DAIRY COMPANY'S YEAR

Bay of Plenty Beacon, Volume 5, Issue 3, 11 September 1942, Page 3

DAIRY COMPANY'S YEAR

RANGITAIKI PLAINS SUPPLIERS CHAIRMAN'S REVIEW In his review of the year's operations the chairman of the Rangitaiki Plains Dairy Company, Mr W. A. McCracken. at the annual meeting on Wednesday stated as under:— Output: 3689 tons Ocwt 3qrs 211bs of Creamery Butter was manufactured during the past season compared Avith 5103 tons lewt 2qrs Olbs for the previous season, a decrease of 1414 tons Ocwt 2qrs lfilbs. The Company's New Cheese Factory manufactured lOKO tons 12c\vt 3qrs

25Ibs of cheese and supply, equivalent to 904 tons lOcwt 3qrs Olbs of cheese, was transferred to the Opouriao Dairy Company. It is estimated that the decrease in butterfat production on the Raiigitaiki Plains during the J9II/I2 season amounted to approximate!}' 8 per cent. Quality: 17,349.210.51bs of cream were received and were graded as follows: Superfine 01).25 per cent, First Grade 30.5:5 yer cent, ancT Second Grade .22 per cent. 21,378.458 lbs of milk were received and were graded: First' Grade 93.15 per cent and Second Grade (5.85 per cent. Buildings' and Plant: During the year £8256 16s 4d was spent on the purchase of Cheese Factory Land and Buildings and £10,380 7s Ild. on Cheese Factory Plant. Additions to Edgccumbe Buildings and Factory Plant amounted to £5395 0s 2d. The chief it?ms added to the Edgeeumbe - Factory Plant were a KM) h.p. Boiler. a VacreiKor and a Nailing Machine. Pig Farm: Tlie nelt return for the season is £1799 l(js 10d, equivalent to 9/9 d per ton of butter.' Factory Store: The year's turnover is £70559 2s sd. Tire decrease on last year's turnover is accounted foi' by the reduced deliveries in fertilisers. Payout Season 1940-41; Th? estimated average payment last season exclusive of cartage and interest was 1(3.006(1 per lb butterfat. This figure was sustained. Payout Current Season: Cream suppliers have already received an average advance-payment ot 13.8 lie! per pound butterfat and a bonus o!' Id) per pound. This leaves a surplus of 7.0G5d p?.r pound butterfat on which .Ood has to be transferred to the Pooling. Scheme thus leaving 1.015 d per pound ■bultcrfat available for distribution. Cheese factory suppliers have received an average advance payment of -14.964(1 per pound butterfat and a bonus of Id per pound butterfat. A surplus of 1.280 d per pound butterj'at together ■with .143 d per pound butterfat contributed by the Pool leaves 1.432 d per pound butterfat available for distribution. Suppliers transferred to the Opouriao Dairy Company who have elected to be paid out by this Compan3 r have received an average advance payment of 14..973 d per pound butterfat and Id per pound

foutterfat bonus paj'ment. The Directors have decided that the distribution of the remaining funds .available for all three sections of the Company's suppliers wil be made in such a manner as to leave the respective payouts in accordance with the fairest basis possible. Over and above payments of .098(1 purchase rebate and .065(1 for dividend, the distribution from the poo' to cream suppliers will be 15.85Gd, (add cream cartage paid on their behalf —.327 d) to milk suppliers 17.;>!H5d (-add milk cartage paid on their behalf—-.fiiilkl) and to suppliers transferred Opouriao 17.:W0<1 (add milk cartage paid on their beliall"—1.12(kl). For purposes of comparison with other Companies Ihe payouts can be accurately slated as. cream suppliers, 1.1.8."(kl; milk sup-

pliers, 18.04!) d; mid suppliers Iransferred Opouriao, 18.;?22<!. The Bonn , . of Directors lias decided thi'.t a> suppliers who wen- transferred I" Opmiriao receive Ihi- iuil carla:; ; allowance of 1.-.12(h! per pound hulterlnl. tliese suppliers-, under the l'ooiii-g arrangement. must pay back inLo the Company all subsidies which colli e- un-der the following categories: (a) those receiving a lod per Jb Inittert'at cartage subsidy on twice daily deliveries to cheese factories to paj- one farthing per pound of tiiis into the Pool, (b) those receiving 75 per cent of cartage costs over ;vnd above a %d per pound butterfat to pay this subsidy into tlie Pool, (c) any further cartage due under the Hardship Clause or because of special consideration to come into the Pool. Valuation of 'Dairy Produce Stodks: The valuation of stocks of produce not taken over by the Marketing Department at Balance dale Price, due allowances having been

made for the premiums and deductions allotted to the various' grades. Butter for local sale has been valued at the Avholcsale price fixed by the Internal Marketing Department. Provision for all charges up to F. 0.8. has been made, has been made at the Guaranteed Export Marketing Department Allowances: The Export Marketing Department, recognising that the substantial transfer of supply to the Cheese Factories materially affected our Butter Factory costs, lias granted by -way of compensation the sum of £1830 16s 7d (%d per pound butter fat on I,7(i',i,'.io7.B\bs butter- | fat). The Marketing Department has

also agreed to make an allowance of £-1023 Us 8d on behalf of the Cheese Factory. This grant for the Chee.se Factory represents an amount sufficient to bring the Company's funds up to a sum which allows a differential of 2d per pound butterfat to be paid to the Cheese Factory suppliers over the true Butter Factory Payout. The consideration extended by the Export Marketing Departmont is appreciated by your Board of Directors. Directorate: Under the provisions of the Articles of Association, Messrs D. S. RadelilTc and S. C. Spence retired this year. Messrs D. S. Radeliffe and S. C. Spence being again nominated and there being no other nominations these Directors have been declared duly re-elected for a further term of office. Dividend: Your Directors recommend that a Dividend at the rate of 1 per cent absorbing the sum of

£22.18 K's'lcl lie paid on all capital paid up lo the :H)lh of June, 1912. Grading Results: The increase in the average grade of-our butter for the season under review from 92.994 lo i).')..'3io must be considered very satisfactory. Your Directors arranged for the installation of a third Vacreator in the early part of the 1941, 42 season so that the large quantity of cream handled at the Butter Factory could bo more intensively processed. Our sincere thanks are due to Messrs H. J. JPeteh, T.. Morrison and J. Singleton of the Dairy Division, Hamilton, for their recommendations and supervision, these resulting in more intensive treatment being given to the cream with highly satisfactory results. I\lr J. Rutherford and his stall' arc to be congratulated on the manner, in which the recomm; , !! lations. from th; , - Division were carried out and adhered 10. The Butter Factory Manager and his assistants arc also to be commended on their achievement i>l -winning outstanding success v/itli their Show Butter entries. Whilst the cheese grading results of 90. cannot be considered satisfactory U has to be remembered that the working of two shifts* and the manufacture of cheeso with the night's mi as distin?t from the morning sup-

ply was far from helpful from a grading pcint ot view. For a period during the season attempts to improve an unsatisfactory grade were quite unsuccessful despite outside assistance and supervision. Cheese Factory: The Company's now Cheese Factory commenced operations on the Ist of October, 1941, and continued with the manufacture of cheese until the 30th of July 1942. The complete elimination of the Cheese Factory came , as a surprise. Your Directors after negotiating with the New Zealand Dairy Board and the Dairy Division appreciated the circumstances requiring the transfer of milk suppliers back to cream supply and accordingly made the neccssaiy arrangements. Our thanks are due to Mr T. A. Conncry, Cheese Factory Manager, who served the Company ably and loyally under most difficult labour and manufacturing conditions.