The New Zealand Farmers' Dairy Union.

Manawatu Herald, 6 August 1896, Page 3

The New Zealand Farmers' Dairy Union.

The following is Iho third annual report of directors, to be presented to members at the third annual general meeting, to be held at the Occidental Hotel sampleroom, Palmerston N., on Tuesday, August 25. h, at 1 p.m. :

Gentlemen, — In submitting the third annual report the directors have to congratulate members upon the satisfactory results of the past season. lv the London butur market satisfactory prices were realised, and in the colonies an equally

' good result was obtained. Reference to the attached balance-sheet will show that, the financial position of the Union has improved very much since our last report. The nett profit of £1126 6s is not in itself a large item, but the fact tnuai; not bs lost sight of that our profits are very considerably reduced through the amouuo of paid*up capital being so out of proportion to the magnitude of the Union*a business, Which necessitates payment of interest on large sums of borrowed capital At the general meeting you will be asked to consider the question of taking steps to remedy this. In spite of this heavy outlay for interest the bakhfle of profit for the year*s working is equal to 28 par cent on the paid up capital of the company. In addition to the above profit, a surplus on butter taken over from the previous year has enabled the directors to reduce last season's deficiency from £4028 15s 8d to £8142 4s, a result which must be considered very satisfactory. The mortgage account and bank overdraft have also been considerably reduced during the year. The plant has been added to at a cost of £774 7s Bd, and is now of the latest and most improved pattern, and in excellent order. This expendhure has secured greater economy in working, and the production of butter of the finest quality. The shipments to London realised the highest prices ruling there for colonial butter, and your directors have also received reports from Hie London agents testifying to the excellent quality and popularity of our brands. In compliance with the resolution of shareholders passed at the last annual meeting, the directors took steps to reduce the deficiency by reclaiming from suppliers the amounts over-advanced against the i previous year's milk ; this proposal was, however, eventually abandoned, and the directors now propose to refund the amount so recovered, and allow the deficiency to be extinguished from future profits. The directors regret the large amount of calls outstanding, but active steps are being taken to secure prompt payment of all arrears. The plant having been kept in excellent condition and the cost of such maintenance having been charged to profit and loss account;, it ia not now proposed to show any writing off for depreciation. The directors will therefore Fubmife for your approval a proposal that the profit be applied ■ as follows, viz. : — £200 to be written off " preliminary expenses " account, and £926 to be credited to ! " deficiency account." • !

During the year the affairs of the Union have been placed on a thoroughly business-like footing, and the Board appreciate the support and assistance which has been accorded them by a majoaity of the shareholders. The future success of the Union, however, depends very largely upon the loyalty of the suppliers, and should this be forthcoming the Directors are confident the advantages accruing from the formation of this Company will be fully realised and appreciated by suppliers.

F. Babnabd Brown, Chairman of Directors.