OTERAMIKA DAIRY COMPANY

Southland Times, Issue 22999, 19 September 1936, Page 3

OTERAMIKA DAIRY COMPANY

ANNUAL REPORT. The annual report of the Oteramika Dairy Factory Co., Ltd., is as follows:— At the beginning of the season it was known that buyers were still very dissatisfied with the quality of English factory cheese and were likely to concentrate more on New Zealand production, which was showing uniform quality. That being the case and with the great shrinkage in North Island outputs during the early months, it was confidently expected that better prices would be obtained. As the season progressed, dry weather prevailed all over the country with a consequent general shrinkage in output. Compared with recent years the market was a good one and forward buyers were active, the bulk of the Southland output being sold f.o.b. There was, of course, the usual drop in price during the peak months when large quantities were going forward.

The company’s produce was disposed of to the best advantages, excellent sales being made as follows: September-October, at 6d per lb; November-December, at 5:?d; January and part of February on consignment, at 6.492 d; part of February to part of May, at 6 l-8d; balance of season, at 7d. The realizations for the season were:—Export sales, 5.824 d; export consignments, 6.492 d; all export sales, 6.035 d; local sales, 6.118 d; average all sales, 6.037 d. All export f.o.b. sales were subject to 1J per cent, commission. The average advance per lb butterfat has been:—First grade, ll.OOd; second grade, 10.50 d; average, 10.94 d. The balance of the appropriation account will permit a further 2 l-10d a lb to be paid for the season as soon as the 550 crates in the cool stores are shipped and funds are available. The pay-out for the season will then be:—First grade, 13.10 d; second grade, 12.60 d; average 13.04 d.

The directors recommend that a dividend at the rate of 21 per cent be paid. The cost of production shows an increase of 9/4 a ton compared with last year and is principally due to the decrease in output. The building and plant have been kept in a good state of repair. The average grade this year is 92.03 per cent, the proportion being as follows:— 21.07 per cent finest, 78.10 per cent first and 0.83 per cent second grade. Messrs J. Hoddinott and F. J. Wilcox, directors, retire by rotation. They do not seek re-election.