BUTTER PRODUCTION DECLINE

Putaruru Press, Volume XX, Issue 1193, 1 August 1946, Page 2

BUTTER PRODUCTION DECLINE

MORRINSVILLE DAIRY COY. Presentation Of Annual Report “The efforts of the shareholders to make increased supplies of butter available for overseas wire completely nullified by the me o', serious drought conditions which prevailed over the whole of the company’s area of operations during the past season,” stated the report which was presented to the 24th annual meeting of the Mcrrinsviils Co-op-erative Dairy Co., Ltd., on Monday by the chairman, Mr. B. J. Pirrit. As a result figures for volume and turnover made unfavourable, comparisons with previoro seasons. While the current oeason afforded the company the opportunity of regaining contact with shareholders previously “zoned” away for wartime transport reasons and reinstate certain collection routes, the returned supply was, to some extent, offiaet by the loss of shareholders—temporarily, it was hoped —to other types of dairy manufacture. This was more attractive than the relatively low returns to be obtained from separation supply, together with pigmeats, as the latter continued to be at unprofitable , levels. To the end of December, however, the company's total production revealed a decline of only 5.2 per cent., but for the full season the comparative figures were.- Butter made, 1943-44, 3073 tore l , 194445, 3590 tons; 1945-46, 2849 tons; butterfat received, 1943-44, 5,636,9581 b; 1944-45, 6,588,2881 b; • 1945-46, 5,217,37911); loan to other companies, 1943-44, 683,3511 b; 1941-45, 751,7421 b; 1945-46, nil; total bu'terlat, 1943-44, 6,320,3091 b; 1944-45, 7,340,0301 b; 1945-46, 5,217,3791 b. Compensation Question Continuing, the >repo"t states that the decline in output from the factory was 749 tons and represented a fall of 20.86 per cent, over the previous year. Efforts were being made by • representatives of the industry to have the question of compensation for the phenomenal drought considered by the Government, and the question was now under discussion. % Converted into money value, the decline of 749 tons represented no less a sum than £116,943 —or over £2OO per supplier, —so that the nee rjsity for some assistance became quickly apparent. The actual payment made to shareholders for the 1944-45 season, excluding farm costs allowance, was 17.2645 d. Due mainly to the lowered output through the drought and other causes and a firming cost tendency in many items not adequately covered by allowances, there wac an increase in the costs from farm gate 'To T.o.b. Despite this, however, the company still remained in one of the lowest cost groups, from which fact was built its excellent returns.

Fundamentally the basic guaranteed price had continued for another season unaltered since 1942, but increased to the farmer by cer ■ tain cost allowance (amounting since August 1, 1945, to 3.904 d per pound butterfat) estimated to cover production costs. For the past season the company’s results could be summarised as followr.': Average advance payment, 14.376 d; surplus, appropriation account, 2.644 d; total, 17.020 d. Trading Activities iFarm costs allowances had been claimed on 258,8341 bof fat at 2.587 d, and upon 4,958,7961 bat 5.904 d, which yielded an average over the season of 3.852 d. In addition to the above payment there was to be distributed a rebate from the company’s store activities which would take the company’s payout average to 20.958 J per pound. It was felt this result would be gn-ati-rying to all. Referring to quality the report states that the decrease in autumn supply causing as it did a more rapid cessation of daily collection, together with -a marked prevalence of weed flavours during the cizason, caused a falling away in quality of both cream and resultant butter. Despite that, however, quality remained comparatively high and realisations in excess of the basic price. The company extended its thanks to the Dairy Division officers for their co-operation and assistance.

Total turnover for the year in the company’s trading department showed a still further increase, and the results were particularly gratifying in every way. The usual rebate of 4 per cent, had been credited to sharehloders and a substantial amount carried over. In the transport department better class vehicles had been acquired, and ample

depreciation had been allowed against them. Turnover had been extended, and this section of the company’s business had done good work in holding costs. All assets of the company had been well ca-ed for out of revenue, and adequate depreciation had been allowed for in the accounts. / Directors’ Retirement Messrs. B. J. Pirrit and A. G. Alexander retired from the directorate by rotation this. year. Both were eligible and offered themselves for re-election. It would be necessary, also, for shareholders to elect a director in place of the late Mr. D. T. Davies, who was also due to retire this year by rotation. Nordination, i for these vacancies would be received up to mid-day on Saturday.

Concluding, the report states that since last annual report victory in the world conflict had gone to Britain and her Allies. However, the early days of peace had brought many problems of a post-war nature, the first and foremost of which was tho need for food, particularly by way of fats and meat. Producers in the Morrinsville district were admirably eituated to make a most substantial contribution to this need, and the directors trusted that every facility would be given to shareholders of the company and other similar co-oper-ativcs that little encouragement which would make increased production possible in the shortest possible time.