. Pirrit emphasised that they came from funds of the farmer—held back by Government policy. The basic .price was Is 4 id, and cost allowances made possible a payout between Is 8d and Is 9d. Company’s Operations The company’s operations were divided into four main sections: Buttermaking and its sale; merchandise section; transport buoiness; the ..office and service side which catered for all sections. It was with pleasure Mr. Pirrit indicated the enthusiasm existing through all departments. A pleasing feature was the co-operation between all departments and the directorate for the ultimate benefit of shareholders. Not only did shareholders see seasonal extensions of these sections, with attendant decreases in costs, but also the application of initiative to develop the busmens on sound liines. This was co-operation at its very best, and yielded dividends which, unfortunately, could not be measured in money values. All departments, with the exception of factory output, measured up to anticipated butter returns for the past season, and better results were anticipated for the new one. The company wen awaiting with interest the outcome of London discussions regarding prices for the

balance of 'two years of the fouryear contract. Even though it was election year it was unlikely that recently increased production costs would be covered—that is, the price increased—unlens the value under the contract was increased. However, Mr. Pirrit was positive that no large increase in production was possible, no matter how badly it was needed, without reinstatement of the primary producer to his rightful position in the community.