FARMERS’ DAIRY FEDERATION

Southland Times, Issue 23942, 7 October 1939, Page 3

FARMERS’ DAIRY FEDERATION

ONLY 14 ATTEND MEETING SOUND FINANCIAL POSITION In marked contrast to other years, there was an attendance of only 14 at the annual meeting of Farmers' Dairy Federation Limited yesterday morning, when Mr John Fisher presided. In moving the adoption of the annual report (already published) and balance-sheet, Mr Fisher said that under the shadow of the war in which the Empire was engaged all ordinary interests were dwarfed. With the emergency conditions under which business was now conducted they could only carry on, and when they could actively help they must so arrange their actions as to obviate any chance of hindering the work of those immediately engaged in winning the war. “The work of our own company proceeded with smoothness during the year,” he added, “and it was only after the closing of the accounts on July 31 that the Empire became involved in the war with Germany. The opening months of the season now under review were very difficult ones. Unfavourable pasture conditions prevailed almost up to Christmas and our cream intake was seriously affected. From the opening of 1939 matters very materially improved and each month witnessed a gradual recovery resulting in wiping out early shortages and finally reaching within 18 tons of the previous season.

“The financial position of the company is verv sound, our responsibilities compared with 10 years ago are negligible and our reserves have materially increased.■

“I know that some criticism is still made on the results attained by . the company and unfavourable comparisons made as to pay-out with more favourably situated companies. This criticism is founded on a lack of knowledge of the governing factors. This company has the widest and most sparsely cream populated area in the Dominion to cover, and for its output the largest number of small suppliers. A fact which is not often noticed is that Southland is a cheese dairy district with a large percentage of dairy cows adopted to producing cheese making milk. The average butterfat test is therefore lower and the average cheese production to the pound of butterfat higher. These two figures naturally result in a larger differential between cheese and butter, than among butter producing herds. CHEESE INDUSTRY “The importance of the cheese industry in Southland has been so paramount that we have always supported a liberal differentiation in the price, although such action was not in the personal interests of the company. What we have accomplished, however, and it is something of which we have reason to be proud, is that we now pay suppliers per lb of butterfat a higher price than we receive per lb of butter. This has never before been accomplished; in fact it has never before been approached in the history of the industry in the province.” Mr Fisher said that the company had continued to act as the principal distributing agent of the Local Marketing Department for butter in the province, and the connection had been quite satisfactory. Various modifications had been made by the department in the allowances for the conduct of this service and so close did these approximate to actual cost that the utmost economy and efficiency had to be exercised to break even. The equipment and personnel of the company had met the demands. It was difficult to determine what might be in front of them as a result of the international crisis, but he was safe in saying their own company would afford its maximum help in the fulfilment of any duty the authorities called upon it to undertake. They had the equipment and the space to handle much larger quantities than they were doing, and either in manufacture or distribution the staff would loyally combine to give the community the most economical and efficient service. Since the accounts were closed, the directors had completed the sale at a satisfactory price of the premises taken over from the Southland Dairy Company at the time of the amalgamation. For years these premises had been let at an interest paying rental. The directors, however, considered it wise to convert the asset into cash when the opportunity presented itself and the proceeds were being added to the company’s reserve fund. For some years the directors had been deeply concerned at the inadequacy of the water supply at Gore, and so grave did the position become that serious consideration was given to removing the factory to another site or even closing down. The borough authorities, although aware of the seriousness of the position, were unable to afford relief, as private demand called for first protection. The directors secured options over various sites and experimented with boring. On one of these sections a really splendid underground supply was struck, far in excess of their needs, and with the permission of the Gore Borough Council the company was afforded facilities for carrying a pipe line under the street from the site to the factory. It now had a supply capable of coping with any extension of output likely to be faced for manyyears. The report and balance-sheet were adopted. The retiring directors Messrs John Dunlop and R. S. Tait, were re-elected. The meeting endorsed the resolution passed by the North Wairoa Dairy Company concerning a more equitable basis for the fixing of the guaranteed price. At a subsequent meeting of the directorate Mr John Fisher was re-elected chairman.

HORSE FAIR AT GORE

The monthly horse fair of the National Mortgage and Agency Company, Ltd., was held in the company’s horse bazaar, Mersey street, Gore, yesterday afternoon. There was a fair entry forward and the prices secured were on a par with those ruling at recent sales. Top price of £3O was secured for a six-year-old registered mare offered on account of Mr J. O’Donnell, of Brydone, and purchased by Mr J. R. McMurray, of Gore. Other young working sorts brought up to £2l/10/-, while several horses were passed in at better prices. Sales were: Mare 6yrs at £B, mare 7yrs at £9, mare lOyrs at £2l, mare 9yrs at £l2/10/-, mare 6yrs at £3O, mare aged at £5/10/-, gelding 4yrs at £l3/10/-, gelding Byrs at £2l/10/-, mare 9yrs at £9/10/-, mare lOyrs at £3/10/-, gelding 9yrs at £lO, gelding aged at £ll, gelding aged at £5/10/-, hack mare Byrs at £5, hack gelding lOyrs at £2. Passed in: Marc 3yrs at £6, mare syrs at £24, mare Byrs at £23, mare 4yrs at £25, mare 4yrs at £23, gelding 7yrs at £lO, gelding Byrs at £23, gelding syrs at £24/10-, hack gelding 3yrs at £5/10/-, hack mare at £23, gelding syrs at £24/10/-, hack 6yrs at £6, pony Byrs at £B.