FARM NOTES.

Putaruru Press, Volume VI, Issue 233, 19 April 1928, Page 6

FARM NOTES.

HiNUERA DAIRY COMPANY.

PAYOUT OF Is 3Jd NET. Important Considerations. The Shareholding Basis. Concern in Excellent Position. The deliberations of the directors at the monthly meeting of the Hinuera Co-operative Dairy Co., Ltd., may have far-reaching and beneficial effects upon the suppliers in future seasons. There were present: Messrs a. E. West (chairman), Ivan Black, P. Corry, J. P. Harris, S. A. Clarke, H. C. Pond, H. Hopkins and the secretary, Mr. W. A. E. Leonard. The statistics are as follows:—Suppliers, 79; butter-fat for March, 50,6171 b; payout, total, £4BOO, at the rate of Is 3td for superfine, clear of all deductions; final payout for but-ler-fat supplied for the period November to May, one-tenth of a penny per lb, this payment being the final of the Dairy Control payments on last season’s supply. The Dividend. The directors consider that the tompany’s position is so sound that a dividend of seven per cent for the period ending May 31, 1928, is warranted.

Shares Deduction Reduction. As the company is fully capitalised and has no capital liabilities, the directors consider a reduction of the share deduction is desirable for next season, from ftd per pound to id per pound. This is a matter for further consideration at a future date. The Share Basis. There is also a probability of the share basis being altered. At the present time the company’s standard —one of the best in New Zealand—is one share for every 1001 b of but-ter-fat for the season. It may be j considered advantageous at an early date to ask the shareholders to agree to one share only for every 1501 b of butter-fat. The shareholding is purely voluntary. The sound position the company has attained shows what can be done with a prudently-run cooperative dairy company. Some idea of its importance to the district may be gauged when it is stated that, from the Ist of June, 1927, to the 31st March, 1928, the company has paid out £55,600, an average of about £7OO per supplier. The average works out at Is 3id, irrespective of grade. The company is installing a bowser on the factory property for the service of suppliers. Comment. The proposed reduction in the usual deduction of id per lb for nonshareholders is a very wise and important move. After all, a factory is rot run primarily to make money out of anything but the sale of the manufactured product. It follows that the more feasible inducements there are

for dairymen to supply a factory, and the fewer handicaps, the better, for obviously the larger the turnover and overrun the smaller—other things being equal—the proportion of overhead expenses. Discussing the question, Mr. Ivan Black expressed the opinion that if the proposed improvements were adopted by the annual meeting, Hinuera Company would be on as good a footing as any in New Zealand, if not better. In fact, he was desirous of going further, and making the company’s shares negotiable and issuing scrip, with the proviso that the company should have the first refusal of such sales. There would then be no trouble whatever about a man getting out if he wanted to, or of reducing his shareholding in the event of his supply going down after a flush year or a reduction in the herd.

The proposals, although they seem so revolutionary, are undoubtedly sound when taken together with the ordinary safeguards. No doubt an authoritative report on the whole question will be submitted to the annual meeting by the secretary, Mr. W. A. E. Leonard, who is a Bachelor of Commerce, and therefore thoroughly conversant with the details and probabilities inherent in the proposed alterations.