DAIRY INDUSTRY

Manawatu Standard, Volume LVII, Issue 211, 6 August 1937, Page 8

DAIRY INDUSTRY

ANNUAL MEETINGS. MANAWATU-RELIANOE CO. The annual general meeting of the Manawatu-Reliance Co-operative Dairy Co. was held this week at the factory at Rangiotu, the chairman of directors (Mr R. G. Moore) presiding over a good attendance of shareholders. The 18th annual report stated that in tho 1935-36 report the average payout per pound for butterfat was shown as 9.643 d per lb, but when all cheese was sold the pay-out was increased to 12.548 d for that year. “At June 30, 1937, there were 572 crates unsold, and these have been valued at 6Jd per lb, which is equivalent to the guaranteed price for first grade cheese. During tlie season the monthly advance was Is for July, and for the remaining eleven months equalled 12Jd. The directors recommend a further payment of nine-tenths of a penny on butterfat supplied during the season. This will absorb the sum of £612 18s, and will make the average payment for all grades of butterfat 13.38 d per lb. This will leave the sum of £3 2s 9d to be disposed of.” Tlie following operating statistics were presented, those for 1936 appearing in parentheses:—Pay-out previous year per lb butterfat (season average), 12.548: pay-out current year per lb butterfat, advance, 12.48; estimated surplus, .90; Number of suppliers (17), 18; pounds of milk received (3,255,419), 3,710,144; pounds of butterfat from milk (140,157.36), 163,438.79; average butterfat test of milk (4.310), 4.405; total charges, including repairs and depreciation up to f.o.b. at per lb of butterfat (3.572), 3.923. Cheesemaking: Pounds of milk (2,910,386), 3,648,133; pounds of butterfat from milk received over stage (125,456.64), 160,309.89; pounds of butterfat in cream sold (14,700.72), 3128.90; average butterfat test of milk (4.310), 4.39; pounds of cheese (factory packing weights), (319,349), 403,063; pounds of milk to make lib of cheese (9.11), 9.051; pounds of cheese to lib of butterfat (2.54), 2.51; average grade of cheese (91.69), 92.06; milk grade percentages, first (99.73), 97.92; second, (.27), 2.08. RISING COSTS. Speaking to the report, Mr Moore said the production figures for the year showed an increase of 37 tons 6cwt 3qr, or 26.2 per cent, on the previous year. He proceeded: “This should have normally effected a saying in production costs, and in some items such as fuel, power and overhead charges this was the case, but owing to the Government regulation of tlie price of certain articles, such as crates, and the material increase in wages, the year’s operating expenses rose, from 3.572 d to 3.923 d, an increase of ,351 d per pound of butterfat. In my last year’s report I estimated the wages increase per ton of cheese as 12s 6d, but find that the increase is nearly 1/s per ton. The cost of crates has similarly advanced nearly 11s per ton. A further increase in expenditure is caused by the delay in shipping our produce, as it results in increased storage charges. I do not think that our manufacturing costs are excessive when you consider our output, but unless the guaranteed price is raised considerably there is no prospect of our payment equalling, much less exceeding by ljd, the price paid by the local butter companies, and consequently we may bo faced with the prospect of a further loss of supply. The average shrinkage from green weights to graders’ weights for last year was 1.70, and the shrinkage from graders’ weights to shipping weights was 2.5, which is the percentage fixed by the Government. It is with the greatest regret that I have to report the loss sustained by the • company caused by the deaths of Mr J. H. Lover and Mr C. Alve, who have been of great service to the company, both as directors and shareholders, for many years. The thanks of the shareholders are due to the manager, Mr Chapman, and his staff, and to the secretary, Mr A. E. Mansford, for the manner in which they have looked after tlie interests of the company. I wish to express my thanks to the members of the directorate for their hearty cooperation and support during the year.” The report was adopted. Messrs R. G. Moore, S. Graham and E. L. Russell, who retired by rotation, were re-elected, and Mr D. G. Moore was elected to fill the vacancy caused bv the death of Mr Alve. ‘ The auditor (Mr R. Davis) was reelected.

Votes of appreciation were accorded the chairman, directors, secretary and staff.

At a subsequent meeting of directors Mr Moore was re-elected chairman.

TUI DAIRY COMPANY. The eleventh annual meeting of the Tui Co-operative Dairy Company was held at the factory at Glen Oroua, last evening, when Mr J. Boyce (chairman of directors) presided. The annual report of the directors retailed that in the previous report the season average pay-out was shown as lljd, but when all cheese was realised the pay-out was increased to ]2.95d for the year, “At June 30, 1937, there were 899 crates unsold, and these have been valued lit 63d per lb, which is equivalent to the guaranteed price for first-grade cheese. During the season the monthly advance equalled Is Id. The directors recommend a further payment of Id on butterfat supplied during the season. This will absorb the sum of £791 12s 9d, and will make an average payment for all grades of butterfat of Is 2d per lb. This will leave the sum of £72 17s fid to be disposed of.” Owing to an alteration in the financial year the operating statistics covered only eleven months. These were presented as follows, with the 193 G figures in parentheses: — Pay-out previous year per lb butterfat (season average), 12.95 d; pay-out current year per lb butterfat, advance, Is Id, estimated surplus Id; number of suppliers, (14), 13; pounds of milk received, (4,564,624) 4,413,961 ; pounds of butterfat from milk, (199.617.38) 189 992.59; average butterfat test of milk, (4,373) 4.304; total charges, including repairs and depreciation up to f o.b. <at per lb of butterfat, (3.168) 3 762). Cheese-making: Pounds of milk (4,489,289) 4,392,036 • pounds of butterfat from milk received over stage (196,155.19) 188,913.56; pounds of butterfat in cream sold, (3,462.1?) 1 079 03; average butterfat test in milk (4.37) 4.301; pounds of cheese (factory packing weights), (500,076) 489 167; pounds of milk to make lib of cheese, (8.98), 9.98; .pounds of cheese to lib butterfat, (2.55) 2.59; average grade of cheese, (92.01) 91.78; milk grade percentage, first, (100 per cent.), 100 per cent. A credit balance of £IOB6 5s 2d was reported in the working account. ■ Speaking to the report, Mr Boyce stated i—“The usual amount of id per lb of butterfat, amounting to £197 18s 2d, has been added to the depreciation reserve, which now stands at £2704 17s 5d this represents 90 per cent, of the ‘present book value of the buildings and plant, and must be considered very satisfactory. After making provision for all charges in connection with the past season’s produce, the balance ot the appropriation account is £864 10s 3d, and the proposed further payment

will absorb tlie sum of £791 12s 9cl; it leaves a balance of £72 17s (xl to be disposed of as you may decide. When all the produce' lias been shipped and all expenses paid, there should be sufficient surplus to enable us to pay a further one-tenth of a penny over the whole season. During the year some small additions wore made to the buildings and plant account, representing additionel' electric lights and a curd mill. Shares in the National Dairy Association, Ltd.: A further sum of £6 9s sd, representing rebates on purchases for the past year, has been credited to our calls account. Our liability on these shares now stands at £129 Is 2d.

INCREASED COSTS. “The stock ot manufacturing requisites has been valued at cost. Our cheese in cool store has been valued at 63d per lb, which is tho lowest guaranteed price for first-grade cheese. As some will return us 6.8125 d we should have sufficient surplus to enable us to pay the one-tenth of a penny that I mentioned previously. Production for the year was 218 toils 7ewt 2qr 71b, graders’ weights, and is a reduction of nearly five tons on last year, but you must not forget that our present accounts cover only eleven months this year. Manufacturing costs have shown a considerable increase from 3.168 d to 3.762 d, a rise of ,594 d per lb of butterfat. This increase lias chiefly been caused by the higher price charged for crates, and the higher wages paid and the shorter hours worked. I stated in my last report that we estimated wages to cost us at least 12s 6d per ton more, but it works out at nearly £1 5s per ton of cheese more, being £4 7s jld per ton. Similarly, the cost of crates and scale boards lias risen by approximately 9s 6d per ton of cheese to £1 17s 4d per ton. The increase in cartage and railage is caused by the higher prices paid for our cartage during the past season. Our average pay-out of Is 2d, including the bonus, compares very satisfactorily with any cheese factory of a similar size, especially when you take into consideration that Jd per lb of butterfat was written off for depreciation, and that there will be a further bonus of approximately onetenth of a penny made later. ’The thanks of the shareholders are due to the manager (Mr Lawlor) and his staff, and the secretary (Mr A. E. Alans ford) for the manner in which they have looked after the interests of the company. T wish to express my thanks to the’members of the directorate for their hearty co-operation and support during the 'year.” Mr Boyce, who retired by rotation, was re-elected to the directorate, and at a subsequent meeting of directors was re-appointed chairman. The auditor (Mr R. Davis) was reappointed. , * Votes of aprpeeiation were accorded the chairman, directors, secretary and staff.