DAIRY PRODUCE

Manawatu Standard, Volume LVII, Issue 222, 19 August 1937, Page 9

DAIRY PRODUCE

CHELTENHAM COMPANY.

ACTING -CHAIRMAN ’ S REVIEW.

The annual meeting of shareholders of the Cheltenham Dairy Company, Makino, was held to-day, when the acting-chairman (Mr N. C. Jensen) presided in the absence of Mr C. G. C. Dermer, who is at present overseas.

“The past season can he considered as having been fairly favourable for dairy farming,” said Mr Jensen in his address. “The rainfall throughout the summer kept the pastures green right through and there was not at any time any fear of curtailment of supply on account of lack of moisture. Indeed, the absence of sunshine on occasions rather affected the quality of the grass which lacked the nutriment that is so necessary for butterfat production. Individually, the dairy herds in our district produced on a par with last season. Collectively, however, the output of butter at the factory was less than last season, the reason being that the Glaxo Company resumed milk-drying operations at their Bunnythorpe factory. For some time past they have not made milk powder at Bunnythorpe, but have separated all the milk and have supplied our company with the cream. This represented a large volume of supply, which, of course, we could not expect to remain with us permanently. Although their supply has materially decreased, we still receive any surplus cream arising out of the process of milk drying. “When Mr Dermer addressed the annual meeting last year he stressed the point that we must use every endeavour to produce a high grading butter. I am very pleased to say that the quality of our butter has been well maintained, which is shown by the average grade of 94.25 points. The price received from the Government depends on the grading points On all butter scoring 94 points and upwmrds a premium of Id per cwt., equal to £d per lb., is paid, so therefore quality is more important than ever. “The following is a summary of the percentage of our company’s butter gradings for the past season: —Finest grade, 93 points and over, 96.35 per cent.; first grade, 3.65 per cent.; second grade, nil. This can be considered as very satisfactory, but I can only repeat that we must all make a combined effort and continue to obtain the premium payment for as large a percentage of our output as is pos■ible. , “I think the directors’ report to the balance-sheet gives a clear and straightforward report on the past season’s accounts. It would therefore be only repetition for me to again traverse what is already printed in the report. “The company’s total average payment over all grades for the year is 13.65 d. Having regard to all the circumstances, I think the final result is satisfactory, considering the fact that there was a deficiency of £2BOO on tlie realisation of stocks carried forward last vear. The all-in costs from farm to f.0.b." show an increase of 30s 3d per ton butterfat. This was expected. The increase occurs chiefly in boxes and m wages. Further increases under these headings must occur again during the coming season; factory requisites and boxes will be higher in price and we are faced with a new Dominion award for dairy factory workers. “The farm,” said Mr Jensen, “earned a net profit of £660 13s 2d after making due provision for depreciation. The net profit is due to 5s 3d per ton of butter manufactured. While prices during the past year were fairly good for baeoners and porkers, the season itself, was not a good one for fattening pigs, ’ being too wet and not enough sunshine. On account of the decrease of 346 tons in the butter output there was, of course, less buttermilk for feeding to the pigs. The financial result of the pig farm is therefore satisfactory. FUTURE PROSPECTS. “With control of the sale of our produce eut of our hands, our chief concern is now: What is going to be the new guaranteed price? Will it be sufficient to meet increased costs on the farm, in the factory, and in living? Evidence is not wanting that the farm labour problem is affecting the production of butterfat in our district. We. have specific instances of where, labour is difficult to obtain for dairy farms on account of the higher wages offering for other occupations. In some cases clearing sales of dairy herds have taken place and in other cases herds have been reduced in number, whilst in other cases the wives of dairy farmers have had to go into the milking sheds to help with the labour of milking. In fixiim the new guaranteed price it is to be honed that the Government will take these facts ip to account. Unless this is done 1 foresee further dairy herds being sold with consequent reduction in butterfat production. However, notwithstanding these difficulties i would suggest that before dairymen consider changing over to slie-ep farming they should keep in mind that the prices for wool and mutton cannot always remain on .the present high level.”