NEW ZEALAND DAIRY COMPANY

Waikato Times, Volume 105, Issue 17786, 10 August 1929, Page 9

NEW ZEALAND DAIRY COMPANY

THE ANNUAL REPORT. GREATEST YEAR ON RECORD. BIG INCREASE IN PRODUCTION. The tenth annual report and balance sheet of the New Zealand Co-operative Dairy Company, reveals a very satisfactory state of affairs. The company ha 3 experienced an excellent year and the summary of Its operations, published below, will be read with Interest. The annual meeting of the company Is to be held in the Town Hall, Hamilton, on Wednesday, August 21, at 10.30 a.m.

Below is the annual report and bal- . ance sheet of the New Zealand Co- j operative Dairy Company:— ‘•ln presenting to you the tenth an- ' nual report and balance sheet' the directors are pleased to report the most successful season on record, this be- : Ing largely due to the loyal support accorded to the company by suppliers, together with favourable climatic conditions and reasonably good prices for the company’s produce. The outputs of the commodities manufactured by the company are as follows: — Butter: 1919-20 8717 tons; 192627, 25,772 tons; 1927-28, 26,072 tons; 1928-29, 27,195 tons. Cheese: 1919-20, 2549 tons; 192627, 5019 tons; 1927-28, 4250 tons; 1928-29, 5949 tons; Casein: 1919-20, 386 tons; 192627, 767 tons; 1927-28, 723 tons; 1928-29, 714 tons. Milk Powders: 1926-27,-4114 tons; 1927- 4110 tons; 1928-29, 4341 1 tons. | Condensed Milk: 1927-28, 183 tons; 1928- 934 tons. | For tire same years the following l table shows the.total value of the property and plant, and also capital issued and paid up: Land, Buildings and Plant: 1919-20, £405,823; 1926-27, 1,131,224*; 192728, £1,118,938*; 1928-29, £1,104,626*. Issued Capital: 1919-20, £290,068; 1926-27, 1,303,899; 1927-28, 1,348,525; 1928-29, £1,367.674. Paid-up Capital: 1919-29, £175,0.19, 1926-27, 1,000,039; 1927-28, £1,056,041; 1928-29, £1,087,531. ‘excluding Colliery. The high standi rd of quality of the company’s products has been maintained during the season and every opportunity to achieve even better results is being taken. It is gratifying to note that the efforts made by the company have been entirely successful. The policy of consigning butter and cheese for overseas markets has been followed by the company during the season. Adherence to this policy has in some instances resulted in slightly lower returns than have been obtained by f.o.b. sellers, although the ultimate result has been to maintain relatively stable prices throughout the !season. | On January 15, 1929, nine of the 1 company’s cheese factories commenced ; the manufacture of standardised cheese. ! The results have been so favourable I that your directors have decided to I discontinue the manufacture of full--1 cream cheese during the coming season and to manufacture only standardised cheese. New cheese factories at Te Puninga and Waitakaruru were | erected during the season and com- : mcnced the manufacture of cheese on | October 11, and December 11 respec--1 lively. I The company’s buildings, plant and | machinery have, during the year, been ;maintained in a state of thorough worki ing efficiency and are throughout in excellent condition. The Colliery has ben worked without appreciable loss of time and with successful results. The New Zealand Dairy Finance Co., Ltd., has. by the assistance rend- | ered to suppliers during the season, i been of considerable benefit to the ! parent company. The advantages ! arising from the Rural Intermediate j Credit scheme have been made available to a number of the company’s suppliers during the season, and the i advances from this source made up !to May 31 totalled £90,000. | The "stocks of dairy produce unsold I at the close of the season have been I valued for balance sheet purposes at reasonable prices. I The following figures briefly sum- ' m a rise the past season’s operations:— j Milk for buttermaking, 175,139,1031 b; ! milk for cheesemaking, 130,479,6131 b; ! cream for butter making, 105,187,14591 b; total butlerfat for butter mak- { ing, 50,229,0211 b; total butter made, | 60,916,8971 b; over-run, 21.28 per | cent.; total buttorfat used for checsci making, 5,185,7811 b; total cheese i made, 13,327,0841 b; casein made, 1,599,0651 b; millcpowders made 9,742,0491 b; condensed milk made, 2,092,6821 b.

The average price advanced for butterfat received for buttermaking during the season was 16.918 d. The total average price for butterfat of superfine grade will be 18.410(1. In addition the payments made by the company for subsidy on cream cartage and railage on cream amounted to

198 d thus further Increasing the verage price at central factories for uperflne butterfat to 18.608 d. Cheese actories will, in accordance with their espective manufacturing results, receive varying payments. All prices tated above are conditional upon un- I iold produce realising at sale the value I ilaccd upon it for balance purposes. ] Casein suppliers have, in addition j o butter payments, received an aver- j ;ge premium of 2.135 d per ib butter- j at. They will also be credited with 5d per lb butterfat share capital and j vill, as soon as possible, be paid in j :ash a bonus of .25d per lb butterfat. | Milk powder suppliers have, in ad- j lition to butter advance, received the j isual premiums for skim milk. The i unount to the credit of their profit j ind loss accounts for the past season] vill not be dealt with until a quantity j )f stock, equivalent to the season’s j ‘make’ has been realised and the final j imount available for v-redit to share capital is definitely known. Sharelolders will note that, as in past sea- ] sons, depreciation has not been writ- i ;en off milk powder factories, with the j ixceplion of milk haulage lorries, fhe plant has, however, been kept in ! i maximum state of efficiency and pre- j servation as a charge to working ex- ! penses. The following Directors retire by mtation this year:—Northern Electoral District: Mr J. B. McKinney, Bombay; South-Western Electoral District: Mr P. G. Blackett, Te Kowhai; SouthEastern Electoral District: Mr W. 11. Alien, Tirau; Thames Valley Electoral District (Pueroa Ward) : Mr G. Buchanan, Paeroa. Mr G. Buchanan, representing the Thames Valley Electoral District (Paeroa Ward) has been returned ■ unopposed. Elections will take place in other districts. Voting papers have been issued. Messrs T. C. Blackett and J. B. McKinney have intimated their intention of not seeking re-election. Mr Blackett, who is retiring owing to illhealth, has, since the inception of the company and its predecessor company, ably represented the south western district. Your directors dcsire to place on record their appreciation of tlie sterling service rendered by him to this company and to tlie dairying industry, his long experience and sound judgment having been at all times unsparingly given. The auditors, .Messrs Chambers, Worth and Chambers, offer themselves for re-election. The balance sheet is as follows: — Liabilities. Nominal capital—l,soo,ooo shares of £1 each, £1.500,000; less unallotted shares, £132,326; subscribed capital, £1,367,G74; less uncalled capital, £280,143 7s Id; paid up capital, £1,087,530 12s lid; reserve, £59,246 11s Id; insurance reserve, £6306 Os lOd; debentures, £30,000; amount due to- suppliers for May butterfat, £125,199 2s 3d; amount due to suppliers for bonus after allowing for share deductions £352,711 3s sd, less suppliers contra accounts £30,202 9s 2d, balance, £44,407 12s Gd; sundry creditors, £121,734 11s 2d; sundry depositors, £77,471 Is 2d; National Bank of N.Z., Ltd., £173,398 8s iOd; Bank of New Zealand, £83,993 17s 6d; National Bank of N.Z., Ltd, milk powder account, £10,382 12s 2d; Bank of New Zealand milk powder account. £7109 2s 5d ' (suppliers’ joint and several guarantees), Canadian Bank of Commerce, £2843 12s Gd; trading department profit and loss account, £49 10s. scl; total, £2,107,773 17s Od.

Assets. Property and plant £1,118,938 8s 4d, less depreciation £45,369 0s 4a, plus additions £31,056 15s 2d, less mortgages £1751 10s sd, balance, £1,102,874 12s 9d; milk powder preliminary expenses, £32,445 9s Id; Glen Afton Collieries Ltd. shares, £97,5G3 6s 7d; sundry debtors, including estimated surpluses from London, £183,102 13s 2d; loans to suppliers and sundry advances, £34,319 16s sd; investments, £117,527 13s 8d; stocks: Produce £440,032 13s 2d, stores £96,820 3s lOd, trading, £3087 8s lOd; total, £2,107,773 17s 6d.

Contingent Liabilities: Uncalled capital on investment shares, £59,750; guarantee Rural Intermediate Credit Board, £69,918 18s 7d; guarantee Lloyds’ Bank (maximum), £100,000; total, £229,6G8 18s 7d. Note. —The following debentures have been issued by the company: 150 of £IOOO securing the assets of the Waitoa milk powder group; 450 of £IOOO securing the balance of the company’s assets. 385 of tlie general debentures and all the milk powder debentures arc held by the company's bankers as security. Of tlie remaining 65 debentures, 35 have been surrendered and arc held by the company’s bankers for sate keeping.

Certificate of Over-run: In accordance with the provisions of Section 4 of the "Dairy Industry Amendment Act, 1922,” we certify that for the year ended May 31, J 929, (a) the weight of butter made from each pound of butterfat used for the manufacture of butter, including wlicy butter, was 1.21281b5; (b) the percentage which the weight of unsaltcd Putter manufactured bears to the total weight of butter manufactured, whey butter included, was 4.406 per cent.; (c) the weight of cheese made from each pound of butterfat for the manufacture of cheese was 2.6071b5. —Chambers, Worth and Chambers, Auditors.

BUTTER DEPARTMENT. Profit and Loss Account for Year Ended May 31, 1929. Expenditure.—To slock on hand at Mav 31 1928, £188,704 0s Gd; purchases,’£3,646,2so 4s 9d; railage of cream, £14,789 0s Gd; cartage of cream, £26,814 3s 8d; wages, sundry, factory expenses and maintenance, £137,341 14s 2d; power and fuel, £10,655 12s 9d; freight, and cartage. £51.003 1 1s lid; freezing, grading and shipping charges, £44.030 6s lid; bad debts. £9B 15s; depreciation, £17,028 is 7d: alive hi sin* and donations,

£2362 2s 8d; office and general administration expenses, £33,853 2s 4d, directors’ fees and expenses, _ £oO3G 12s sd; dairy control levy, £6522 18s 3d; balance to bonus account, £29-,-423 8s Gd; total, £4,474,973 18s lid. Receipts.—By sales, £4,150,595 11s 3d; rents, £3938 4s 3d; Challenge Phosphate Company’s rebate, £3a7o; interest, exchange and dividends, £l2 806 11s Gd; stocks of butter on hand at May 31, 1929, £304,063 lis lid; total, £4,474,973 18s lid. TRADING DEPARTMENT.

Profit and Loss Account. Expenditure. —To stock on hand at May 31, 1928, £664 0s Id; purchases, £13,200* 4s; wages, rent, office and general expenses, £5526 11s 4d, bad debts, £l7 19s 4d; transferred to profit and loss accounts, £2371 10s 10d, balance, £49 10s sd; total, £21,829 16s. Receipts.—By balance May 31, 1928, £22 3s 8d; sales, £14,954 2s 4d; gross profit on fertilisers, . £3 7 GG ls ,,~ d ’ stocks on hand May 31, 1929: Merchandise, £4BB 16s 10d; slag, £-o 12s; total, £21,829 16s.

GLEN AFTON COLLIERIES LTD, Balance Shoot. Liabilities. —Nominal capital: 100,000 shares of £1 each, £100,000; paid up capital, £100,000; debentures, £74,700; debenture reserve, £6000; deposits, £3015; sundry creditors, £12,331 Gs IOd; profit and loss appropriation account, £2255 8s 4d, total, £198,301 15s 2d. Assets.— Properties and plant, £134.367 15s 7d; stock of materials, £1799 19s 9d; sundry debtors, £18,739 \Gs 7d; contract deposits, £25; cash in hand and at banks, £1869 3s 3d, deposits, £41,500; total, £198,301 los 2d.

NEW ZEALAND DAIRY FINANCE COMPANY LIMITED. Balanco Sheet as at April 30, 1929. Liabilities. —Nominal capital: 75,000 shares of £ I each £75,000, less uncalled capital £50,000, paid up capital, £25,000; general and had debts reserve, £1300; sundry creditors, £3248 17s 4d; National Bank of New Zealand, Ltd., £23,272 3s Id; Bank of New Zealand, £2of6 7s 2d; profit and loss appropriation account, £1859 9s 9d; total, £56,696 17s 4d. Assets. — Advances outstanding, £56,635 J3s 3d; furniture and fittings, £52; casli in hand, £9 4s Id; total, £56,696 17s 4d.