KENNINGTON NOTES

Southland Times, Issue 25367, 20 August 1935, Page 8

KENNINGTON NOTES

DAIRY FACTORY REPORT. (From Our Correspondent.) The annual report to be submitted to the shareholders of the Kennington Dairy Factory Company on August 22 states that the 1934-35 season has again proved a disappointing one. Once again the market has remained fairly steady all through the year and prices have fluctuated only within narrow limits, which, however, were on too low a basis to prove profitable. At the beginning of the season the market was quiet at about 48/6 for white cheese and 45/6 for coloured. Throughout Septembei and October there was very little alteration except that coloured cheese improved slightly until it reached a pai with white. Towards the end of Octobei the market reached 50/- and continued in the fifties until about November 23. During these months forward buyers began to operate and a large proportion of South Island September-Octo-ber-November make of cheese was sold at from 5d to 5.',d. A feature of this buying not experienced before to any extent was that quite a considerable proportion of the cheese bought was for specific shipment instead of certain month’s make. Buying for shipment is not so satisfactory from the factories’ point of view as the usual method on account of the fact that it is at all times difficult to forecast what shipping space will be available during any particular month. At the beginning of December prices eased off again to 46'to 47/- and about Christmas time dropped to 43/6. The market then firmed slightly and overseas operators commenced buying the December make at 5d to 5Jd. Early in January the market appreciated a few shillings more, reaching a top limit of 49/- A considerable amount of buying of JanuaryFebruary make took place at s£d. This buying continued spasmodically until the end of the first week in February, prices rising by eighths until 5!,d was reached. An isolated sale of February-March make was actually made at s|d. The market reached its topmost limit on February 15 when white realized 49/6, and ever since then prices have ruled below this figure. It was generally anticipated during the month of February that the prospects for the end of the season’s make were favourable. Dry’ conditions had adversely affected the New Zealand output in addition to which the butter market was very active on account of America purchasing fairly’ freely. Unfortunately these expectations were not realized and since the beginning of March cheese prices have been most disappointing. Values have fluctuated at from 43/- to 46/- and although a few parcels of end of season’s make were sold at 5Jd and 5,d a good deal of the back-end cheese had had to go forward on consignment. The output for the season on a cheese basis was 399 tons 3qr lib, a reduction of over 71 tons compared with the 1933-34 season. Sales were effected during the season as fol-lows:—September-November output at sid December output at sd; JanuaryFebruary output at 5.1 d; end of season at 5Jd. Approximately 326 J tons of cheese were sold f.o.b. at an average realization of 5.058 d net a lb f.o.b. and 15} tons were sold locally at an average price of 5.514 d. The average realization of all cheese sold was 5.079 d. There is still on consignment unsold 33} tons afloat and 221 tons in the cool stores awaiting shipment. This has all been taken into the accounts at approximately 4d a lb (the rate of advance).

A flat rate of 9d a lb has been advanced against first grade butterfat and 81d per lb against second grade. This -gives an average of 8.934 d a lb. The penalties on second grade milk amounted to £9l 6/2. The balance of the pay-out will be paid to suppliers as funds become available. The directors recommend that a dividend at the rate of 21 per cent, on share capital

be paid. The average grade this year was 92.173, the proportion being 27.11 per cent, finest, 71.23 pef cent first and 1.66 per cent, second grade. Messrs John Calvert and A. H. McLean retire by rotation. Mr Calvert is eligible and offers himself for re-election. Mr McLean does not seek re-election.