MORRINSVILLE DAIRY COY.

Thames Star, Volume LXIV, Issue 17969, 19 August 1930, Page 6

MORRINSVILLE DAIRY COY.

ANNUAL MEETING A DIFFICULT SEASON CHAiIKiMAN REVTEWS OPERATIONS There was an attendance of nearly a hundred suppliers at the annual meeting of the Morrinsville DairyCompany, which was held on Monday. Mr J. E. Leeson, chairman of directors, presided. Commenting on the large gathering of suppliers, the chairman said it showed that as suppliers and shareholders they had a keen interest in the business which they owned. The production of the company for the season had increased from 1212 tons to 1577 tons of butter, an increase of 365 tons, or a ton a day throughout the year. Hafwever, although the season had (been remarkably fine for the supply of cream, it had not been good for the directors, owing to the fall in London prices for butter. It had been most difficult for the directors to sum up the position of the market, for they never knew whether to sell or whether to hold in the hope that prices would rise again. ,

Thanks to the low cost of production in the company's factory, they were able to finish up the season with the good payment of 1/4& per lb. for all butterfat supplied during the season. The advance payments had averaged 1/3, against 1/5J the previous season. Cream cartage bad cost id. per pound. A Bonus of Id per lb had been paid on July 20 and another bonus of id would be paid on August 20, This supplementary payment would be spread over the last months of the season, to make the payment for these last four months equal to l/2d per lb. The directors regretted they could not pay out the second bonus on the day of the annual meeting, but owing to so much produce being shipped late in accordance with the Dairy Control Board's policy of rationing the market, the company would not be able to pay out until August 20. SHARE CAPITAL The position of the company's capital' was Uncalled capital £16,540, paid up £15,185. If extra supply had not been secured since 1928 the position would have been uncalled £7OOO, paid up £14,000, and the annual share deduction could not have been reduced to id per lb so quickly. It was the security of the uncalled capital' that bankers looked at to finance the services of the company. REDUCTION IN COSTS Overhead costs, including general expenses, printing and stationary, salaries, insurance and rates and instruction 'had fallen from £1 13/10d in 1927 to £1 l/2d in 1930 per ton. Factory to f.o.b. costs per ton had been reduced as follows: 1927, £l4 15/8d; 1928, £l3 H6/8d; 1929, £l2 17/sd; 1930, £l2 7/lld. Last season's cost would have been reduced a further 10/- per ton but for increased storage charges due to the rationing of the London market.

During the last few months the company's fund for financing the purchase of stock, etc., had been called on very heavily by suppliers, and the directors would have to consider whether they should not have to restrict loans only to those wishing to increase the size of their herds or buy manure. The company had been able to refer a number of applications to the Morrinsville Rural Intermediate Credit Association, which by lending out money at 6£ per cent with easy repayments had 'given assistance in financingl farmers. The trading department's turnover was £17,004, compared with £IO,OOO the previous year, and the turnover of the department for financing the purchase of stock, etc., had increased from £7OOO to £IO,OOO. "Any forecasts made at the beginning of the season are usually falsified," said Mr Leeson, in expressing his hesitation about forecasting the prospects for the coming season. This time last year companies were being offered l/4*d for butterfat for early shipment, but this year buyers would offer only l/2d, and that only for the month of August. The low prices had put the speculator out of business. The most they could expect was l/3d per lb. this season. Mr Leeson formally moved the adoption of the balance-sheet. The retiring directors, Messrs. F. W. Seifert, F. West and J. H. Gaddes, were re-elected unopposed. The directors' remuneration for the year was fixed at £2BO.

Mr T. Ryan was re-elected auditor at the same salary as last year (£6O). A dividend of 6 per cent on paid up share capital was declared. The meeting concluded with votes of thanks to the chairman, directors, staff' and press.