Farm and Garden.

Waipa Post, Volume VII, Issue 334, 28 July 1914, Page 8

Farm and Garden.

DAIRYING

ANNUAL REPORT OF N.Z. DAIRY ASSOCIATION.

The general manager of the New Zealand Dairy Association, in his annual report, says:

The financial year which closed on the 30th June was the biggest the Association has experienced. The Association’s phenomenal development has been a source of very great satisfaction to its shareholders, who are to-day a more united company than ever before.

During the year 11,343.5 12 pounds of butter were manufactured, this being „an increase of 1,218,638 pounds, or 544 tons, over the preceding year. The unfortunate strike which broke out. in October last caused a congestion in the butter market, ..which seriously militated against the year’s returns. It has been estimated that, but for this trouble, the Dominion’s returns for butterfat would have been larger to the extent of at least V 2 d per pound. Notwithstanding this disadvantage, the Association’s results for the year have' been good. Business with Canada, the United States, and Africa has materially contributed thereto. Our chairman, Mr Spragg, visited America and Europe during the past season, and carefully investigated the marketing conditions of New Zealand dairy produce in.general, but particularly the distribution of the Association’s butter. Mr Spragg arrived in England during a time of stress and nrarketrng anxiety. His presence in England at the time greatly aided the„ past season’s business, and his careful investigation of.the many other matters in which the Association is interested will materially add to its future advantage, and will aid its future policy and organisation. lam directed by the board of'directors to record its cordial appreciation of Mr Spragg’s services to the Association during his recent visit.

The annual balance has just been completed, and I have pleasure in congratulating the Association’s suppliers upon another year of prosperity, notwithstanding the disadvantage referred to. On our recent visits to creamery centres I had the pleasure of meeting our shareholders, and comparing with them the Association’s expected strict average payment for the past season with the returns of rival interests, and such comparisons were greatly to the advantage of this Association. Since then the balance sheet results are available, and the Association’s returns are even better than was indicated by the forecast at creamery meetings. Provision has been made for maintenance, repairs, and depreciation, also "quantity”. bonus, the balance on which account amounts to £9,939 10s 2d. The rate of quantity bonus at the group of largest 11 creameries is j%d perpound, as per conditions of supply. After making these provisions there is £20,015 2s 3d available for further distribution. Of this substantial sum, approximately £4,481 13s 3d will be appropriated for dividend of 6 per cent upon paid-up capital in respect of shares allotted up to and including 3lst March last. This dividend upon first and second issue shares is equivalent to almost exactly %d per pound butterfat on the basis of 2401bs per share.

A further sum of £15,052 10s has been set aside to cover an additional payment of J&d per lb upon butterfat supplied during the -year, and will be paid to shareholders who, on sth August next, hold one share for each 240 pounds of butterfat, or portion thereof, supplied during the season. For the year ending 30th June, the average total of all butterfat payments to share-holder-suppliers at our group of largest creameries is 12.338 d per pound (over 125.16 d). This is a strict average payment on the basis of the whole year’s supply, not merely a rough and fallacious one.

In addition, the skim milk has belonged to suppliers without deduction, and the rate as quoted is a net average, all cartage and other transport charges being borne by the Association. Where skim milk has been used for casein, an additional U4d for butterfat has been paid, plus the return to suppliers of fortified casein whey, which is accepted as a good feeding proposition. The shareholder-suppliers to our smaller creameries will receive proportionately less, according to the amount of their quantity bonus.

In some districts our cream suppliers have been misled by statements that the Association will not receive cream i'n future ; and in other districts the suppliers have been perturbed by reports that the, local creamery would be closed. There is reason

to behave that such reports are circulated by persons who have

business interests to serve by

misleading our suppliers. We ask suppliers not to give credence to such statements. The Association will in the future, as in the past, receive either milk or cream, as desired by the suppliers, and all creameries will be opened on due date, except where official notice to the contrary has been given by me. For the months of July and August the advance payment will be at the rate of 12%d per lb butterfat. In each case the shareholder’s bonus will be added under the usual conditions. • For thfe month of September the rate to be advanced at the group of our largest creameries will be is per lb butterfat, which will include id per lb on account of quantity bonus, in terms or conditions of supply. At smaller creameries the rate of advance for September will be proportionately less, according to the quantity bonus which will be earned in terms of conditions of supply. These advances will be subject to the addition of profit bonus under usual conditions, and the supply from September to May will also be subject to the addition of.such further sum as will accrue on account of "quantity bonus.” The advance for the balance of the season will be notified in due' course. Suppliers can depend upon this being on a generous scale.

Creameries will be opened for the coming season about the same date as they opened last season, unless the suppliers in the district desire an alteration, in which event they are requested to communicate their wish to the general manager.