SHANNON CO-OPERATIVE DAIRY COMPANY.

Manawatu Herald, Volume LI, Issue 4486, 2 August 1930, Page 2

SHANNON CO-OPERATIVE DAIRY COMPANY.

DIRECTORS’ REPORT ON YEAR’S WORK. In their 22nd annual report the directors of the Shannon Co-oper-ative Dairy Company state that alii,..ugh the market prices have considerably lower Ibis year than the previous season, yet taking into consideration the increase in production in the Dominion, this will to a certain extent compensate fur I lie lower prices received for buffer-fat.

At the beginning of the season tin- Directors realised that the old I'aciorv had run its course, and in view of llie increase in dairying in Ibis district, I,lmi a larger and more up-to-date factory would liutvc to be built, therefore they decided to call tenders for the erection of a suitable building and plant. Contracts were let at the beginning of this year to construct a new factory of reinforced concrete, together with up-to-date machinery, at an approximate cost of £IO,OOO, and we consider the building, which is now completed, will rank among the best, equipped factories in the Dominion.

It was considered advisable to spread the cost of this work over an extended period. Out of this \ear's profits the sum of £I.BOO, representing a fd per lb. on all but-ler-fa I supplied, lias been, placed to the credit, of the building account.

The following are the average monthly advances: —1920: July 1 7f, August 1 7, September 1/6, October l/ti, November .1 a, Det ember 1/4 £. LOGO; January 1/4, February 12, March 1 -, April I -, May l/-, June 1/2A. This makes the. average monthly advance for all grades of iiutlerl'iii 10.7)!Itli 1 per lb. Provision has been made in the balance-sheet for n further payment of Id per lli. on the season’s supply, bringing the average payment for all grades of butler-fa! for I lie year to Ui.oHOd. This, together with the amount of £I,BOO as previously mentioned paid off the! new building, your directors consider, shows a creditable year’s working from I In* point of view of the company as well as that of the suppliers. The amount, of butter manufactured was 022 tons.

The store business has again increased in turnover by about £2,him. and a net profit of £oof> 18/8 for the year. The iota I sales were £20,700, which proves that co-op-eration can hold its own, even in limes of cut pricys.'by endeavouring to supply the farmers' needs at as cheap a quote as possible. All .-■locks have been taken in at a conservative basis.

The amount of Prolil and Loss Account, as shown on the balancesheet,- is £2,1)48 18 f>. Out of this amount the Directors propose to pay the usual (i per cent, dividend and carry the balance forward.