GENERAL MANAGER’S SURVEY

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

GENERAL MANAGER’S SURVEY

LOSS OF SHAREHOLDERS Manufacture Of Milk Products Surveying the operations of the Morrinrjville Co-operative Dairy Co., Ltd., at the annual meeting on Monday, Mr. J. L. Faulkner, secretary and general manager, said last year some shareholders had been lost to milk supply, and the directors felt bound to enquire into the feasibility of producing dried milk to enable all or a proportion of shareholders to get similar increased prices for their produce. A year’s work and thought had led to certain conclusions, which were (1) that all markets were good at present; (2) that there was keen demand for milk powder, dried buttermilk, evaporated milk, condensed milk, processed cheese, and casein of all .typeo; (3) that these products could be sold unjler contract for three to four years at prices which would appear very lucrative, up to 7d per pound butterfat; (4) that there was being developed appreciation that milk solids, other than fat, were not used to the fullest advantage to the human race when fed to pigs; and (5) that there was awakening a greater need, for all types of food-stuffs, for which there were reasonable prcepccts of developing markets. Machinery Values Some would remember that in 1921 disaster overtook some companies which extended the manufacture of the milk products. Would •history repeat itself? Building costs and machinery values were very high; should the directors recommend an inveotment up to £2O per cow in these ventures? A milk powder plant would cost £350,000; casein facilities from £25,000 to £IOO,OOO and dried buttermilk £12,000. Contracts were available for relatively short periods, perhaps, up to 1950, and that was the stage beyond which the directors could not see. The balance-sheet showed an excellent petition, with paid up capital of £56,000, and reserves of

£6400, reflected in fixed assets which were amply written down through the year. The companyhad liquid assets of over £70,000 (excluding shares in other concerns) and creditors of only £53,000 —showing a surpluo of £17,000, or 30 per cent, of its paid up capital.