SUCCESSFUL YEAR

Southland Times, Issue 21093, 27 May 1930, Page 5

SUCCESSFUL YEAR

SOUTH ISLAND DAIRY ASSOCIATION.

REVIEW OF PAST SEASON.

A successful year is reviewed in the annual report of the South Island Dairy Association, extracts from which appear below. The annual conference of the association will be held at Dunedin on Thursday, June 5. The report states, inter alia: — Profit and Loss Account.—After making all reasoi._b!e provision for depreciation in the value of the association’s assets, this account shows a credit balance for the year of £693 11/-, which we recommend be transferred to the Capital Fund Account, bringing the latter to £13,795 6/11. Capital Fund Account.—We would draw your attention to the fact that the amount standing to the credit of this account has all been acquired from surplus revenue during the comparatively short period of 14 years, without the aid of one penny piece of subscribed capital. We consider this to be rather an achievement, especially in view of the experiences of many kindred cooperative organizations during the same period which we regret to say have not been so fortunate. A great deal of the success which has attended the association’s operations and placed us in our present happy position is undoubtedly due to the loyal manner in which the members have supported us, and we' desire here to express to you our appreciation for the way you have seconded our efforts. If we continue to make the same rate of progress, and we can see no reason why we should not, the time is not far distant when there will be no necessity to accumulate further capital, and all surplus revenue can be handed back to our members. When that stage is reached the association will be a greater asset to you than ever. Membership.—The number of members on the roll stands at 109, the same as the previous year.

Trading.—lt is again our pleasing duty to report that the business done in supplying factories with their manufacturing requisites continues to increase. Although prices of most goods were on a lower level, the turnover for the year was 13 per cent, in excess of that for the previous year, and as the latter was over 20 per cent, better than the year preceding, it will be seen that in two years we have increased the turnover by one-third, and that despite the fact that prices have been in a downward direction. As a further illustration of the progress which the association has made in this branch of its activities, we may saj' that the turnover for the past year was only a small fraction below ’that for 1922 when prices were more than double what they are to-day. There has, of course, been an increase in dair- production with a conseauent greater demand for manufacturing materials, but that onlv accounts for a small portion of the extra business done. The explanation is that factory companies are realizing more and more as time goes on that it is to their benefit to place their business with their own organization, and that the more support the association receives from them, the greater will be the advantage to themselves. Our policy is to supply the factories with goods of the best quality at the lowest possible cost and it is gratifying to us to know that it meets with the approval of the large mapority of the members. In view of the competition which our produce has to meet in the world’s markets, it is imperative that we do everything we can to improve the quality, and this, of course, is not possible if inferior materials are used in the manufacture.

Machinery.—The machinery department continues to show progress and can now be written down as a sell-supporting unit. In the initial stages, we may now confess, this branch was not altogether independent of support, but as we expected, that position no longer applies, and it is now quite able to look after itself without any nursing. The staff was kept fully employed during the year, and for a period it was found necessary to work a considerable amount of overtime to meet demands. The milk and, cream cans manufactured by the association were in great demand and it was not. possible for the workshop staff at times to cope with the rush of orders. Advantage has been taken, during the off-season for factory work to replenish stocks of cans and other ware, and we are hoping that with the extra provision made we will manage to meet all requirements during the forthcoming season. There can be no question that the establishment of this branch has been of very material benefit to the factories, if for no other reason than that it has compelled other firms in the business to reduce their charges to a level with those of the association. It should be kept in mind, however, that the more work this department is given the lower we can reduce the costs to the factories, and as the turnover increases so will the charges become less.

Invercargill branch.—For some time past we have felt the need for better and more adequate accommodation for the transaction of business at our Invercargill branch. The situation and appointment of the offices were not conducive to the health and efficiency of the staff, and the accommodation for the storage of goods, and for the operations carried out in the workshop was far from satisfactory. We were given the opportunity some monthes ago of acquiring the lease of a shop on the street immediately in front of our other premises, and after negotiating with the owners, we entered into a new lease of the whole of the. premises for a term of ten years, at a satisfactory rental. The owners carried out extensive alterations to meet our requirements, and the staff is now established under conditions which will enable us to give better service to our members and will more than compensate for the extra expenditure involved.

N.Z. Producers’ Marketing Association. — As South Island agents for the Marketing Association, we dealt with the export or large quantities of butter and cheese during the year. The total quantity handled did not reach the previous year’s record figures, but in view of the altered circumstances we have reasons for congratulating ourselves with the results, which more than exceeded our expectations. The entry into the field of a new company professing cooperative principles, and the natural desire to try out new experiments in marketing has resulted in the Marketing Association losing temporarily the support of one or two factories. We feel certain, however, that this set-back will be of short duration, and that the support which has meantime been withdrawn from the association will soon be returned in larger measure than before. We have sponsored the Marketing Association since its formation 10 years ago because wc are convinced that the objects for which it was constituted are more directly in the interests of the dairy producer than any other-marketing scheme for the industry which has yet been tried out in this country. It may be that the association has not succeeded in attaining all it set out for, but that is not due to any defect in its constitution or principles, but to the lack of appreciation by producers generally of the benefits to be derived from wholeheartedly lending their support. The association is at anyrate founded on truly co-operative lines and functions entirely in the interests of producers.

F.o.b. Purchases. —Besides dealing with butter and cheese on consignment, we made a number of f.o.b. purchases of factory outputs to the end of December and for the whole season. We paid B ; {d. per lb. tor cheese to the end of December make and 84d. for the whole season; also 1/4 for butter. These purchases were made on account of the English Co-operative Wholesale Society who are very heavy losers as a consequence, as they were the previous year also. Fortunately they are in a position to meet these losses without any injurious effects, and they have been made easier by the knowledge that what has been their loss has been the producers’ gain. They are the people whose aims were stated by a certain individual prominent in the industry to be opposed to those of the cooperative producer. There never was a more outrageous libel uttered against a body of men whose thoughts and actions are entirely in accord with the objects of the producer. The total quantity purchased by us was considcrabl-- less than the previous year, and that, together with the fact that more produce was sold f.o.b. through other channels, and consequently less consigned,

were the main reasons for the decrease in the aggregate amount which we handled. Shipping.—On the whole the produceavailable for export was dealt with by the shipping companies in a fairly satisfactory manner, and considering that there was an increase in the production of butter of approximately 13,000 tons over the previous year we can hardly complain at the delays in lifting the produce which were occasionally experienced. Just lately the stores at Bluff were taxed to the limit of their capacity and factories had to be advised that no further produce could be dealt with until the position was relieved. This has now been obtained and, so far as the South Island is concerned, the position is again normal. To cope with the situation which applied throughout the Dominion, it was found necessary to send out several vessels from Britain in ballast. This, you will understand, is an expensive method of getting our produce to the Home markets, and is a very sound argument why we should, whenever possible, give preference to British manufacturers, rather than foreign, for goods which we have to import. The chairmen of the Meat and Produce Boards have been sent to Ixindon to negotiate with the shipping companies for a new freight contract. We hope they will succeed in arranging a contract on more favourable terms to the producers than the existing

one. Otago Dairy Producers’ Cool Stores. — Last month a fire unfortunately occurred in these stores resulting in considerable damage to the machinery and grader’s office. The brigade made a splendid save, however, and succeeded in confining the outbreak to the engine-room and the grader’s premises situated immediately above. No .damage was caused to the butter and cheese, large quantities of which were in store at the time, but on account of the machinery being put out of commission it was necessary to arrange for temporary storage of the butter elsewhere, and this was successfully accomplished without delay. Association’s Butter and Cheese Grading Competitions. —The winners of the trophies this year are: —Butter-maker. —Mr Ward Bennitt, of the Arahura Butter Factory, Westland, with an average grade of 94.552. Cheese-maker.—Mr T. Duncan, of the Stirling Cheese Factory, Otago, with an average grade of 93.640. Mr Bennitt also won the butter trophy last year, which was his first year as a manager, and his further success is highly creditable to him. The results of the cheese competition were exceedingly close, as will be seen from the following: — T. Duncan, Stirling Factory, 93.640; J. Begg, Milton Factory, 93.639; N. Marshall, Omimi Factory, 93.605. It is worthy of note that all three are Otago factories. This is the first occasion on which Mr Duncan has been successful, but we feel sure it will not be the last.. Messrs Begg and Marshall have, for a number of years, figured high in the competition, and are both past winners. Mr Begg indeed was unkind enough last year to come out the winner for the third time, and as a consequence compelled us to hand over the trophy to him for keeps, and put us to the expense of providing another. The two winners will be presented with gold medals at the conference. Directorate.—The retiring directors this year are Mr H. J. Middleton, and Mr J. S. Grieve, both of whom are eligible for rcelection. The only nominations received are in favour of Messrs Middleton and Grieve. The following notices of motion will come up for discussion at the conference: — From the Milford Dairy Factory Coy., Ltd.—“ That in view of the imperative necessity of improving the quality of our cheese, this meeting urges the Dairy Division to take immediate steps to institute a system of compulsory grading of milk for cheese-making with differential payments to suppliers based on quality.” From the Co-operative Dairy Company of Otago, Lt.—“ That the South Island Dairy Association press for an amendment of the Industrial Conciliation and Arbitration Act to provide for compulsory conciliation, but optional arbitration.” From the Wyndham Dairy Factory Coy., Ltd.—“ That the dairy factories as a whole appoint representatives at this meeting who will prepare and have brought before the Arbitration Court a rate of wages and schedule of working hours for employees, which, taking into consideration the serious setback the dairying industry has to face in the future as regards the shrinkage in value of both butter and cheese, should be acceptable to the factory employees, who should reasonably be prepared to meet the employer in the face of the world-wide depression.” From the Awarua Dairy Factory Coy., Ltd. —“As every third year, when producers’ representatives on the Dairy Control Board for Wards 5, 6 and 9 are elected, the election takes place in September, whereas for two years the representatives for the other six wards are elected in June, and as the chairman is elected in July, we consider it desirable and would urge that the election for all wards be held in the month of June.”

From the Aparima Dairy Factory Coy., Ltd.—“ That steps be taken to keep milk suppliers’ cheques free from the operations of . orders through mercantile and other trading firms.”