MEAT COMPANIES' PROFITS

Press, Volume LXXVI, Issue 22921, 18 January 1940, Page 6

MEAT COMPANIES' PROFITS

REMARKS OF FARIMQEB&3| UNION PRESIDENT CONCERN FOR INTERESTS OF PRODUCERS

"If the net profit of a freezing com- , . pany can be 15 per cent., then it must , have had to pay quite 15 per cent, inv tax to the Government. Therefore company . and the Government are "" - making 30 per cent, out of the far~ ! mers," said Mr I. L. M. Coop, presi-'. ; dent of the North Canterbury District' of the Farmers' Union at a 'meeting'*:*-; of the executive yesterday. ' *'- "The company is allowed to make ~ . 15 per cent., but the farmer is not.* permitted to," Mr Coop said. "I don't c blame the companies for wanting to:-., make that profit, because they are, there to make what they can for th«.,. shareholders, but it is our job to see.. that they don't get any more of the .-. farmers' profits than is reasonable." Mr Coop referred to statements made by Mr D. J. Shea, general manager of the Canterbury Frozen Meat ; Company, at a recent gathering of far- ' mers at Belfast. Mr Shea had criticised the tactics of some farmers -in' their references to the freezing companies. -.■

Mr Coop quoted a remark ol Mr • Shea, who was reported to have said* "At various times recently we appear .. to have been shot at from behind." Mr Coop said for the Farmers' ..j Union that it did not shoot from be- 7| hind. He himself said what he had to sajr in public when the press was present. ' Mr Shea had also said that the . price paid to farmers for ewes last ; season was a fair price on the market and showed a loss to the com- : panies. Mr Coop quoted from a schedule of prices paid to the farmers - for ewe mutton when the restrictions were in force. These ranged from ss. , (3d for the 451b ewe to 5s 9d for the 641b ewe. '"'",, Recently, he said, the restrictions * were removed and the price offered, . \ was 16s 8d to 17s Bd. The companies •'<{ must have had ewe mutton which »" they bought at the lower price and ; ; on which they were able to make * % considerable profit. , , ._