DAIRY INDUSTRY

Waipukurau Press, Volume XXVIII, Issue 205, 24 August 1932, Page 6

DAIRY INDUSTRY

H ERE.TAUNGA COMPANY THE ANNUAL REPORT The annual report of the Heretaunga Dairy Co., discussed at a general meeting of shareholders and suppliers held in Waipukurau yesterday afternoon (already reported in the '‘Press”) was as follows: — Your directors have pleasure in placing before you the Fortieth Annual Report, Balance Sheet and Accounts. In regard to prices for butter, these have been very disappointing during the season. On two occasions we had hoped that the bottom had been reached and that prices would gradually improve. In view, however, of a probable satisfactory settlement of reparations, the conversion of the two thousand million War loan at Home and the present negotiations at the Ottawa Conference, there is a feeling that prospects for the coming season are considerably brighter. Although payments for butter-fat during the past year have been low; the fact that, largely owing to the good autumn, the output of our two factories totalled 2,101 tons as against 1,619 tons for the previous season, the cash payments to suppliers should show an equal if not better return than last year. The butter-fat payments for the season for finest cream were: —July, August and September lOd; October lid; November lOd; December to June 9d. The bonuses recommended by the directors are: — (1) That the bonus be 1 l-4d. to shareholders who supplied over 300 lbs. of butter-fat; (2) That the bonus be Id. to shareholders who supplied under 3001bs. of butter-fat; (3) That the bonus be §d. to nonshareholders who supplied over 300 lbs. of butter-fat. The bonuses will be paid over the whole 12 months, and the usual deductions will be made for shares held by “B ’ shareholders.

The bonus payments as above, together with the usual dividend of < per cent on the paid-up capital will absorb £20,325 of £24,850 standing to the credit of profit and loss appropriation account. Of the balance it is proposed to pay our London agents the sum of £402 5 in reduction of the reclamation on the 192 9/30 season, to increase the reserve fund to £0,500 and to carry the balance forward to next year. The per centage of the three grades of cream received during the season are:—Finest, 76.65 pei cent., First, 22.45 per cent.; Second, .9 per cent. These grading figures do not show as well as the previous year and with the present condition of the Home market, where the quality article is the one in demand, it is very necessary that we maintain the present standard of grading; and suppliers should all endeavour to give us only the finest grade of cream —this quite apart from the difference in payment as shown above. During the year the directors have held 12 ordinary meetings and 11 special meetings. The retiring directors on this occasion are Messrs. H. H. Burns, G. C. Lowe and A. L. Malcolm, who being eligible, offer themselves for reelection. The company’s auditor, Mr. J. A. Fraser, also offers himself for re-election. The profit and loss account showed a surplus of £24,650 3s 7d. Importance of Trading Mr. W. A. Tims, factory manager, dealt with the importance of grading, which was a considerable factor in improving the quality of the cream and consequently of the butter. He urged that the suppliers should not relax their efforts to keep up their grading by employing the proper methods of cooling, and by not pouring hot cream on top of cold. In reply to Mr. Cook, the chairman said that the decrease in the local sales was not in any way due to a falling off in quality. Butter, which was being sold in opposition to the local product had been bought over the counter and compared with Heretaunga butter, and had been found to be inferior. He urged suppliers to support their local company in every possible way.

Mr. J. A. Kerr said that the suppliers were very grateful to the directors for coming to Waipukurau and allowing an open discussion. He proposed a very hearty vote of thanks, which was carried by acclamation.