CHELTENHAM DAIRY CO.

Manawatu Standard, Volume LVII, Issue 214, 10 August 1937, Page 4

CHELTENHAM DAIRY CO.

BIG DEFERRED PAYMENT. The Cheltenham Co-op. Dairy Co. lias announced that, following the annual meeting this month, a deferred payment will be made of just over £42,000, which will bring the past season’s average butterfat payment to 13 2-3 d per lb. This average payment for the pn'st season is slightly in excess of the estimated Dominion pay-out of 13Jd. The report of the directors is as follows : “The quantity of butter manufactured was 2515 tons scwt 441 b, being a decrease of 346 tons scwt 441 b on the previous season’s output. This decrease is chiefly accounted for by the reduced volume of cream received from the Glaxo factory at Bunnythorpe, where milk-drying operations have been resumed. It is gratifying to report that the quality of the company’s output is again satisfactory, the average grade for 12 months being 94,252 points. During the year the buildings, plant and motor lorries have been kept in

good order and repair. A railway siding has been recently laid down into the company’s property, and this will facilitate the handling of butter, coal, boxes and factory requisites. “The valuation placed on butter stocks at the close of last season was £74,222 5s 3d, and the nett realisation was £71,420 11s 2d, leaving a deficiency of £2BOI 14s Id to be brought forward against this season’s operations. This deficiency arose through an unfavourable downward turn of the London market, when the. stocks carried forward were being marketed, and consequently the stocks did not realise the value placed on them, which at the time of closing last year’s accounts was considered to be on a safe basis. Commenting on the marketing of these stocks, the London agents report as follows: ‘There have been two disruptive features affecting market movements, both of these being due to American buying, both rumoured and actual. An unjustifiable rise was followed in each case by a substantial fall. Unfortunately, it was one of these occasions that caused the unsatisfactory realisation price of your stocks at July 31 last year.’

“Deferred Payment.“-The 1 appropriation account shows there is a. balance available for distribution of £42,909 16s 6d (after providing for the above-mentioned deficiency on realisation of last season’s butter stocks). It has been decided to make distribution of the surplus in the following manner: (1) To make further payment on or about August 20 of 2 3-lGd per lb. on *thc full season’s supply of butterfat covered by shares, £42,166 11s sd; (2) to recommend a dividend of 3 per cent, on all shnre capital paid up as at June 30, 1937, £740, (3) to carry forward the balance, £3 5s Id; total, £42,909 16s 6d. The average payment for the previous season was 12.711 d per lb. butterfat (estimated 12,805 d). The average advance made to suppliers this season was 11.4626 d (all grades) and the abovementioned further payment of 23-10 d will bring the season’s average to 13.6501 d per lb. The export butter stocks at June 30, 1937, have been valued on the basis of the Government’s guaranteed price, according to grade. The stocks of butter at June 30, 1937, for local sales have been valued on a parity with the Government’s guaranteed f.o.b. price. “Pig Farm.—The farm working account shows a nett profit of £660 13s 2d which nmount has been brought into the accounts for distribution. A total of 1408 cows were tested under the Cheltenham Cow Testing Association system. The? cost of running the association was 2s per cow tested, towards which the Company has subsidised 9d per cow, thereby making the nett cost to members of Is 3d per cow. A subsidy of 9d per cow was also paid by the company to suppliers who tested their cows under the group system with the Mannwatu Herd Testing Association. “The retiring directors arc Messrs C. G. C. Dermer and N. G. Jensen. Three nominations have been received, namely, Messrs. Dermer, It. C. Hamilton, and Jensen. Ballot papers have been issued in accordance with the Articles of Association and tho result of the postal ballot will be announced at the annual meeting. Mr S. M. Hobbs, the auditor, offers himself for re-election. It is interesting to note that last season’s average pay-out was 12jd per lb and the deferred payment available for distribution was approximately £60,000.”

The following are statistics relating

to the operations of the company, the figures in pnrentheses being for the previous year: Number of suppliers, 969 (966) ; pounds of cream received, 11,030,300 (13,198,415) ; pounds of butterfat received, 4,626,104 (5,279,896) ; average cream tests, - 39.78 per cent. (40.004 per cent.) ; pounds creamery butter made, 5,634,204 (6,409,848) ; overran, 21.791 per cent. (21.401 per cent.) ; average grade of butter, 94,253 (93.88); cream grade percentages, finest 88.05 per cent. (88.957 per cent.), first 11.37 per cent. (9.979 per cent.), second .68 per cent. (1.064 per cent.) ; total charges up to f.o.b. at per pound butterfat, 1.7819 d (1.620 c!).