NEWBURY DAIRY CO.

Manawatu Standard, Volume LVII, Issue 221, 18 August 1937, Page 10

NEWBURY DAIRY CO.

ANNUAL REPORT. A proposal to pay a dividend of 5 per cent, on share capital is announced m the 26th annual report of the Newbury Dairy Co., Ltd. The directors, through Mr M. G. Hansen (chairman) report “In respect of the previous year, 1935- the estimated season average payout to suppliers per pound for butterfat (all grades) quoted in the report was 12.63 d; the actual payout was 12.83 d. In respect of the current year 1936- the dairy produce unsold at balance date has been valued on the iol--1 owing basis: —Export clieese, at the price per pound f.o.b. fixed by the Dairy Produce Export Prices Order, 1936; local trade cheese medium cheese, 050 per pound; loaf cheese, Sd per pound. It is estimated that a season average payout to suppliers per pound or butterfat (all grades) of 14 .076 d should result from the disposal of unsold dairy produce at the values adopted. It will be noted that the make of cheese tor the year amounted to just under lbJ tons, against 172 J tons made last season, and that the costs to f.o.b amount to 3.351 d per pound of buttertat against 3.112 d for 1935-36 season. This increased cost is attributable to higher manufacturing costs, _ particularly wages (due to industrial legislation) and cheese crates, the increase in these items being over 20 per cent, the average advance for the season has been slightly over 12$d for first grade and 12.476 d over first and second grades combined. After making the above advances, the manufacturing ancl marketing account shows a balance ot £1065 18s 6d. This has been transferred to appropriation account, ana together with a balance of £Bl 4s to brought forward from last season > makes a total of £1147 13s 5d to be dealt with at the annual general meeting Your directors recommend tliat a bonus of 1.60 d be paid (making an average of 14.10 d for the season tor first grade), and that 5 per cent, dividend on capital be pc id • D le 2 p , payments would absorb £lO6l leave a balance of £B6 3s 10a. THE GUARANTEED PRICE. “When the Government fixed the price to be paid f.o.b. for clieese ant butter under the guaranteed price scheme, it was intended that the prices fixed would permit the average cheese company to pay lid per pound buttei - fat more than the average butter companv, but in actual practice it has been found that this objective is not nearly attainable. This is largely due to the increased costs to cheese companies being much higher than, to butter companies. The work-out 111 this connection has been very disappointing to cheese companies. We now understand that the Government fully appreciates the importance of conserving the cheese industry, and that, when the f.o.b. price for the ensuing season is fixed a premium of 2d for cheese suppliers’ will be aimed at. We have 110 doubt the Government will, when fixing the f.o.b. price to yield a premium of 2d, bear in mind the fact ,that their aim of lid premium for the 1936-37 season went far short of the mark. In view of the above, we feel sure that cheese suppliers may look forward to a much more satisfactory premium tor the ensuing year. The Government have been requested to make a further payment to cheese companies for 193637 to enable them to pay the premium aimed at. We understand that this request is receiving the consideration of the Government, and we are hoping for the best in this respect, especially as the cheese realisations on the Homo market are likely to create a considerable surplus in the Government s cheese account. Messrs E. Collins, A. R McCulloch and M. G. Hansen, who retire by rotation at the forthcoming annual meeting, offer their services for a further term. The meeting will also be asked to fill the vacancy caused by the death of the late Mr Hamlin. The retiring auditor, Mr W. Hunter, again offers his services. . We desire to express our appreciation of the way in which the factory manager has done all possible to further the company s interests during the year.” The following operating statistics are supplied, those for 1936 appearing in parentheses: — Pay-out previous year per lb butterfat (season average), 12.83 d ; pay-out current year per lb butterfat, advance, 12.476 d; estimated surplus, 1.600 d; number of suppliers (13), lb; pounds of milk received (3,371,015), 3,292,854; pounds of butterfat from milk (154,046) 151,968; average butterfat test of milk (4.57), 4.61; total charges, including repairs and depreciation up to f.o.b. at per lb of butterfat (3.112 d). 8 351 d. Cheesemaking: Pounds of milk (3,371,015), 3,282,854; pounds of butterfat from milk received over stage (no deduction for loss in whey) (154,- * 046), 151,509; average butterfat test of milk (4.57), 4.61; pounds of cheese (factory packing weights) (387,012), 378,244; pounds of milk to make lib of cheese (8.71), 8.70; pounds of clieese to lib butterfat (2.510), 2.496; average grade of cheese (91.50), 91.78. Milk grade percentages: First, (99.98), 96.96; second (.02), 3.04; pounds butterfat recovered from whey expressed as a percentage of total butterfat received for cheesemaking (6.7), 6.8.