Increased Production

Sun (Auckland), Volume I, Issue 119, 10 August 1927, Page 9

Increased Production

New Zealand Dairy Company Reviews Successful Year NEW MARKETING COMPANY (From Our Oxen Correspondent.) HAMILTON, To-day. A SUCCESSFUL year’s operations is recorded in the annual report to be presented at the eighth annual meeting of shareholders of the New Zealand Co-operative Dairy Company at Hamilton on August 24.

The report states that there has been a gratifying increase in production. The butter production in 191920 was 8,717 tons, in 1924-25 it was 22,512 tons, in 1925-26 it was 22,266 tons, and for 1926-27 it was 25,772 tons, an increase of 15.7 per cent for the past season. Figures for cheese for the past four years show a corresponding growth, being 2,549 tons, 4,626 tons, 4,767 tons, and 5,019 tons respectively, last season’s percentage being 5.2. Casein manufactured in the latest season was 727 tons, and milk powder was nearly double that of last year’s production, being 4.114 tons. The growth of the company is illustrated by figures relative to property, plant, and capital. In 1919-20 land, buildings, and plant were valued at £405,823, and was now £1,131,224. In the same period issued capital increased from £290,068 to £1,303,899, and paid-up capital from £175,019 to £1,000,369 in land, buildings, and plant. The company’s colliery is not included. CO-OPERATIVE MARKETING The abandonment by the Dairy Produce Control Board of absolute control in March last was a mistake of the first magnitude. Arrangements had been made for the formation of a marketing company, to be known as the Amalgamated Dairies, Ltd., to undertake marketing beyond New Zealand, and endeavour to develop on a voluntary basis the principles of collective marketing. Mr. J. B. Wright, who for some *years had ably represent d the New Zealand Co-op. Dairy Company as European manager, would occupy a similar position with the Amalgamated Dairies, Ltd. The company’s factories and plant had been maintained in excellent condition out of revenue and the new butter factory began operations at Morrinsville in January. Clevedon had outlived its usefulness as a butter factory and the manufacturing had been transferred to Paerata factory. The former would be converted to a bulking station. AMALGAMATION Amalgamation was being effected with the Rotorua Co-op. Dairy Company and its factory at Ngongotaha in future would be operated by the New Zealand Co-op. Dairy Company, while similar proposals were now being considered bv the shareholders of the Waitemata Co-op. Dairy Company. The company’s colliery again had a

successful season and the new subsidiary company, Glenafton Collieries, Ltd., after unavoidable delay, had placed on the market an issue of debentures of a total value of £75,000, which found a ready sale ar.d the amount owing by the colliery company to the parent company had been repaid in full. The New Zealand Dairy Finance Company, Ltd., had in the past season fulfilled a most useful function. BY-PRODUCTS The market for the principal byproducts, casein and milk powder, had been very steady, and the latter market was in a healthy condition according to recent London advices. In the coming season the manufacture of condensed milk for export would be undertaken at Waitoa. The milk powder development account had been reduced by £4,472 Is lid. The reserve had been increased by £25,369 Is 5d and now stood at £28,585 19s 3d. An advantageous arrangement had been entered into with the Challenge Phospthate Company, Ltd., whereby the dairy company’s shareholders were able to secure supplies of phosphatic manures at a most beneficial price. The directors had taken up 50,000 preference shares in the phosphate company, and the price-advantages already received by the company’s shareholders represented a very high indirect rate of dividend on investmnt. OUTPUT SUMMARISED The following figures briefly summarised the past season’s operations* Milk received for butter-making 179,126.5121 b. Milk received for cheese-making, 110,278,5931 b. Cream received for butter-making, 99,625,2751 b. Total butter-fat received for buttermaking, 47,756,6551 b. Total butter made, 57,728,8151 b.; overrun 20.8 per cent. Average price for butter-fat received for butter-making during the season was 13.52 d. The total average price paid for superfine butter would be 16.17 d. In addition the company had subsidised cream cartage and paid railage on cream amounting to .182 d, thus increasing the average price paid at the central factories to 16.35 d for superfine butterfat. An amount equivalent to .115 d had been placed to reserve, making the total amount returned by the company for superfine butterfat 16.47 d. All prices quoted are conditional on the produce unsold, realising values placed on it. Casein suppliers had received in addition to butter payments an average of 1.99 d a lb. in cash, and further payment of Id would be available. Milk powder suppliers had received in addition to the butter advance a premium for skim-milk.