DAIRY FARMERS’ SEASON

Taranaki Daily News, 18 June 1932, Page 9 (Supplement)

DAIRY FARMERS’ SEASON

INCREASE IN PRODUCTION

BALANCE AGAINST LOW I’KICES. PROGRESS IN THE URUTI VALLEY. Increased production has strongly in the balance against lone butter-fat prices and enabled tlle Valley Dairy Company to come throu o n a difficult year in a satisfactory manner. The company’s year was reviewed a» tho annual meeting of the suppliers. Mr. W. B. Lawrence presided oiei a stood attendance. , The payment for the year was repoi.ed to be U.76d per lb butter-fat. A final payment was announced at toe meeting of 213-16 d per lb from August 1 to April 30, inclusive, lhe total amount paid in the final bonus was £3240 3s 2d. . The cream percentages received dur in°- the season were: Finest 962 P cr cent., first 22 per cent., second i per In reviewing the season Mr. Lawrence congratulated shareholders on again having 0 a substantial increase in output. In the season 1928 they had manuiactured 14'5 tons of butter for which they received I'Sd pcr lb butter-fat, the Uta. amount paid to suppliers being U 9,000. During the past season their output had. reached 206 tons, a steady increase of 42 per cent, in four years. Although the pay-out per lb butter-fat was considerably lower, they had received about £lB 500, or nearly the same amount as they' received when the pay-out was Is 6d per Io butter-fat, from the same number of suppliers. •‘By the further use of feitihseis, more modern methods in farming and herd-testing,” said Mr. Lawrence, lam confident that this increase can an i will continue, and even though prices for our produce may not go to a very much higher level we will by these means get back to more prosperous times. We must not at the same time lose sight of quality. With increasing supplies from other producing countries, and nil .supplies going on to the same market it is essential that we supply cream of the best quality.”

IMPROVEMENT IN CREAM.

The cream received during the year had shown a further improvement on the previous year, and he was sure by exercising great care, . suppliers could improve their cream still fuitlier. Jn the past season several false hopes had been raised as regarded prices. About a year ago the market was steady a,t about U2s and steadily advanced until, early in November, buttm was being quoted at USe to 1-Os. lhat hardening of prices created a very optimistic feeling with dairy company directors and others connected with the trade, and, together with a slight improvement in the industrial position m Britain, engendered the opinion that, things were on the mend. However, that (vas not the case. As had happened before, probably due to heavy arrivals from Australia and New Zealand, a decline set in and since then prices have been up and down between 96s and 100 s. . r The early hardening of prices was duo to a temporary shortage of butter on i.he Continent, where they were having a late spring. That meant that taviils ,vcre temporarily raised, and butter was being shipped from England. Production in the Northern Hemisphere was soon cinder way again, and large quantities were then being exported. Prices again weakened and by the end of April butler was selling at 965. . About the middle of February the company’s directors were fortunate in being able to make an f.o.b. sale for the February-March make and buttei in store at lUd, the price being equivalent to that on the London market, which was quoted as firm at 108 s to On taking into consideration the world-wide depression and the uncertainty of everything, the directors considered it a better policy to make sure of UJd than run the risk of possibly having to accept a good deal less on consignment. A little later the April-May make was disposed of at the same price. So far those sales had been very satisfactory indeed, and bad been largely responsible for the pay-out. Had that butter gone on consignment so far it would have realised well under 100 s.

HOPE FOR THE FUTURE. '

“As regards the future no one ca,n foretell with any accuracy,” said the chairman. “We are hoping for great things as a result of the Ottawa, conference. At least I think we can rest assured that the outcome will much better trade relations between Empire countries, which will certainly be of benefit to producers. Although we are hoping for our prices to go up, we cannot expect very much while other foodstuffs such as meat and bacon can be bought so cheaply. Bacon is being retailed in England to-day at 5d per lb. Nevertheless in Britain the consumptive demand was never better than it is today. “So long as butter can be retailed at a low price the consumer will purchase it. The margarine trade has largely been displaced through this season. It is considered that butter has-so much displaced margarine that it will 'be bought in preference to margarine even at higher prices.” The chairman congratulated Mr. Haylock, the manager, and Mr. Jones, the former manager, on the good results they had achieved with their grades. The grade of 94.401 was indeed creditable, Mr. Haylock had taken over in the flush of the 'season, and although parts of the plant were more or less strange to him for a while, he carried on in the same capable manner as had Mr. Jones. The directors considered the company fortunate in securing the services of a good manager. One of the pleasing features of the balance-sheet was the very low cost of manufacture —l.Gld per lb butter-fat, or 1.30 d for butter, compared with I.SId and 1.45 d respectively last year. Increased tonnage, together with careful management, had kept overhead expenses down to a minimum. Any saving in that respect, of course, directly affected the pay-out. The ehairman thanked the co-dirce-tors, the secretary, the manager and staff for the very loyal support they had given him through a very anxious year. The retiring directors, Messrs W. Oxcnham and G. Murray, were both reelected.

Votes of thanks were passed by the suppliers, to the directors, secretary and staff for the efficient manner in which they had conducted the company's affaire.;.