CHELTENHAM DAIRY CO.

Rangitikei Advocate and Manawatu Argus, Volume XLI, Issue 11644, 10 August 1916, Page 5

CHELTENHAM DAIRY CO.

Tb? annual meeting was held yes-, terday, when a large number of shareholders were present. Mr James Michie, the chairman, in proposing the adoption of the re-

port and balance-sheet, said that notwithstanding the adverse conditions under which all companies and businesses were .working in having to meet consideraly heavier charges on freight, insurance, factory requisites and other incidental expenses it was highly pleasing to think that though their season’s output was about 20 tons less than last year, yet, with the unprecedented high prices ruling-for butter in the Home market, they have been enabled to obtain what to the Company was a record in the profits returned. As showing what those increased expenses meant in a general way he would say that previous to the war the rate of freight for butter was 3s 6d per box, whereas it had now risen to ils 9d.- Patting this more clearly, the increased freight they had to pay on their last season’s output amounted to £303 3s 9d, and in addition to this a war risk of 31s per cent., which was an extra on the ordinary marine, insurance of 17s per cent., costing £317 17s 7d, giving a total extra charge on these two items of £531 Is 4d to the Company. The outstanding feature of last season’s operations was the record prices received for butter on the Home market. These opened in their case at 147 s9d per cwt., and with certain fluctuations during the season reached 170 s per cwt. Their gross average price was 159 s 9d, as against 136 s lOd during the previous year. The high prices were due to., the prohibition of export of butter from Prance, Germany i becoming a purchaser of Danish, and a reduction in the quantity exported from Australia owing to the drought, which'"all resulted in a lessened import of 43,000 tons to Britain. Re- * ferring to quality, Mr Michie said the prices for the best butter had been well' maintained, hut he was sorry to say all reports went to show that there was a marked decline in this respect of the quality of the butter exported by New Zealand marked as choicest. This was due to home separation conditions not being so as to ensure cleanliness "and consequently of cream of a pure'and sweet quality. An improvement in this respect could only be effected by the dairy farmers themselves. He was pleased to say, however, that the average grade for the Cheltenham butter exported last season'was 93.87, placing the Company fourth on the list of 63 companies exporting from the port of Wellington. This result reflected the highest credit on the capabilities of their manager and staff. Coming to the balance-sheet, they would see that after allowing the sum of £253 35s 8d as depreciation on land and buildings their net profit for the year ending June 30th, 1916, was £3153 3s 7d, which, with the sum of £1093 Is 6d, carried over from last year, brought the total gross profits available for distribution to £4346 4s Id. The directors, after careful consideration, had thought .it wise to allocate these profits in the following manner, namely, to pay all suppliers who were shareholders, a sum of 3%d per lb on the butter fat supplied, to , grant a,dividend of 5 per cent on all paid-up capital, to set aside the sum of £3OO to the Reserve Account, and to carry forward the balance. These payments would absorb about £3890, and there would then remain a balance of £356. As plant and buildings required additions and improvements it had been considered advisable to set aside the snm of £350 to a contingency fund towards the costs ot renewals. In regard to the price paid to suppliers this, with the bonus, would amount to Is 4%d per lb, making a record among the Dominion butter factories. The Company - manufactured 301% tons last year and exported 13!% tons. There were 135 suppliers land the test ranged from 38 to 53, as against those of the previous year, ranging from 16 to 50. The speaker congratulated the shareholders on the extrication of the Company from the | perilous position it was -in a few years ago. In 1909 the payment to shareholders was 10%d per lb for butter fat, and the Company lost £463. There was no profit in 1910.. 1911 or 1913. The Chairman concluded bis address in expressing confidence in the future of the Company. At the request of the chairman, Mr D. Nathan, who had been in r vited to attend, said a few words on the prospects of the dairy mdustrv. At present the prices were from Is 4%d to Is 5d per lb, f.o.b. He would advise the directors to ship Home. It . was true there wah an increasing production of margarine, but for the quality of butter turned out at Cheltenham there was an unlimited demand. His visit to New York and Boston recently had convinced him that thera was a market for our butter in North America, right down to Montreal, and, in view of the shortage of cattle in Europe owing to the war, he is of the opinion that prices would be good for the nejct 10 years. 4Che fact that his company had guaranteed, up North,.to pay Js 3d per lb for butter fat as a minimum to suppliers for the next three years, for the making of dried milk would indicate their confidence. In regard to the loss in creameries referred to by Mr MjtcheJJ, the speaker said there were many other companies in the same position. The item could be kept on the books if they thought fit It was a matter of internal arrangement. He concluded by congratulating the shareholders on the improved prospects of the company. On the motion of Mr Dernier, it was resolved that- the, Cheltenham Cow Testing Association be placed under the management of the Cheltenham Dairy Company. Mr Grice proposed that a sum he put aside for the purchase ot the shares of non-suppliers up to £1 each. On the objection being made by Mr Morton that it would ho unjust to reduce the value of the shares of non • suppl iers with oil t their consent, Mr Grice said the purchase should only be made by consent. The Chairman moved that the shareholders of the Cheltenham Dairy Company assembled hero today in animal general meeting acknowledge their deep sense of appreciation and gi’atefnl thanks to the Right Honourable W. F. Massey for the successful efforts mado by in's Government in providing facilities for the’ epxort of dairy produce throughout the present year. The motion was seconded and passed unanimously.. ;

' ■:<] Messrs M. Desmond and 0. G. O. Dermer were elected directors, andt Mr Wj R. Walker auditor. Votes of thanks 'were given to the manager —• and staff, and to the ladies for pro--.?; Tiding refreshments. - " r ;*j