LARGE CAPITAL INVESTMENT

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

LARGE CAPITAL INVESTMENT

DRIED MILK Morrinsville Directors’ Decisicl As soon a a possible the company proposed to embark upon the drying of its buttermilk supplies, fer which resultant product their appeared to he a reasonable prospective market, said Mr. B. J. Pinrit, chairman of directors, at the annual meeting of the Morrinsville Co-operative Dairy Co., Ltd., on Monday. This would involve a fairly large c‘:r ial investment, perhaps £IO,OOO, but due to sound financial policy company reserves would care for capital costs and there would be no need for additional capital requirements from shareholder^.

The directors had closely examined other avenues of dairy products, and to this end the late chairman, Mr. D. T. Davies, and general manager wttre ijent to Australia and various contacts were made in New Zealand. The problems were still under consideration because due to difficulty in forecasting markets, and high costs of building construction, decisions were difficult to reach. However, it was hoped ohortly that concrete proposals for the future of the company would be fina ised. The directors were not yet in a position to say upon what lines these proposals would take, but they appreciated their duty to look after shareholders’ interest: to the limit of their capacity. That waa why Messrs. Davits and Faulkner visited Australia, at a cost of just over £2OO. The information which had been gathered would be of much value. Due to post-war scarcity of many food emmodities there were buoyant marketo for milk products,, casein and buttermilk powder, and the practicability of entering thefield of manufacture had been closely examined. Capital expenditure involved was a matter of concern,. as also was the probable trend of future markets.