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DAIRY INDUSTRY

MEETING OF SHAREHOLDERS. NEW ZEALAND FARMERS’ DAIRY UNION. PAST YEAR’S OPERATIONS. The annual meeting of shareholders of tho New Zealand Farmers’ Dairy Union was held this afternoon, Mr J. A. Nash, M.P., chairman of directors, presiding. “On behalf of your directors, I desire to make a few references to tho affairs of the company and the past year’s operations,” said the chairman in moving the adoption of the annual report. “This company has always adopted a policy of consigning and competing in the world’s markets. In some cases, where prices were high, our shipments arrived too late to receive the advantage, owing to the sudden drop in prices, tho ruling rates being 162 s to 186's, our average gross price being 173 s sd. This figure, a 3 set out in what is known as Duncan's table, shows that tho average payment to suppliers should bo 16 6d per lb. of butter-fat, and this has been tho case with our company. “An item of £6B 12s 4d will be noticed on the working account credit side; this represents money lost to suppliers by sending in cream too thin, and is a penalty imposed by Government regulation. This is an avoidable matter, and I would again impress upon suppliers the importance of getting their cream test above 35 per cent. The same applies to cream grading. Nearly 25 per . cent of cream went Ist and 2nd grade; consequently the suppliers lost id per lb on Ist and lid on the 2nd grade. Therefore the company’s average pay-out is affected, so that I would urge suppliers to take special notice of these points and endeavour to rectify same this year. None of the other items in the bal-ance-sheet calls for special attention, all being afiout the usual average. The working expenses per pound could, of course, be reduced by an increased turn-over, and it is pleasing to bo able to report that this will be brought about in a very large measure this season. We havo a large number of new suppliers and several old suppliers are linking up with our company again. COMPETITION OF COMPANIES. “Last year I referred to flip loss made to farmers through the competition of companies against each other, and the expense for haulage of cream, and it stands to reason that in a district where there is only a fixed quantity of fat available, the more companies handling it the greater tho cost, and the smaller return to the farmer. Yet we hear of further factories being opened which will further add to the difficulties that some companies are experiencing, causing them to go further afield for their supply. Within a radius of 30 miles of Palmerston North there are no less than 17 butter and 21 cheese factories. The estimated output of these 38 factories is about 10,000 tons of butter and about 6,000 tons of cheese, and the approximate estimate for carrying them is about £224,000. so that the produce of the farmer is well catered for, and we should aim at reducing tho costs rather than increasing them. VALUED SERVICES. “I also desire to refer to the valued services rendered by our late manager, Mr A. Morgan, who recently retired after 35 years of faithful service to the company and suppliers. We all join in wishing Mr Morgan many years of health and happiness. Mr Morgan has been succeeded by Mr G. Mills, of Hawera, and he is making excellent progress and taking a keen interest in the welfare of the company. Our secretary, Mr W, E. Bendall, has been laid aside on several occasions during the past year with illness, and we wish him a speedy recovery to good health. “We claim that our company was the first to pay out its bonus to suppliers. Our thanks are due to the factory, office and lorry staff for their efforts on behalf of the company during the past year.” Mr Sexton enquired why the company’s pa.y-out was less than other local factories last year. The chairman replied that it depended upon circumstances. The company had from its inception consigned their butter and that was their policy. It so happened that last year was good selling year and had they sold some of the butter on the local market they would have done much better. On the other hand, in some years they would lose by selling on the local market. The price they had received had been the average price for home sales. Mr F. Maul added that their London agent had advised them to sell at home. The chairman continued that a few days ago they had been offered Is 4Jd per lb, but the directors had decided not to sell at that. They had just afterwards received an offer of Is 5Jd for the English market which they had accepted. Some other factories had taken Is 4Jd. In reply to an enquiry with reference to tho dairy instructor, Mr Nash stated that tho expenditure under this head was well justified. Instruction was doing a great deal for tho industry and in many cases first or second grade had been raised to finest by the direct result of his efforts. It was money well spent. Tho difficulty in getting finest grade was due to the condition of a farmer’s plant or property, and the instructors could give valuable advice. They were working in the interests of tho farmer. Coming back to the question of a lower pay-out than some other local factories. Mr Hubbard asked if that was possibly due to overhead expenses due to, the factory not handling up to its utmost capacity. The chairman confirmed this view and stated that the plant could handle up to 1000 tons. Ho was pleased to be able to say that there would be an increased number of suppliers this year. Mr Nash added that suppliers were welcome to come and inspect the factory whenever convenient. In reply to another question, Mr Nash stated that he was going into adjustments of the collection routes. The report and balance-sheet were adopted with no further discussion. ELECTION OF DIRECTORS. Messrs J. A. Nash and H. Freeman (Otaki), retiring directors, were re-elected. Mr E. G. Sim was re-appointed auditor.

Permanent link to this item
Hononga pūmau ki tēnei tūemi

https://paperspast.natlib.govt.nz/newspapers/MS19290914.2.139

Bibliographic details
Ngā taipitopito pukapuka

Manawatu Standard, Volume XLIX, Issue 245, 14 September 1929, Page 10

Word count
Tapeke kupu
1,044

DAIRY INDUSTRY Manawatu Standard, Volume XLIX, Issue 245, 14 September 1929, Page 10

DAIRY INDUSTRY Manawatu Standard, Volume XLIX, Issue 245, 14 September 1929, Page 10

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