DAIRY COMPANY HAS A BIG CREDIT BALANCE.

Star (Christchurch), Issue 18576, 26 September 1928, Page 11

DAIRY COMPANY HAS A BIG CREDIT BALANCE.

THIS SEASON SHOULD BE BRIGHTER THAN 1927. At the thirty-sixth annual meeting of the Canterbury Central Co-operative Dairy Company to-day, it was announced that the balance-sheet showed a credit balance of £22,311. The chairman said that the indications for the present season appeared much brighter than the past season. Mr H. T. Chapman, chairman of directors. presided, and about thirty-five shareholders attended. Directors’ Report. The directors, in their annual report, stated that the balance-sheet showed a credit balance of £22,311 11s 3d, which the directors recommended should be dealt with as follows;—To pay 7 per cent dividend on subscribed capital at July 31, 1928; to write £1719 off buildings, machinery, plant, etc.; to make a final payment of 2d per lb on butterfat supplied during the vear. which will be included with payment for September supply; to pay a bonus on wages and salaries; the balance to"be carried forward. “ It is gratifying,” the report stated, “to record that the butter manufactured during the year shows an ’ increase of 103 tons. The butter manufactured for the year was 1245 tons. The proposed final payment of 2d per lb makes the average price per lb of butter-fat for finest grade cream Is 5.05 d. We have to advise that, in accordance with the Dairy Industry Amendment Act, 1922, Clause 4, Section 1, Sub-section A, the weight of butter, correct to four places of decimals, made from each pound of butter-fat used for the manufacture of butter for the year ending Jifly 31, 1928, is 1.21851 b. In regard to Sub-section B, the percentage which the weight of unsalted butter manufactured bears to the total weight of butter manufactured is 3.95 per cent.” The profit and loss account to July 31, 1928, showed general expenses £32,639 15s 4d, including salaries and wages £12,029 14s 7d; railage, £3557 Is 6d; fuel and electric power, £llßs 10s 7d; butter-boxes and parchment paper, £3759 14s; freezing charges, £1599 Is 3d; advertising, £450 5s 7d; rates and taxes, £241 5s 7d; repairs and maintenance, cartage and incidental expenses, £7566 19s 6d; bad and doubtful debts, £193 9s lOd. On the other side were;—Balance from profit and loss account, July 31, 1927, £29,199 8s lOd, less dividend, amount written off buildings and machinery, final payment to suppliers, £28,939 10s 3d, leaving £259 ISs 7d; transfer fees, £3; rent from cottages, £277 2s 6d; interest-, £246 12s 8d; balance of .sales account,£s4,l64 12s lOd; total,. 54.691 Ss. The balance-sheet showed.:— To capital account, £13,156; reserve account, £6376 19s 3d; sundry creditors, £3742; balance, £22.311 Ms 3d; total, £43,586 10s 7d. By land, buildings, machinery and plant and railway siding, £17,389 4s 7d: butter stock and general stores, £10,584 10s 9d; sundry debtors, £12,146 9s Id; war and soldiers’ settlement loans, £3000; National Bank, £l6O 6s 2d; total, £43,586 10s 7d. Chairman’s Address. The chairman, moving the adoption of the report and balance-sheet, said that those present last year would remember that he predicted satisfactory returns for early shipments to the London market. He was sorry to say that, owing to over-carried stocks iin London competing with the new season’s arrival, a lower level of prices was received for the earlier shipments. . Fortunately, the market recovered during the latter end of the season. While the climatic conditions were not altogether favourable for dairying, the spring being wet and late, the increase of manufacture over , the past year was 103 tons of. butter, which was the third largest output in the history of the company. With the proposed final payment of 2d per lb, the average price per lb of butterfat for finest grade cream was Is 5.05 d, against Is 4.2 d for the previous year. In taking into consideration. the lower final payment, suppliers must not overlook the fact that the average payment per lb of butterfat over the season was Is 3d, against Is Id the previous year. The total amount paid to suppliers, including the proposed 2d per lb final payment, would be £161,679. The cash receipts for the year were £200,047 13s Bd. Since the introduction of compulsor\grading, there had been a great deal of dissatisfaction amongst suppliers. The directors were of the opinion that finest grade should be done away with and a standard set for first and second grade cream only. A resolution was moved in this direction at the recent conferences of the North and South Island Dairy Associations, but was defeated. While the three grades were in existence suppliers must not overlook the fact that factories who did not carry out the grading of cream strictly to the letter were liable to a heavy fine. The number of suppliers showed a steady increase each year. In 1925-26 there were 1380, in 1926-27 1410, and in 1927-28 1505. Strict attention had been given to the machinery and plant. The directors had arranged for the installation this year of a large up-to-date churn, having a churning capacity of 22401bs of butter. He impressed upon suppliers the advantage of herd-testing, and the importance of joining up with the local Herd-Testing Association, or to test through the company. With the general adoption of herd-testing and the use of dressing manures, he said, an increased production must result. The handling of surplus calves was steadily increasing. Owing to the poor support last year by way of calves from suppliers in the Canterbury district, the scheme was not gone on with, a* J it was not intended to further that matter this year. At the same time there was no reason why the business should not be as successful in Canterbury as in other parts of the Dominion, providing suppliers were prepared to support the scheme. Indications for the present season appeared much brighter than last year, for the reason that stocks at Home were small in comparison with other years. In addition, very favourable offers had been made and were still being made, for shipments up to February. Taking all things into consideration, he thought that they could look forward to a higher return than was obtained last year. The report and balance-sheet were adopted, after some discussion. Messrs Chapman, J. W. Kime, and A. Quigley were again elected direqs : tors, and Mr J. W. K. Lawrence was * re-elected auditor. Congratulations. “The year has been a most successful one,” Mr D. J. Hawke said, in moving a hearty vote of thanks to the directors. “We have no complaints. We have complete confidence in the old directors.” The motion was carried with applause. A vote of thanks was passed to the company’s employees, whose ability and courtesy were praised.