PAYMENT OF 12.68D PER LB

Taranaki Daily News, 31 July 1931, Page 11

PAYMENT OF 12.68D PER LB

OMATA DAIRY COMPANY BONUS OF £4605 TO SUPPLIERS. REVIEW GF YEAR'S OPERATIONS A. payment of 12.68 d per lb butterfat over the year and a final bonus of £-1605 2s 9d were the satisfactory features of the report of the Omafa Dairy Company, which was presented to about 70 suppliers at the annual meeting in the Hurford Road Hall yesterday. Mr. G. H. Bell presided. The thirty-second annual report and balance-sheet stated that the figuies again showed a pronounced increase the quantity of cream handled by the coßifpany. The hutter market had ruled verv low throughout the year, and the disposal- of the output had given the directors very serious thought from time to time. Sales were effected as thought best, with the result that the company would 'be able ,to as well as any other butter .company of similar size. The adjustments of ■ last year’s appropriation account left a balance of £143 3s lOd, which the directors had applied to depreciation of the factory and plant. The balance to credit of profit and loss account on closing the books was £4650 18s 9d, out of which the directors had applied £45 16s to depreciation of the residences, leaving £4605 2s 9d. The directors propose a further payments of 2jd for September cream, lid on October cream, Id on November cream, 2d on December, January and February cream, and and March, April and May cream, , which would absorb £4531 15s 9d and leave £73 7s Od to 'be carried forward . or otherwise dealt with. This would make an average payment of 12.68 d per lb butter-fat over the year, which the directors considered very satisfactory. The directors thanked the staff and cartage contractor for good work through the year, also suppliers for their attention to the quality of their cream. It was only by care of all details and the delivery of only high quality cream that finest grade butter could be produced. THE YEAR’S STATISTICS Statistics for the year, with figures for the previous year in parentheses, were:—Number of suppliers, 141; cream received, 1,861,122.51 b • butter-fat, /61,417.291 b- average test, 37.69 per cent.; Ibs of butter made, 853,3911 b; overrun, 1,2167; average grade, season 1930. 31, 93.313; cost of manufacture, including cream cartage and depreciation, per lb butter l.OScl (l.lod), per lb butterfat 1.31 d (1.39 d total costs, including farm dairy insti-uetion and all expenses, per lb butter 1.5 d (l.oSd), per lb butterfat, 1.82 d (L9d). In moving the adoption of the report and balance-sheet the chairman said that he was pleased that a very satisfactory 'bonus of £4605 to be distributed to the suppliers without impairing the monthly payments. The year had been very difficult to know vfhether to sell or consign. It had certainly looked like a consigning year; While the company had been lucky .enough to make some very good sales it had been more or less in the nature of a gamble. One of the sales of 2000 to 3000 'boxes had been made at Is Id, which he considered to be in excess of the figure that would have been obtained by consigning. Recently a sale of June and July make had been made 'At 12 U- ~ .. During the past two months the company had taken in the whole of the Okato cream, and these suppliers had been treated just' as the company’s own ' suppliers. The arrangement bad proved very satisfactory. It entailed extra ■work in the factory during the winter, ■but it would have the effect of decreasing the working expenses of the company slightly. Everything in the factory, however, was in excellent order and the increased output would help to reduce costs. During the year the output had amounted to 3SI tons, and he thought next year would see 400 tons ■produced. Increasing the output was the only way to meet the cheaper prices ■which had, * to a certain extent, come to stay. The increase in the company’s ■production was not brought about by an increase in the area of land under cultivation but by increased production on the individual holdings,- The two cheapest methods to bring this about were top-dressing and herd-testing. These must go hand in hand. Taranaki at the ■present time was the most badkuaid district in New Zealand in regard to herd-testing. He could see great possibilities in the next few years in the increase in the amount olf fat from holdings. FARM DAIRY INSTRUCTORS. •Last year the company had been able to maintain the services of the dairy ■farm instructors, and excellent service had been received. There was a possibility of milk grading for cheese factories being brought in, but some of the cheese factories had discussed the matter and had thought it would be better to have dairy farm instructors. Both, •however, were necessary, and they should go hand in hand. The instructor's job on the coast lands where he was dealing with milk and cream was ■more difficult than on the higher lands. Feed flavours in the milk were tlie greatest trouble and the most frequent, and farmers who had this trouble had his sympathy. Quality must be the aim, and he ventured to say that had the cheese factories taken this into consideration thev would not be in their present position. The company’s average grade for the year was 93.313, as against 93.747 the previous year. Though there appeared to be a fall in the grading it was probable the grading had been stiffened. The new cartage contract represented a saving to the company and the service had not deteriorated in efficiency. Freezing space at the factory would have to be increased if the output rose at the present rate. Although the fac- | tory might be able to handle oJO tons there would have to be increased storage room. It was during the holiday time that the JifficnU-v Ha did

j not think anything should be done dur- | ing the coming season, although the cooling room would, have to be enlarged soon. He regretted that the company , had not built in New Plymouth as he had suggested. It would have 'been good business to have done 60 - Mr. Grey proposed that interest be paid on share capital, and Mr. Morris seconded. The chairman said there were 4172 fully paid shares, the interest on which at 5 per cent, would be £250. There were 1000 partly paid shares. There were about 100 dry shareholders. The directors had not adopted any policy concerning shares that were being disposed of, except to endeavour to transfer them to suppliers desiring them. It was pointed out that if interest were paid it would have to come out of the bonuses. Mr. Maloney opposed the project on the ground that he did not agree with dry* shareholders being paid interest from money earned by working farmers. ■ The motion was lost on a poll on a share basis. ■ Referring to the local trade the chairman said that during the year the company was faced with the problem of ■having to sell to local retailers at aprice Id below that which could be gained 'by exporting the butter. He pointed out that it was generally attempted to keep the return to suppliers on a level with that which could be obtained in Britain on consignment. The retiring directors, Messrs G. Green and W. Maloney, were returned unopposed. Mr. V. Duff was re-elected auditor. Afternoon tea was provided by a committee of ladies.