FREEZING WORKS IN SOUTHLAND

Press, Volume LXXXII, Issue 24820, 9 March 1946, Page 3

FREEZING WORKS IN SOUTHLAND

PROPOSAL FOR NEW ORGANISATION

MEAT BOARD AND FARMERS TO CONSIDER PLAN “ The Press ” Special Service

INVERCARGILL, March 8. The proposal for the establishment of an additional freezing works in Southland will be submitted to meetings of members of branches of Federated Farmers of New Zealand throughout the province. The proposal will also be submitted for consideration to the Meat Producers’ Board.

These decisions were made at a meeting of members of the Meat Board and of the meat and wool section of the Southland branch of Federated Farmers held recently. The meeting was private, but the decisions were announced at a public meeting of sheepfarmers, representatives of freezing companies, and others interested held later.

Mr C. J. Speight said that it was estimated that 300,000 head of stock had been sent out of Southland last season. It was believed that , half of this number could be dealt with in Southland if new works were established, or if something could be done to relieve the congestion which seemed to be inevitable at the present works. It had been pointed out that it was a good thing to rail a certain amount of stock out of the province, as it would not be satisfactory for the farmers of Southland if there were no outside competition. The members of the Meat Board present were not prepared to make any definite statement regarding the proposal to establish new works in Southland, but said they would submit the evidence they had collected in South-

land to the Meat Board for its consideration. The proposal for the establishment of new works had tfeen fully discussed at the meeting. It had been suggested that the new works should be established either by a farmers’ cooperative company, or by a proorietary company, or by a proprietary company and capital from Southland farmers on a 50-50 basis. Alternatives Discussed “We have been deeply impressed by the fact that the farmers of Southland seem to be generally in favour of the establishment of another freezing works,” said Mr J. Begg. He added that the members of the board present could only report to the board. The decision must fest with the board. He would remind the farmers of Southland that if a co-operative company was to be successful, they would have to subscribe capital, send their stock to the company’s works, and stick to the company through thick and thin ind through good times and bad. Before deciding to establish cp-operative works they should give full consideration to the alternatives, one of which was increasing the capacity of existing works. That would result in a considerable saving in oyerhead expenses. They should also remember that co-operative works would have to run the gauntlet of competition, but they had done so successfully in other places. Mr A. Derbie, manager of the Southland Frozen Meat Company, Ltd., said he was glad that they had got the figure of fat stock sent from Southland down to 300,000. because he had seen the figure placed as high as 500,000. He suspected that these figures were exaggerated and included a good many store stock.

It had been alleged that the farmers were 1 not getting a fair deal, but he would remind them that the freezing companies were told what prices to pay, and that freezing charges and prices for pelts and wool were fixed. The freezing works in Southland had not worked to capacity for a Jong time.