DAIRY INDUSTRY

Wairarapa Times-Age, 2 September 1938, Page 7

DAIRY INDUSTRY

OPERATIONS OF MASTERTON COMPANY DROP IN PRODUCTION. BUT INCREASE IN RETURNS. There was only a small attendance of shareholders and suppliers at the annual meeting of the Masterton Cooperative Dairy Company, Ltd., held today. The chairman of directors, Mr J. C. Ewington, presided. Mr Ewington said that as the result of the hot, dry summer supplies had fallen off with the result that production decreased by 123 tons as compared with the previous year. The position was much the same throughout the Dominion, the average drop in production being about 7 per cent. In spite of the decreased output, however, returns from the sale of butter showed an increase of about £lOOO on the figures for the past year. The fact that the company only had a paid-up capital of £3892, Mr Ewington added, was a handicap. In the early days of the company it had been made imperative for suppliers to take up shares in proportion to their production. If a supplier failed to take up shares he was penalised jd per lb butterfat. At the end of the season the supplier had the option of taking up shares and being credited with the amount for which he had previously been debited. In face of keen competition, however, factories started to accept supplies without any conditions regarding shares. He hoped that legislation might be brought down again making it imperative for suppliers to take up shares. That would be a sound policy and enable the industry to remain on a sound footing. LOCAL MARKET. Discussing the local market, Mr Ewington said he doubted very much if there was any profit to be made out of the sales on the local market. The grading of Masterton butter had been exceptionally good, the average grade being 94.23 points. They had a complete factory and equipment and could continue to maintain the high grading. The staff at the factory was second to none. After analysing the balance sheet, Mr Ewington said that the block system of dairy instruction now in force had resulted in the doing away of a great deal of overlapping. “Until such time as zoning is brought to a satisfactory issue in this district,” added Mr Ewington, “we will cctntinue to experience trouble with cream cans. We have competition and not co-op-eration at present but before this season closes I am quite certain that zoning will be brought nearly to, if not complete finality. When zoning does come it is going to be all for the good and will make for much more economical working.” Mr Ewington said that occasionally he heard complaints about the company’s store-keeping operations. In point of fact, however, they only did a very limited business and in no way affected local business firms. ELECTION OF DIRECTORS. The three retiring directors, Messrs J. C. Ewington, L. A. Keats and J. Stempa were re-elected unopposed. It was decided to make a payment of a dividend of 5 per cent on paid up capital. Messrs Sellar and Sellar were reappointed auditors. ' Votes of thanks were passed to manager (Mr W. C. Batty), secretary (Mr C. Van Praagh) and to the factory and the clerical staffs. Reference was also made to the good work done by the carriers. ANNUAL REPORT. QUALITY WELL MAINTAINED. The thirty-sixth annual report, which was adopted, stated: “In common with other districts, we suffered a reduction in production owing to the dry spell experienced during the summer. The exceptional dry weather throughout New Zealand was responsible for a drop of 7 per cent in Dominion production. “We have paid to our suppliers up to June 30, 1938, one shilling per pound of butterfat, and in July we made a further payment of 2d per lb butterfat' covering the season, from July 1, 1937, to June 30, 1938. We will make, in September, a further payment of id per lb butterfat, from July 1, 1937, to June 30, 1938. “Your directors recommend payment of a dividend of 5 per cent on paid-up capital. “Our local trade consumed 45 per cent of our production, which goes to show the excellent demand for our butter.

“The quality of our butter has been well maintained, the average grade, 94.23 points, being 10th on the list for butter graded at Wellington Grade Store. We also secured twelve prizes at the main shows, being second in the New Zealand Championship (Auckland) and obtaining two firsts and one second prize for butter taken at random from grade stores. “The directors wish to express their appreciation to the staffs and cream lorry drivers for their services to the company. “The retiring directors, Messrs J. C. Ewington, L. A. Keats and J. Stempa, being eligible, offer themselves for reelection. “Mr G. W. Sellar, F.1.A.N.Z., F.1.C.A., the retiring auditor, offers himself for re-election.”