DAIRY FACTORY COMPANIES

Southland Times, Issue 23599, 29 August 1938, Page 3

DAIRY FACTORY COMPANIES

ANNUAL MEETING AT MENZIES FERRY

MR A. M. WEIR REAPPOINTED CHAIRMAN

At the annual meeting of the Menzies Ferry Dairy Factory Mr A. M. Weir, chairman of directors, presided over a good attendance of shareholders. The directors’ annual report stated that owing to the extended period of almost drought conditions during the major part of the production season, the output of cheese was 66 tons lower, 387 tons being manufactured last season against 453 tons in 1936-37. All dairy produce manufactured for export was again taken over by the Government under the Primary Products Marketing Act, the basic price for cheese being fixed at the beginning of the season at 7.54 d per lb. Owing to favourable prices being realized from the overseas market, the basic price had now been increased to 7.75 d per lb. At the date of the last report, the payment to suppliers for the 1936-37 season was estimated to amount to 14.23 d per lb of butterfat. A subsequent increase in the original guaranteed price was made by the Primary Products Marketing Department, which permitted of a further payment of .9d per lb being made, making the seasonal average payment 15.13 d per lb of butterfat. The advance payments to suppliers for this season had amounted to 1/2 per lb for first grade and 1/1J per lb for second grade, making an average to date of 13.953 d. The unshipped stocks of export cheese had been taken into account at the Government purchase price for the respective grades, and the stocks reserved for local trade at 6d per lb. The appropriation account disclosed a balance of £3185 9/4 available for distribution and a further payment of 2.215 d per lb would be made, making the seasonal average payment 16.168 d per lb. A dividend on the paid up capital of the company was not recommended.

In moving the adoption of the report and balance-sheet the chairman said that the pay-out for the season at the factory would be barely 16|d, but whether there would be any more to come or not from the guaranteed price was not certain. To the suppliers, the pay-out was the chief item of interest and most of them would be wondering why Seaward Downs had paid out 17|d, Edendale 17|d and Brydone 16Jd, while they were receiving only 16id. One reason for this was the high testing at Menzies Ferry in comparison with other factories. This year they had had the lowest yield bn record, although most of the factories were working under the same conditions. He had seen the time when their yield had been 2.70, but it had gradually dropped until it was now 2.52. While their costs of manufacture were not as high as some factories, they were still fairly high, and possibly something could be done in this respect. Another factor affecting the pay-out was the grading, which revealed that they had slipped considerably in finest grade, but had gained considerably in the basic price grade and in the grade below the basic price. This was a fault common to most faci tories in Southland today, the average finest grade for Southland having fallen from 56 per cent, in 1926 to 13 per cent, for the year under discussion. While it was pleasing to see their average grade good in the basic price class, a higher percentage of finest would make a big difference in the pay-out. Their output, as was to be expected after the phenomenal yield of the previous year, was down considerably, the figures being 387 tons against 453 last season. At one period it was thought it would be much lower. This also affected the cost of production. There had been a good response to the buying of dry shares, some 1500 having been purchased. Alterations to the plant and machinery had been carried out last season, and they now had a most up-to-date factory which was almost free of debt.

Mr Weir said that the guaranteed price for the incoming season was not yet known, but the tribunal which had been sitting in Wellington had now completed its deliberations and the Government would be announcing the price before long. The report of the tribunal would be available to the public. A Dominion award had been made last season and had made a difference of some £430 to the factory.

The report and balance-sfyeet were adopted. Mesrs F. G. Dobbie and J. Fenton were re-elected to the directorate, and Mr D. M. Scandrett was re-elected auditor.

At a subsquent meeting of directors, Mr Weir was reappointed chairman. APPEAL TO FARMERS An appeal to farmers to join the Farmers’ Union was made at the annual meeting of Menzies Ferry Dairy Factory Company by Mr G. R. Herron, who has lately taken up the position of organizer for the union. As far as dairying and the union were concerned, it was often said the union was composed mostly of sheep farmers who had done

little for the dairy man, and in this he sympathized with them, stated Mr Herron. As a dairy man he had served a term on the executive and left because he felt they were not getting the consideration they were entitled to. But the position was changed today, and the union was keen to help the dairy man, and he appealed to them to try it out for a term, as he had great hopes of it at present. Farming was not like it used to be, and rmless they stood together they would make the biggest mistake of their lives and be crammed out of existence. Other unions through compulsory unionism were armed to the teeth with men and money, and the Farmers’ Union needed members to fight with also; for the union to be effective all farmers must be in the fight.

CLEARING SALE AT WAITUNA Dalgety and Company Ltd., held a sale of dairy cows at Waituna on Friday on account of Mr J. P. King. They were mostly Friesian Jersey cross and in very good condition, and showing close to profit. The cows averaged £9, the top pri.ce being £l2 10/-. Sales were as follows:—£l2 10/-, £ll 10/-, £l2 7/6, £l2, £9 10/-, £9, £9 5/-, £lO 5/-, £7 5/-, £lO, £lO, £lO, £5, £8 5/-, £7 5/-, £lO 5/-, £7 2/6, £9, £lO 15/-, £9 5/- £6 15/-, £7 5/-, £8 2/6, £6, £8 7/6, £lO 5/-, £8 2/6, £9, £9 15/-, £ll, £lO, £B, £6 5/-, £6, £9 (two), £6, £9 7/6, £ll 5/-, £6, five dairy heifers at £4 10/-, six dairy heifers at £5. On account of Messrs McMillan Bros., the following implements and horses were sold:—Dick harrows £l5, swamp plough £2O 10/-. drill £35, five-year draught gelding £25. THE PRICEOF GOLD LONDON, August 27. The price <f£ gold is £7 2/8 an ounce.