BUTTER PRODUCTION

Wairarapa Times-Age, 1 September 1939, Page 6

BUTTER PRODUCTION

MASTERTON DAIRY COMPANY ANNUAL MEETING REVIEW BY MR J. C. EWINGTON. DRY WEATHER AFFECTS OUTPUT. There was an attendance of about 30 at the annual meeting of the Masterton Co-operative Dairy Co., Ltd, held in the Y.M.C.A. Rooms this morning. The chairman of directors, Mr J. C. Ewington, presided. Mr Ewmgton said the decrease of 169 tons in the output for the past year compared with the previous season could be explained satisfactorily; it was the result of the effects of the drought. In Hawke’s Bay one company was down 300 tons, and the same thing occurred in the Manawatu district. Ho anticipated that they would have a more normal season this year. The valuation of stock had been taken at a fairly low figure Advances made to suppliers had averaged for all grades 14.9 d wnile the directors had sanctioned a further payment of £3955, which would make the payment for the season over Is 3|d per lb butterfat for all grades. Mr Ewington proceeded to refer in detail to various items in the balance sheet. He pointed out that in his opinion the directors were underpaid for the services they rendered. Referring to sales, receipts from export sales totalled £78,613 and those from local sales £51,556. The local sales were very good. It was the intention of the company to take steps to increase the share capital, as it was held that it was only right and proper that the producers should have an interest in the company. At present many suppliers were not shareholders, following on the practice during past years of accepting suppliers without the necessity of their being shareholders. It was the intention of the company to call a general meeting of shareholders during the coming year to pass a resolution to the effect that all suppliers would become shareholders. The Co-operative Dairy Producers Freezing C0.,-Ltd., in which the Masterton Dairy Co held an interest, had had a most satisfactory year. The shares held in the Freezing Co were, in his opinion, one of the best assets the Masterton Company had. Mr Ewington also spoke at some length on the company’s interest in tire New Zealand Producers’ Marketing Association Ltd.

Mr A. Keir said quite a number of suppliers had been recently zoned to different factories. He though it would be a good case in this instance to compare the Masterton balance sheet with Mauriceville’s. He pointed out that a comparison with Mauriceville showed that there was a difference of Id per lb butterfat in favour of Mauriceville. Where did Masterton lose that jd?, he asked. The differences in wages and overhead charges acounted for £928 more in' the case of Masterton, while Masterton’s manufacture totalled 916 tons as compared with Mauriceville’s 945 tons. He also raised the question of the advisability of the company dealing in stores. Mr Ewington pointed out- that differences in the amount written off for depreciation, and the sum set aside for reserve would probably account for the position. As to' the question of stores, that matter could be raised at the special meeting it was proposed to call later in the year.

Mr C. Van Praagh pointed out that the number of small suppliers had a big bearing on costs. Mr Ewington said any supplier who had a reasonable request to make garding zoning could forward his proposals to Sir Frances Frazer, deputychairman of the Executive Commission of Agriculture, and he had no doubt that they would receive fair consideration. Going on to refer to zoning generally, Mr Ewington said it had taken over two years to bring this about in the Wairarapa. The object was, as near as possible to keep the same suppliers in a company as it had before zoning. Sir Frances Frazer had carried out his duties admirably. Sir Frances Frazer’s final words were to the effect that the only possible solution of zoning in the Wairarapa was the amalgamation of the Masterton and Mauriceville companies. It would have to come sooner or later.

Mr Ewington proceeded to- refer in detail to the negotiations which took place in the Wairarapa regarding zoning proposals. He was convinced that a big saving would be effected as the result of zoning. Mi’ Ewington paid a tribute to the work of Mr Picot, Director of Marketing, in the stabilisation of the local market. Only first grade butter, now went to- to the local market, and he had just learn that it was proposed, as a further protection that one box of butter out of every churning was to be sent to the grading store as a check test on the quality of butter sold on the local market. “Is there any indication of the guaranteed price for this year?” asked Mr Keir. Mr Ewington said they should know all about it about September 12 or 15. “In the meantime you are paying out at last year's price?” asked Mr Keir. Mr Ewington said that was the case. He stated that he was sure there was not a person in the .room who would prefer to go back to' the old order of things before the institution of the guaranteed price. “The Lord forbid that,” he said. He was not saying the guaranteed price was perfect by any means. It could be improved, but it was an attempt at stability. Its principle, was sound.. Mr Keir gave notice of motion to amend article 52, which reads: “Votes may be given personally or by proxy" to "Votes may only be given personally.” Messrs A. C. Gawith, T. R. Eaton and F. J. Clarke were re-elected directors unopposed. Messrs Sellar and Sellar were reelected auditors. It was decided to make no alteration this year in the remuneration of directors. A vote of thanks was passed to the manager, secretary and staff for their services during the year, and to the Press. A tribute was also paid to the work of the chairman of directors, and to the directors. ANNUAL REPORT. The thirty-seventh annual report stated:— “The output for the season was 916.8 tons, a decrease of 169 tons on the previous year. We regret to report having experienced an exceptionally dry season which is accountable for tne falling-off of the butter manufactured. In respect of the previous year, the estimated payout per lb butterfat (all grades), which was 14.32 d, was actuaally paid to suppliers. Tb.e valuation

basis for unsold stock of butter as at June 30, 1939, was: Stocks in grading store, 15d; stocks at factory, 14Jd per lb butter. Advance payments to suppliers during the season have been: July, August Is; September, Is Id; October to June Is 2d per lb butterfat, and a further payment has been made of 2d on July and August supplies, and Id cn September, plus an additional Id from July 1, 1938, to June 30, 1939, inclusive. The average payment for all grades has been 14.9427 d. There is a surplus of £4911 for disposal. Your directors have sanctioned a further payment of £3995 16s 3d which will bring the current season’s payout to 15 5152 d per lb butterfat (all grades). Your directors recommend the payment. of a dividend of 5 per cent on paid-up capital. The dividends will absorb approximately £2OO. Provision has been made for taxes, £l2O, and sinking fund of £5OO, leaving approximately £146 to be carried forward.”