DAIRYING YEAR

Wairarapa Times-Age, 6 September 1940, Page 6

DAIRYING YEAR

MASTERTON COMPANY ANNUAL MEETING EFFECTS OF ZONING SYSTEM. REVIEW BY THE CHAIRMAN. The annual meeting of the Masterton Co-operative Dairy Company was held in the Y.M.C.A. Rooms this morning. The chairman of directors, Mr J. C. Ewington. presided over a large attendance of directors, shareholders and suppliers. “It is with confidence that your directors present the thirty-eighth annual report," stated Mr Ewington. "All that was possible to be done was carried out, despite the dry, adverse season, to maintain efficient production. Cream cartage costs have been reduced by ,1055 d per lb of butterfat. This has not been brought about by a reduction in charges (in fact cartage charges were slightly increased) but can be credited to the zoning of cream cartage in the area surrounding the factory. This has reduced the average cost. Wages show a reduction of ,0539 d per lb of butterfat and materials by .0949 d per lb. Economy has resulted from the installation of butter-box making machinery. Fuel shows a reduction of .0258 d this being due to the alteration made in the boiler furnace. Electric power shows an increase of ,0066 d two extra motors accounting for the slight increase. We have been fortunate in experiencing a wonderful winter and spring, and I learn that the stock of many farmers is in first-class order. Local sales showed a slight increase, but were not as good as in past seasons. Export sales of butter, which totalled £63,920, showed little difference from local sales, of £57,666. The maintenance of local sales was not a financial help to the company, but was necessary from the company’s personal point of view.”ANNUAL REPORT. “The output for the season was 862.2 tons, a decrease of 54.6 tons on the previous year. In our southern district we experienced a very severe drought which was largely responsible for the drop in our manufacture,” stated the annual report. “In respect of the previous year, the estimated pay-out per lb butterfat (all grades) which was 15.515 d was actually paid to suppliers. The valuation basis of unsold stock as at June 39, 1939, was: Stocks in grading store and factory, 14.89 d. Advance payments to suppliers during the season have been: July, 1939, to June, 1940, Is 2d per lb finest butterfat, and an additional Id from July 1, 1939, to June 30, 1940, inclusive. The average payment for all grades has been 14.964 d. There is a surplus of £5,582 12s 9d for disposal. Your directors have sanctioned a further payment of £4,965 5s 4d, which will bring the current season’s average pay-out to 15.713 d; payment for finest butterfat being 15.75 d per lb. A goods rebate of 5 per cent has been made on all general merchandise. We trust that our business with our suppliers and shareholders will increase during the coming season to our mutual benefit. Your directors recommend the payment of a dividend of 5 per cent on paid-up capital. The dividend will absorb approximately £2OO. Provision has been made for taxes, £2OO, leaving approximately £217 7s 5d to be carried forward.” “The main bone of contention, to the zoned supplier at least, is the difference of 3-Bths of a penny between the Masterton and Mauriceville Dairy Companies,” stated Mr A. Keir, in speaking to the annual report and balance sheet. "Why have we not been able to pay out as good as Mauriceville when the balance-sheet shows savings all along the line?” asked Mr Keir. “Savings on wages amounted to £540. materials £927, fuel £221, cartage and railage £241, overhead and administrative £66.” Mr Keir considered that the depreciation of 10 per cent on the assets had been too heavy. The store account had increased by £2,000, which was far too much money to be locked up. “I wish to take exception to the heavy writings down, and we should fall more into line with other companies,” said Mr Keir. RUN ON SOUND LINES. “Your directors are doing their best to keep the company run on sound business lines,” stated Mr Ewington. "The directors had seen fit to write down as they had. The question of what other companies did in the matter certainly does not concern us.” Various matters arising out of the annual report were discussed in committee. DIRECTORS RE-ELECTED. Messrs W. H. Bradley. L. R. Wilton, and V/. H. Harcombe (retiring directors) were duly re-elected directors, a ballot not being necessary. It was decided to reappoint Messrs Sellar and Sellar as auditors. “It is a disgraceful thing; calves are being carried in the same trucks as cream by some carriers," said a supplier. “In these days we have to take a wide view of such cases," said Mr A. C. Gawith. Mr Ewington stated that if cases were reported to the secretary they would be attended to. AN EXCELLENT STAFF. “We have an excellent staff from the secretary and the manager down.” stated Mr Ewington in paying tribute to the work of the staff. Reference was also made to the work of the carriers. Mr W. H. Harcombe endorsed the previous speaker's remarks. Mr C. Van Praagh (secretary) replied on behalf of the manager and staff. It was decided to send a letter of appreciation to the Dairy Board for its action in approaching the Government concerning an increase in the guaranteed price, in conformity with the trend of increasing costs.