SUCCESSFUL DAIRYING

Waikato Times, Volume 119, Issue 19945, 23 July 1936, Page 2

SUCCESSFUL DAIRYING

TE AWAMUTU COMPANY. PAST YEAR IN REVIEW. RECORD BUTTER OUTPUT. , (Times Represenlative.) TE AWAMUTU, Thursday. | With an Increase in the amount of< butter manufactured and a consider- I able decrease in the manufacturing and overhead costs the report for the 10th year of the Te Awamutu Dairy Company's operations discloses a most successful year. The report, which covers the 12 months ended May 31, 1936, is to be presented at the annual . meeting of shareholders in Te Awamutu on August 3. “ The quantity of butter manufactured during the year exceeded all previous years,” said Mr C. M. Alexander, chairman of the board of directors, in the report. “The output was 1681 tons 2cwt. compared with 1504 tons lowt. in 1 lie previous year, showing an increase of llj| per cent. During the year the company resumed 3248 shares paid up to £1387 6s Dd. In all cases where the suppliers gave up dairying the shares were resumed at the full face value of 20s in the £. The Share capital resumed by the company to dato is i 1,370 shares paid up to £6005 3s 7d. The directors have again decided to pay a dividend of 5 per cent on all paid-up share capital held at the beginning of the season.” Low Manufacturing Costs. The company’s manufacturing and overhead costs were the lowest on record, and showed a decrease on the previous year of 13s 2d per ton. Of this saving, 6s 8d per ton was made in wages, boxes, supplies, and other direct faotory charges; 3s 9d per ton was saved in storage charges; and the saving in oQlce overhead charges was 2s 9d per ton. In the’ 1935-36 season the manufacturing charges were £5 12s 3d per ton compared with £5 18s lid per ton In 1934-35. Charges to f.o.b. were £3 11s 5d as against £3 15s 2d. while the overhead (including depreciation) figures were £1 6s lUd and £1 9s 7d per ton for the respective seasons. In view of the fact that the distance from the port involved a railway charge of £1 12s 6d per ton, it was highly satisfactory that the company could place' Its butter f.o.b. at an "all-in cost” of Id per lb. This was the last year, however, in which those low fTgures would be recorded, and shareholders must look for a sharp rise in all factory costs from now on. On prices quoted for their next year’s supply of butter-boxes, the company anticipated an increase of £I3OO in this item alone. If an attempt were made to bring dairy factory hours in line with other industries, it would be necessary to augment the factory staff considerably, and most factory requisites would show substantial Increases. The whole of the plant was in a high state of efficiency. The company’s fixed assets had been well written down by depreciation, and stood at £17,000. The mortgage obtained on the buildings and plant by way of overdraft had been cleared over 12 months ago. The directors hnd decided to replace the two present boilers with a 75 h.p. multi-tubular boiler and a mechanical stoker, and they anticipated a considerable reduction In the quantity of fuel used in the coming Mason. Summary of vear’s Operations. A summary of the year’s manufacturing operations showed that 7,836.2031 b. of cream bad been received. The amounts of butter-fat received were as follows:—Finest grade, 2,567,9361 b. 83.09 per cent); first grade, 516,936 (16.73 per cent); second grade. 5442 0.18 per cent), making a total receipt of butter-fat of 3.089,4521 b. \ total of 3,765,6991 b. of butter had been made. The overrun had been 21.89 per cent, the average cream test, 39. !5 per cent, and the average butter grade 92.71 per pent. The prolific growth of last season, while beneficial to ttie output, was somewhat detrimental to the quality of the cream, and the company showed this season the highest percentage of first-grade cream (IGf per cent) for any yepr since they commenced. During the season they were asked to co-operate with the Department of Scientific and Industrial Research in an investigation Into feed flavours In the Waikato. The results of these researches would be published shortly. “ Our average cash advance payment for the season, over all grades, amounted to 10.5’id, compared with 7.9 hi for the previous year," said tho report. This figure includes the supplementary payment made in January Inst of 4d per lb. on June and July supply, and 3d on August. bringing the rash payment for these three months to Is 2d. The surplus available for distribution at the annual meeting amounts to £25.789. and the directors have decided to distribute this as follows: — I) Payment of a dividend of 5 per cent on all paid-up share capital In the company’s books at the beginning of the financial year—namely. June i. 1935; 2 a cash payment tc shareholders as follows: —Ad per lb. on June. July. August and September: Id per lb. on October; 2ld per tb. on November, December, January, February and March: 2d per lb. on April; hi per lb. on May.” Shareholders whose shares were fully paid would receive these amounts d cash SI it’ Iders who wi ro hdd Ing both fully-paid and partly-paid shares would receive the above payments in cash on nil butler-fat covered by full.' -paid share*. In the case of parilv-1 it s in there would be a deduction of Id per lb. on the above payments on ill butler fat covered by partly-pa'd shares, and this call of Jd per tb. would be placed to the credit of the suppliers’ share capital in the company. The company’s average payment for ttie season, for finest quality cream, Including cream carlaue, was ts 1.13 d The average payment over all grades, and not Including cream enringe was 12.3 id. Unsold slocks hnd been taken Into account at figures well below current qiiolallons. concluded the year's