DAIRY INDUSTRY

Waikato Times, Volume 118, Issue 19637, 25 July 1935, Page 2

DAIRY INDUSTRY

TE AWAMUTU COMPANY.'

REPORT OF DIRECTORS,

DRY WEATHER AFFECTS OUTPUT,

The,annual report of the directors of the Te Awamutu Co-operative Dairy Company, Limited, to be presented at the tenth ordinary meeting of the company at Te Awamutu to-morrow, records a slight fall in output for the year.

Although the season was commenced with an Increase of over 800 additional cows, the dry spell in January and February was felt so severely in this part of the province that the company’s output showed a decrease over the previous year. For the 12 months ended May 31, 1935,,: the company made 1504 tons of butter, compared with 1638 tons for the previous year. Six years ago the ’company’s bankers (the .Union Bank of Australia, Limited) to ok Qy.eir. the mortgage on the company’s land, buildings, plant and machinery, amounting to £5750. The board had adhered to the policy of reducing this mortgage annually, and in November last the company made the final payment of £750 under this heading. New plant amounting to £3500 had been installed during the season without the necessity of making any special arrangements with the company’s bankers. Adequate depreciation had been written off the company’s buildings and plant, which noyv stood in the balance-sheet at approximately £17,000.

Resumption of Share Capital.

During'the past, year the ' company had resumed 1823 shares, paid up to £1385 11s 7d. In all cases where the suppliers gave up dairying, the shares had been resumed at the full face value of 20s in the £. The share capital resumed by the company to date was 8128 shares, paid up to £4707 18s lOd. The directors had again decided to pay 5 per cent, dividend on all paid-up share capital held at the beginning of the season. Although handicapped by a smaller output, the manufacturing and overhead costs for the season were the lowest on record for the company, while the company’s “all-in costs to f.0.t0.”' had been reduced during the past live years.

Faotory Grounds.

Considerable improvements of a permanent nature had been made to the factory grounds during the season, including the tar-sealing of-the roadway and the planting of trees in the swamp on the company’s grounds behind the faotory. This work would ultimately save the annual expense incurred in clearing the grounds of blackberry and noxious .weeds.’ Many suppliers had expressed appreciation 1 of. the clean and tidy manner In which the factory grounds were kept and the small expense incurred in this connection was well warranted.

Payment for Season.

The company’s average ..cash advance payment during the season to 7.91 d, this being the average over all' grades. The following additional payments were being made by the company: (1) A shareholders’ cash bonus of id per lb on all butter-fat covered by fully-paid shares; (2) a dividend of 5 per cent, on paid-up •share capital; (3) a supplementary payment of Id per lb on’ September, October, February, March and April supply; (4) a supplementary payment of id per lb on November, December and May supply. The total average payment for flnest-quality cream, including cream cartage was 9.61 d. The retiring directors, Messrs Chas. M. Alexander and G. Spinley, together, with Mr W. F. Woodward, had been nominated as candidates for the two vacancies and a postal ballot was now being held.

MORRINSVILLE COMPANY.

DECREASE IN OUTPUT RECORDED

A slight reduction was also recorded in the output of the Morrinsvllle Cooperative Dairy Company, Limited, for the last season according to the annual report of the • directors of that company to be presented at the 13th annual meeting of the company, to be held in Morrinsville next Wednesday.

As with the Te Awamutu Company the drop in output is attributed to the prolonged spell of dry weather experienced in the summer and early autumn. The company manufactured 2916 tons in 1934-35, as against 3053 tons in 1933-34. This was the first time in the'history of the company that decrease in production had been recorded.

A bonus of Ad per lb bad been distributed to the suppliers and a further 2d per lb would be paid out on August 31, bringing the total payment for the season up to 9.7 d ! per lb. A dividend on paid-up capital at the rate of 3J per cent, per annum was recommended by the directors. The directors retiring by rotation, Messrs J. E. Leeson, F. C. Kennedy and W. Findlay, offer themselves for reelection.