LEVIN DAIRY CO.

Manawatu Standard, Volume LVII, Issue 204, 30 July 1937, Page 5

LEVIN DAIRY CO.

ANNUAL MEETING. SEASON’S PAYMENT HIGHER. Tlie annual meeting of the shareholders of the Levin Dairy Company was held on Wednesday, there being a large attendance. The chairman of directors (Mr S. A. Broadbelt) presided.

The report read as follows: —“Since our last report and balance-sheet we were able to make a further payment of .289 d per lb on butterfat, bringing the average for all grades for the 1935-1936 season to 12.788 d per lb. On August 1, 1936, the guaranteed price of 12.9-lGths pence per lb was announced by the Government, the Primary Products Marketing Department paying for all butter exported at the above price, plus a premium of Is 2d per cwt for butter grading 94 points and over. From August 1 the company has paid a uniform advance rate of llfd per lb. The appropriation account shows a surplus of £41,054 18s 9d, which the directors propose to distribute as follows: To pay a further 2|d per lb on butterfat received during the season and to pay a dividend of 4 per cent, on the paidup capital. The valuation basis for unsold stocks of butter at May 31, 1937, was 12.9-lGths pence, plus the premium for quality. The advance payment during the season averaged 11.5468 d and with the final payment of 2.5 d brings the season’s average for all grades to 14.0468 d per lb butterfat, an increase of 1d compared with the previous season. The production during the season was 2061 tons ICcwt 2qrs 31b, compared with 2004 tons 14cwt lqr 251 b manufactured for the previous season —a decrease of 2 tons 18cwt 3qrs 221 b. At the commencement of the season we installed a new vat and churn, and this facilitated the economical working of the factory. As from .Tilly 1. 1936, the factories had to work a six-day week, with overtime for work done on holidays, Sunday and Saturday afternoons. The quality of our butter lias been well maintained during the season, and with the premium for the higher grading butter suppliers are requested to pay special attention to supplying us with only finest quality cream. “In the farm account the piggeries had a successful year, returning a net profit of £865 19s lOd, and equal to a return of 8s 4d per ton on butter manufactured. AVe have turned off 1056 pigs for the 12 months, which is a record for our pig farm. The piggeries committee and the farm manager are to be congratulated on the success of this undertaking, which shows a good profit for the satisfactory disposal of our buttermilk. The company has endeavoured to supply manure and farming requisites at the lowest possible prices, and the turnover shows an increase compared with the previous season. Although this account shows a small loss for the year, the volume of business done and savings made to suppliers must be considered satisfactory. The zoning of cream supply has been freely discussed during the year, and the directors are prepared to carry out the wish of the suppliers and endeavour to retain our present collecting area. The retiring directors are Messrs A. J. Gimblett, H. J. Lancaster and T. G ; Vincent, and as no further nominations, have been received we have pleasure in declaring that Messrs A. J. Gimblett, H. J. Lancaster and T. G. Vinc©nt l>o elected 101 tho ensuing term. Messrs J. L. Arcus and Dempsy and Litchfield again offer their services as auditors. The thanks of the shareholders are due to the staff for the efficient manner in which they have carried out their respective duties.' 1 .... The table of averages and quantities was given as follows, the statistics foi the previous year being given first and those of the current year second in each instance: —Number of suppliers, 560, 552; quantity of cream received, 9,886,0061 b, 9,906,9841 b;. quantity of butterfat received, 3,793,154.31 b, 3,803,705.41 b; cream graded finest grade, 84 02 per cent., 85.59 per cent.; cream graded first grade, 15.66 per cent , 14.05 per cent.; cream graded second grade, .32 per cent., .35 per cent.; quantity butter made, 4,624,9811 b, 4,618,3791 b; average cream test, 38.36 per cent., 38.394 per cent.; over-run, 21.941 per cent., 21.4341 per cent.; average grade butter, 94.630 points, 94.367 points. The auditors, Messrs J. L. Arcus and F. C. Litchfield, reported inter alia: “In compliance with the Dairy Industry Amendment Act, 1922, wo certify that the weight of butter made from each pound of butterfat used for the manufacture of butter was 1.2143411 b, and the percentage which the weight of unsalted butter manufactured bears to tlie total weight of butter manufactured is 8.1155 per cent.” IMPROVED QUALITY.

Although the early portion of the season had been wet and cold the latter part had been good, said the chairman in moving the adoption of the report and balance-sheet. The company’s production was a little lower than for the' previous year, but it had to be remembered that there were eight fewer suppliers. He felt that suppliers were doing their best to assist the company to produce the best possible butter. This year a small improvement was to be noted in the quality. Though it was not much, it was pleasing to see an upward trend. The increased costs as far as the company was concerned had amounted to about Jd per pound of butterfat. Farmers were now anxiously awaiting the announcement of the new price which was to offset these rises. It had to be remembered that even if working costs continued to rise the fixed price could not keep going up indefinitely. The institution of the local marketing arrangements had been the first step toward some form of control of this section of the industry’s activities. As a starting point the Government had taken over a Wellington firm’s business and was now conducting it as a State institution for local marketing. Arrangements had been made in the Wellington district, consisting of Wellington and the southern part of Hawke’s Bay, to supply the butter for the Wellington market through this institution. It was probable that this system would be extended eventually throughout the Dominion, and it was a good move provided the farmer received a fair remuneration for his produce. If there were fewer distributing agents competition in prices would be eliminated, with benefit to the farmer, while the cost of butter to the people would be lower. , ZONING OF SUPPLIES. Under the arrangement for the elimination of overlapping in cream collection by the allocation of zones for the various companies, there was a possibility of the Levin company losing its suppliers at Linton, the speaker continued. However, under an agreement adopted the company was allowed to retain these suppliers for the present. It was worthy of note in this connection that-the company’s cream collection costs were only y2lsfld per pound of butterfat to f.0.b., or under id per pound. In the course of the year 1056 pigs had been 6old and the net profit of the operations was £865 19s TOd, the chairman added. The return had been just over 5Jd per pound. Mortality was a difficult item to retard, and deaths during the year had amounted to 16

per cent. The marketing of pigs generally was an improvement on previous years. The export trade was the one to be followed to-day, and the object of all farmers should be to produce a suitable pig lor bacon on the English market. The breed was of no consequence, provided the quality was that desired. There was no doubt that the returns could be increased considerably by an improvement in the quality. The speaker commented that the price of butter boxes had risen considerably and that accounted for a large proportion of the extra factory costs. The Government had instituted a pool of boxes in the North Island, and it was administered by the Dairy Board. It now appeared that the present price of 2s per box would rise further during the current year. The company's trading account showed a loss of £3O on the year’s working That was not serious, because endeavours had been made to supply shareholders with goods at as cheap a rate as possible. The report was adopted. Tlie retiring directors, A. J. Gimblett, H. J. Lancaster and T. G. Vincent, were renominated and, there being no other nominations, they were declared elected. Messrs Arcus and Dempsy and Litchfield were re-appoint-ed auditors for the ensuing year.