OVER 9D IN DRY SEASON

Taranaki Daily News, 2 August 1935, Page 11

OVER 9D IN DRY SEASON

MOKAU DAIRY PAYMENT AVERAGE GRADE REACHES 93.57. QUESTION OF ELECTRIC POWER. Although the Mokau district was one that suffered.from the. exceptional dry? mess of the summer the Mokau Dairy Company's output, the directors reported to the annual meeting, showed a decrease for'the first time in' its 15 years’ existence, but fell only.B' per cent. The average payment .for 172'/2 tons of butter marketed, it was expected, would be about 9%d a pound butterfat. Mr. L. R. Jones, chairman of directors, presided over a 'good attendance. Weather for dairying . during the past ? season had been fair, stated the report. An exceptionally dry summer .militated against supply, but a mild autumn brought improved rainfall, making the result of the season more satisfactory than was expected. Production figures were: Cream received, 877,6261 b; butterfat, 351,6091 b; average test, 40.06; butter, 43^, 2471 b; cost of manufacture, 1.16 d; management, .55d, to fo.b., .17d; depreciation, .13d; total cost, 2.01 d. In addition 15,0821 b of butterfat was supplied to the North Taranaki Company in June,. July and August during factory alterations. A total of £12,646 Ils lOd had been paid to suppliers, being equal to an average payment of 8.63 d. The sum of £2OO had been written off for depreciation and there was a balance of £307 7s 3d. All butter made to February 22 had been taken into account. An ' advance of 7¥<d had been made on 1173 boxes of butter afloat on consignment and the remaining 833 boxes in cool store had been sold at 10 7-Bd. An additional payment of l£d a pound on December and February supplies and Id a pound on March and April had been authorised, bringing the payment to 8.93 d. A further payment would be made, which would probably bring the total to 9!4d or more. ‘ . There was a decrease of 8 per cent, in the butterfat production; the first occasion during the 15 years of the company’s’ existence ■ that it had shown a falling-off, said the chairman in moving the adoption of the report and balancesheet. Although the . season was particularly dry in all parts of New Zealand some districts suffered more than others. Mokau missed many of pre intermittent thunder storms from Christmas onwards, whereas the Okau, district, only a few miles away, had substantial rainfalls, the Okau company’s output consequently showing an increase. POLICY OF CONSIGNING. During the major part of the year the company followed its usual policy of consigning the whole of the output. Four shipments, comprising 656 boxes, had just arrived and. would net about 90s per cwt.' The advance made was 7 Vid a pound—equal to 64s per cwt. The remainder of the season’s output was sold at 10 l-8d a pound f.o.b. ocean steamer. The market price for butter showed fluctuations throughout the season, but hot to the same extent as during the previous year. Speculative buying of small quantities of unshipped butter occurred throughout the season, but. the prices offered did’ not attract the directors sufficiently, for them to sell. To date the average payment for the year was 8.93 d. He was not in a position to say what the final average payment would be, but it seemed it would reach considerably more than 9d a pound butterfat. ' The extensions to the factory were completed. early m ■ August, and the manager was able to .commence receiving cream on - August 17. -. The capital expenditure in connection with the alterations to the factory, was: Buildings, i £2215 Ils• 7d; plant, £615 18s 4d; total, £2837 9s lid. The directors were also able to purchase for . £76 half an acre of land adjoining the factory site, which would be valuable to the company in the future. ■ ' . ’ The quality of the butter had shown a further improvement. For 1933-34 the average grade was 93.06, whereas for 1934-35 it was 96.57. -The total cost of manufacture increased from 1.82 d a pound butterfat to 2.Gld. This was primarily due to the reduction in supply and a similar state .-of affairs was revealed in the balance-sheets of- a number, of other dairy factories. The company’s aim was the daily collection of cream, which would play a big part in obtaining the very best quality. Every part of the plant was thoroughly overhauled before re-erection and was now in first class condition. For some years ahead it was hoped to see reduc- ' tions in that item of expenditure. Wear and tear should also be lighter. “I do not feel I am competent to forecast the future,” concluded Mr. Jones, “but there is a feeling of optimism throughout the Empire, and prices generally, including those received for dairy produce, show unmistakeable signs of rising to a higher level.” Messrs. T. Radford, W. N. Ordish and M; Waterson, retiring directors, were.reelected unopposed. Mr. E. P. Webster was reappointed auditor. ~ Mr. Webster referred to various aspects of the company’s operations, and suggested that some depreciation be written off the various assets at a slightly higher rate in the future. He congratulated the shareholders bn the possession of a splendid new factory and pointed out ’ that the balance-sheet was being made up of larger figures. ■. DANGER OF ABSORPTION. Several small companies which had been striving for years to pay well were now up . against it,' said Mr. Webster, and. were in danger of absorption by larger companies. Zoning might help them, hut S 'his advice was not to wait for zoning but to keep the -house in order all the time, write down , the assets con- ■ etantly and thus reduce capital debts. “If you do that you have nothing to fear,” he concluded. “If you do not you may have something to fear as long as your neighbours adopt good, sound policies.” , Suppliers commented on the soundness of Mr. Webster’s remarks. (Shareholders were later addressed by Messrs. R. Boddy and F. H, Harvey, chairman and engineer respectively of he Wairiri Electric. Power Board, and Mr. R.'W. Neal, chairman of the Pio Pio Dairy Company, concerning a proposition to electrify the Mokau factory. Several questions were asked by share-, holders and the manager, . Mr. C. J. Vezey, expressed the opinion that it' would be more economical to install separate power units for the machines. He . would prefer electricity to steam for working conditions. The chairman suggested that the matter should- be referred to the directors. His proposal was that the directors should visit the Pio Ro and Aria factories, obtain’ 'more' particulars concerning comparative electricity and steam fuel costs, from other factories and a further general meeting of shareholders -in the near future. Mr. J. N. Bryant pointed out that there had been no hesitation about wanting the reticulation of the old factory, and. he. did not see why there should be now the company had an up-to-date building and plant. Electricity was the coming power. He moved as an amendment that a ballot on the question of the installation, be taken among the suppliers at the meeting. Mr. W. McKeown said tnere nad been rumours that the Wairiri board had not enough power.

Mr. Boddy y said the rumours had arisen through one sheep farmer having installed a motor that was not powerful enough for its work. Mr. Bryant eventually withdrew his amendment and the directors were instructed tp visit Pio. Pio and Aria, the secretary to obtain statistics from other Taranaki companies. Votes of thanks to the staff and to the Mokau branch’ of the Women’s Division of the Farmers’ Union, for providing afternoon tea, were carried. Mr. Jones -was re-elected chairman of directors. V■: