DAIRYING YEAR

Waikato Times, Volume 127, Issue 21178, 30 July 1940, Page 7

DAIRYING YEAR

BUTTER MANUFACTURE MORRINSVILLE COMPANY UNIT COSTS REDUCED (Times Special Reporter) MORRINSVILLE, Monday The continued progress of the Morrinsville Co-operative Dairy Company, Limited, despite the outbreak of war was the subject of reference at the 18th annual meeting of the company today. The chairman of directors, Mr F. W. Seifert, presided over a large attendance. Every year saw some special difficulty in the dairy industry, said Mr Seifert in moving the adoption of the report and balance sheet (previously published). The war had meant that the last year was no exception. He commented on the sound position disclosed by the balance sheet, and said the record output for the season had resulted in lower unit costs.. Good Management An outstanding feature of the manufacturing account had been the reduction shown in comparison with last year. This was indicative of good management, because it had to be remembered that costs had risen. Improvements to the factory had enabled more work to be done without having to increase the units of labour. During the coming season it was inevitable that as far as the factory and office were concerned there would be a considerable increase in costs. All goods were rising in price, while it was likely that cream cartage costs would advance. If the same guaranteed price were to be in force, this would unfortunately mean lower pay-out. Cost Stabilisation There had been no increase in the guaranteed price, continued Mr Seifert, but there had been a great increase in costs. If these could have been stabilised, the guaranteed price of 14.89 d would have been fairly satisfactory. However, if costs kept increasing, many dairy companies would be placed in a difficult position. Costs should be stabilised.

New Zealand could hardly ask the British Government to pay more for its butter at present, because Britain was in an extraordinarily difficult position. However, farmers were justified in asking that other sections of the community should make similar sacrifices. Third Highest The activities of the company during the year were further detailed by the secretary, Mr J. L. Faulkner, who said the progress of the company since its inception 18 years ago was indicated by the fact that it now ranked as the third highest in the Dominion. How improvements to the factory had resulted in certain economies was outlined by the factory manager, Mr J. M. Wylie. Wages costs had been reduced by 2s lOd a ton of butter manufactured, and maintenance costs had been reduced by 5d a ton. The poor grading in some instances, said Mr Wylie, was due to the condition of the stock in the early spring of last year, to unfavourable pastures and to the tightening up of grading by the Dairy Division. Lower Grading “I consider that it is definitely a move by the Marketing Department to keep down the guaranteed price,” said Mr F. C. Kennedy in referring to the poorer grading returns. The grading, he said, was too severe and should be eased up. The three directors who retired by rotation, Messrs D. T. Davis, B. J. Pirritt and J. Brown, were re-elected unopposed. Sympathy with Mr J. E. Leeson in his illness was expressed in a resolution, which was passed unanimously. As a former chairman of directors, Mr Leeson had rendered great service to the company, said the chairman. It was the first annual meeting Mr Leeson had been unable to attend since the inception of the company.