FARMERS’ FREEZING CO.

Bay of Plenty Times, Volume LXI, Issue 10923, 24 September 1932, Page 3

FARMERS’ FREEZING CO.

Dairy Produce Storage Rates FURTHER REDUCTIONS. Mr J. E. Makgill, Chairman of Directors of the Auckland Farmers’ Freezing Co., Ltd., in his report to the annual meeting of the Company yesterday stated: The past season has proved a satisfactory one for our Company and has given proof of the wisdom of the policy we followed at the beginning of last year and which I touched on in my remarks to you at last year’s annual meeting. We had made a reduction in our freezing rates on dairy' produce as from July 1, 1931, which not only passed on the whole of the saving in wages by the 10 per cent, reduction which then came into force, but a very substantial amount in addition, in pursuance of the policy which has been the aim of our Company since its inception, to provide the services needed by the farmers in the handling of their own export produce, at the lowest possible cost, consistent with sound economic practice so as to meet the growing needs of the Province and so maintain the principles for which our Company' was brought into existence. I pointed out last year that we had some doubts as to whether we could again maintain the rates charged on meat products. We deckled to make no increase; in this manner passing on the reduction in wages. The position of the market for offal products became even worse during the past season, but the increased output which I will call your attention to later on, helped materially to bring the season to a. satisfactory conclusion. We have again been able, since the 30th June accounts have been analysed, to announce a further reduction in dairy produce storage rates; and shoul dlhe wage rates be further reduced, as is probable during the season, that also will be passed on, on dairy produce. While as yet our meat rates for the coming season have not been fully reviewed, it is the hope of our Board that we still may be able to refrain from increasing the existing rates. The price of meat products is such that even a small increase has an important bearing and unfortunately as yet there is not much prospect in view of improvements in prices.

During the past season, we have had to meet a very strong bid by the Westfield Freezing Company to obtain a portion of the freezing of dairy produce. They registered a Company callel the Auckland Dairy Produce Cold Storage Company Limited. This new Company applied for a license for grading dairy produce at the Westfield Freezing Company’s Works. I need not enlarge on this matter which has been very fully before the' farmers of the Province. As yet the Government judgment has not been delivered as to whether they will follow or ignore the almost unanimous verdict of the dairy farmers of the Province, backed by the decision of the Dairy Control Board, asking the Government not to grant this license, which would break into the farmers’ own organisation for manufacturing and handling their dairy produce to the export ships’ holds. The farmer is, of course, justified in looking fully into the rates charged by our Company. We are confident that if this Is done fully and fairly, taking all the relevant factors into account and considering the quality of the service rendered, he will find that our rates are as low or lower than any in the Dominion and that the service rendered is both efficient and economical in the truest sense, and equitably balanced between various interests. These are not simply bald statements but evidence can be produced backing them.

While on this subject it is interesting to note the storage charge in Sydney on butter. It is not evident, however, exactly what this charge covers. The first week’s charge is 5Jd, the weekly charge following the first week’s storage is lid per box. Thus the first four weeks will cost lOd and each succeeding month 6d. Our rates are now for these periods 7id and 2d, hut without fuller details the comparison may be of little value.

Our Company has grown from a very small beginning Into an organisation which is noAV handling through its four works about onefifth of the whole export trade of the Dominion, Avithout ever having become dealers in the products hand}e( j_indeed rather because It has never become dealers in these products. The policy which has achieved this considerable influence in the freezing trade of the Dominion,which is the key to allour export of produce trade, is to pay the shareholders a fair remuneration for the capital they have provided and give the farmers of the Province the use of the capital accumulated during the life of the Company free of interest. There is no reason Avhy this policy should not be carried on indefinitely. Is it not much better for the farmers to provide the capital themselves than part with the freedom of their freezing facilities. In the Profit and Loss Account there was £3,237 Is 5d less brought forward from the previous year. The Working Accounts showed a less profit by £1,359 n6s lOd than the previous year. The General Expenses, etc., showed an increase of £64 10s Sd which is after having to provide an extra £IOOO for income tax and also it must be remembered our volume of business is steadily increasing the ratio of these charges to volume shoAvs satisfactory reductions and efficiency is being maintained. The net, profit shown for the year is £1,423 7s 6d less than the previous year. A sum of £17,538 0s 3d is available for allocation and your Board recommend the payment of a dividend of 6 per cent, absorbing about £13.950, and that the balance of about £3,838, be carried forward.