A RECORD YEAR

Te Awamutu Courier, Volume 53, Issue 3791, 5 August 1936, Page 5

A RECORD YEAR

N.Z. CO-OP. DAIRY COMPANY. IMPROVEMENT IN RETURNS. “In placing before shareholders the 17th annual report and balance sheet, we have pleasure in reporting that the season just closed has been a record one from a production point of view,” state the directors in the annual report of the N.Z. Co-op. Dairy Co-op. Co., Ltd. to be presented at the annual meeting in Hamilton on August 20. The substantial increase in the output was due largely to the loyal support again accorded to the company by the suppliers, together with favourable climatic conditions which prevailed during the greater part of the season. The results for the season show an appreciably better return to the producer than has been the case for some years and confirm the improvement which was indicated at the close of the previous season. It is hoped the improvement will be maintained and that the period of econimic depression experienced throughout the world in recent years is coming to a close. The policy of consigning produce to the United Kingdom has been continued during the season and the results obtained must be regarded as satisfactory. The outputs of commodities manufactured by the company are as follows: 1934/35 1935/36 Tons Tons Butter 42,089 47,500 Cheese 9,019 7,625 Casein 931 1,239 Milk powder 4,345 6,031 Condensed milk ~, 1,860 1,953 Total 59,244 64,348 . PROPERTY AND PLANT. The following table shows the total value of the property and plant, and also capital issued and paid up:— 1934/35 1935/36 £ £ Land, buildings and plant 944,172* 895,705* Issued capital 1,369,934 1,378,473 Paid up capital 1,276,765 1,300,575 *Excluding Colliery. The high standard of quality of the company’s products has been maintained during the season, and every effort will be made ip the future to obtain even better results. The guaranteed price scheme which came into operation on August 1, will be connected closely with quality, and the directors anticipate with confidence that co-operation between suppliers and the company will result in the output from the company’s factories of products of a high standard of quality. The company's buildings, plant and machinery have, during the season, been maintained to a thoroughly efficient working standard and are in excellent condition throughout. The colliery has been worked during the season without appreciable loss of time on the part of the company and with more successful results than for some years past. The New Zealand Dairy Finance Co., Ltd. continued to be of assistance to the parent company by meeting all reasonable requests for financial accommodation. The company has acquired a substantial interest in the New Zealand Dairy Farm Mortgage Co. Ltd., a company formed during the season for assisting land mortgagors. A number of suppliers has taken advantage of the facilities offered by this company. The stock of dairy produce unsold at the close of the season have been valued at reasonable prices for balance sheet purposes. OPERATIONS SUMMARISED. The following figures summarise briefly the operations during the past season:— Milk received for butter making, 253,034,717 lbs; milk received for cheese making 159,389,360 lbs; cream received for butter making 192,118,015 lbs; total butter fat for butter making, 6,490,031 lbs; total cheese made, 106,399,430 lbs; over run 21.94 per cent; total butter fat for cheese making, 9.490,031 lbs; total cheese made, 17,080,799 lbs; casein made 2,775,338 lbs; milk powder made, 13,509,741 lbs; preserved milk made 4,374,171 lbs; total butter fat used for milk sales, whole milk powder and preserved milk, 994,010 lbs. The average price advanced for butter fat for butter making during the season was 10.273 d per lb, exclusive of share capital. The total payment on butter fat of finest grade delivered direct to factories will be 13.172 d per lb including contributions to contract cream cartage and railage on cream. The average price for butter fat of finest grade other than direct delivered, will be 13.058 d per lb, inclusive of cream cartage and railage. Cheese factories will, in .accordance with their respective manufacturing results, receive varying payments. All prices stated above are conditional upon unsold produce realising at sale the value placed upon it for balance purposes. Casein suppliers have received, in addition to butter payments, an average premium of 1.5 d per lb butter fat. They will also be credited with a further amount of .936 d per lb butter fat available from the realisation of casein manufactured during the season. MILK POWDER MANUFACTURE. Milk powder suppliers have received, in addition to butter advance, the usual premium for skim milk. The amount to the credit of the respective milk powder group profit and loss accounts for the season will not be dealt with until a quantity of powder equivalent to the season’s “make” has been realised and the final amount for distribution is definitely known. Shareholders will note that some depreciation has been written oil milk powder assets. The buildings and plant have been kept in a maximum condition of preservation and efficiency as a charge to working expenses. Messrs D. Bruce, F. E. Hughes and A. Hayward, representing the South Western, South Eastern and Thames Valley (Waitoa ward) electoral districts respectively, have been re-elect-ed unopposed. An election will be held for the Northern electoral district.