DAIRY INDUSTRY

Manawatu Standard, Volume LVII, Issue 215, 11 August 1937, Page 4

DAIRY INDUSTRY

RONGOTEA COMPANY. * YEAR IN REVIEW. Tho report lo lie presented by 1 lie chairman (Mr W. C. Glovn) to the annual meeting of the Rongotea Co-op. Dairy Co., Ltd., records that the output for the season reached 1120 tons 7cwt 2qr 26:b, an increase of 56 tons 7owt 41b. ‘‘Since our last report the guaranteed price of 12.9-16th ponce per lb on all butter exported was announced by the Government, and payment is now made by tho Primary Products Marketing Department at the above price, plus a premium of Is 2d por cwt for butter grading 94 points and over. Wo are pleased to state that practieaily all our butter gained this added premium, and this has been reflected in tho pay-out. The average grade for all butter for the twelve months was 94.404 points. In accordance with the regulations we have to report that the average advance for the year 1935-36 of 10.07 pence por lb, together with the deferred payment of 2.5 d por lb, makes the average payment for that year of 12.57 d per lb butterfat (all grades) os stated in the previous report. The appropriation account for tho present year 6hows a surplus for distribution of £20,167 13e 2d which your directors propose to distribute as follows: — To make a further payment of two and five-sixteenth penco per lb on all butterfat supplied throughout the year; this payment added to the advance (all grades) of 11.484 d per lb will make tho total pay-out for the year qf 13.796 d per lb free of all costs to the supplier. Your directors abo recommend that a dividend of 5 por cent, be declarod on tho paid-up capital as at June 30, 1937. The deferred payment absorbs £19.689 15s 9d and the dividend as recommended £362 2s lOd. After making allowance for the chairman's honorarium and ineomo tax thoro will be a balance carried forward of £3C 14s 7d. Tho valuation basis of the unsold export stocks at June 30. 1937, was at the price fixed under the guaranteed price regulations in accordance with the grade points allotted to such butter, and tho butter hold for local sales at the price fixed by regulation governing local market prices. Climatic conditions throughout tho year have not been conduciv e to high production, yet notwithstanding a very wet spring the supply has remained steady during the summer and autumn. We are pleased to report that Rongotea butter this year gainod tho championship banner at the Waikato Winter Show, and alee gainod third place for the Palmerston North Show banner. This re fleets credit on the suppliers for the quality of cream sent in and on tho manager and his staff for care in manufacture. The zoning of cream supply has, during the year, been further discussed with the Executive Commission of Agriculture, and tho agreement so far reached published in the daily papers. It will now be compulsory that all suppliers become shareholders in accordance with the regulation gazetted by the Executive Commission. In accordance with tho articles of association Messrs Gloyn, Huddleston and Davison are the retiring directors. Mr J. Huddleston is not seeking re-election, and the thanks of the shareholders is accorded to him for past services as a director. Tho following no-

initiations have been received for the three seats: Messrs \V. A. Davison, W. H. H. Foster, W. C. C'.loyn, A. Kilpatrick and A. L. Milne. You are required to elect an auditor lor the ensuing year, and Mr P. L. Siin again offers his services.” Operating statistics are as follow, those for 1936 being included in parentheses: — Number of suppliers (243), 243: butterfac received (1,948,4851 b), 2,043,4861 b; butter manufactured (2,383.4381 b). 2.509,6661 b; over-run (21.80 per cent.), 22.812 per cent.; cream received (4,879,0141 b), 5,217.9221 b; average cream test (39.93 per cent.), 39.162 per cent-.; average grade of butter (94.30), 94.404. Costs per lb butter fat: Manufacturing, transport, storage, overhead expenses and depreciation (1.508 d), 1.670 d; cream collection, including depreciation (.229d), .237 U; finest cream grading percentage (94.57 per cent.), 92.211 per cent.; first cream grading percentage (5.26 per cent.), 7.505 per cent.; second cream grading percentage (.17 per cent.), .284 per cout.