COMMERCIAL

Press, Volume LXXXIII, Issue 25301, 29 September 1947, Page 8

COMMERCIAL

—♦— CANTERBURY FARMERS’ CO-OP. ASSOCIATION

ANNUAL MEETING OF SHAREHOLDERS

The annual general meeting of shareholders of the Canterbury Farmers’ Cooperative Association, Ltd., was held at Timaru on Friday. In moving the adoption of the annual report and balance-sheet, the chairman, Mr A. Austen, said the directors had received many expressions of approval of the clear manner in which the company’s annual figures were set up last year, showing comparisons with the previous year. Continuing, the chairman said: “I take this early opportunity of" expressing the board’s thanks to our shareholders and customers for the continued and splendid support accorded the association during the last year, resulting in a record turnover of £1.860,775, an increase on the year of £257,282. Gross profits at £199.832 have risen in the sum of £25.575, and expenses at £148,208 have increased by £12,223, and £6844 of the amount is accounted for by increased awards in salaries and wages. The net profit attained is £51.624, an increase over last year of £l3 352. “An examination of the profit and loss appropriation account shows that out of the net profit of £51,624, we are under a very heavy load of taxation, £29,757, or 57.64 per cent., leaving £21.867 or 42.36 per cent. We are paying 5 per cent, dividend on paid-up capital, £7483, which leaves £ 14,384 to carry forward. This amount, in our opinion, is inadequate to cover the attendant risks of business in these times of the greatest uncertainty in world affairs, and the taxation may be termed as penal. The call is for greater production, but I feel that with ever rising costs, production will suffer unless there is a searching examination of the Dominion’s position, especially in regard to the primary producers, who after all are the real backbone of the country. If primary production cannot be maintained there will be serious repercussions as affecting this country. I feel.production in present circumstances has reached its peak, and genuine help to the farming

community is most necessary. “Depreciation has been provided on all buildings and plant in the sum of £6293, and the works of repairs and maintenance of our properties including plant have been provided- in the sum of £7714. and I can give assurance to shareholders that our properties, etc., at values in the balance-sheet are taken very conservatively and are a sound and excellent asset, notwithstanding we had to make necessary purchases of further freehold during the year to the amount of £1735. Our freehold and leasehold properties stand at £125,004. as against £125,171 last year. Furniture, fittings, fixtures, and plant at £41,143 show an increase of £7590, chiefly by the replacement of cars, trucks, and clerical bookkeeping machinery necessary in the carrying on of the business. Ledger accounts amount to £187,981; this is £3991 less than last year. All are in excellent order, and of conservative value in the balance-sheet. Merchandise stocks at £234,088 show an increase over last year of £35,871—a1l good stock—and I rrfust express appreciation of the continued goodwill of merchants shown to this association in supplies of merchandise, enabling us to reach a turnover of £815.976 in this regard, an increase of £98,975 on the year.

“After seven seasons under the appraisement system, the wool clip was disposed of by auction, in conjunction with the protection of a minimum floor price arranged by the Wool Disposal Commission. The same system will operate for the coming season, the overall average reserve having been fixed at the same level as for the last season, which was 16.74 ex store, New Zealand currency. From the sellers’ point of view, the auction exceeded their most sanguine expectations, the prices for fine wools being the highest for many years. Early-shorn back and down country wools opened up well, but any wools that came off late were inclined to be overgrown and’showed discoloration owing to weather conditions. It is interesting to note that the Timaru average price at £26 4s 2d per bale, and 19.67 d per lb was the second highest for New Zealand. “The figures as compared with the previous season were as follows:

Net Average Average Bales, amount. a bale. per lb. sold. £ £ s. d. d. 1945- . 46.716 894.348 18 14 4 13.62 1946- 51.619 1,167,559 26 4 2 19.67 “The coming season promises to be a good one fcr growers, the prospects for fine wool being especially bright. The sheep have wintered well, and providing the weather is reasonably good from now on, the clip should be well above the average. During the season we handled 11,888 .bales by auction and private sale, this total being an all-time record for the association. We take this opportunity of thanking our many clients for their loyal support, and we can assure them of our very best efforts this coming

“The last season did not get a good start, as far as some districts were concerned, as in September and early October rain and heavy snows resulted in a heavy mortality in lambs and ewes. As a consequence fattening was checked, and it was not. until January that many decent drafts were killed. From then on killings were consistent, and satisfactory weights were registered. Over the season the average for lambs was lib and sheep 21b to 31b heavier than the previous killing year. At the time of writing the prospects are excellent, feed conditions throughout the winter having been good, a fact which is reflected in the outstanding condition of breeding ewes, and all store sheep. If last year’s conditions are not repeated a very good season is in prospect for farmers. Grain and Produce “The estimated area sown in wheat was 140,000 acres. This shows a drop of 25,000 acres from the previous year. The average yield was 37 bushels, and prices’ were 7s 3Jd for Tuscan varieties, 7s 54d for Hunters, 7s 7Jd for Velvet, with an increment of Id a bushel in April, May June. July, and Jd in August and September—all prices f.o.b. nearest port. Approximately 160,000 acres of oats were sown, the estimated yield being 46 bushels. The Government fixed the price of white oats at 4s on trucks. Duns were all of good quality and prices remained steady at 6s on trucks. For the coming season the price of white oats is raised to 4s 3d on trucks. There was a good de ™ and from the North Island for G. 8.0.5. chaff, which remained steady through the year at £9 f.0.b., s.i., to the farmer, with 10s a ton less for f.a.q. Unfortunately we were unable to. take advantage of all this demand through lack of shipping space. Both Partridge and blue Piussian peas were grown in most cases under contract at 10s for Partridge and 12s 6d for bl « e Prussian. estin 2?t? d area of barley was 5., ,000 acres. This again was grown under contract fqr brewers and maltsters at the Government fixed price of 5s 6d on trucks, nearest station, sacks extra Most crops turned out exceedingly weil, the barl ey being of excellent quality. For the 1948 season the price is raised to 5s 9d on trucks. tor<e L area . for Potatoes was 22,000 acres, but unfortunately the area planted was considerably short of this Prices were £8 5s f.0.b., s.i.. for Suttons Supreme and King Edward; other varieties 10s a ton less with a reduction ot ±.l per ton for undergrade potatoes. An increment ot 10s a ton was paid on June 2 ’ ®, nd . a S a,n , on July 30. There was a steady demand from the North Island, but unfortunately shipping space made it hard for us to fill North Island requirements. Prices for 1948 crop are increased by £1 per ton f.0.b., s.i. General Outlook “We have experienced a very mild winter and good spring weather conditions. The country is indeed looking well with good pastures. The lambing season is going along excellently, and giver, good climatic conditions to maturity there should be a heavier export quantity of lambs available. The same remarks apply in cattle and dairy produce, and ah should be of great assistance to Britain m her great need of support. “From the best information I can gather, wheat will be again in short supply—it is not to this country’s credit that we should have to import wheat that we could very well grow ourselves, and it is largely in this direction I spoke oi earlier of the need of genuine help to the farming community. It is regrettable to have to note the virtual collapse of export in small seeds and the statistical records of export values are bound to suffer. As a matter of fact prices got too high for the absorption of small seeds by export, but quality of our small seeds stands so high in the Cid Country that the trade may resume at a later date when difficulties in the Northern Hemisphere have been straightened out. Resumption of the small seed trade at even half the prices recently obtained would be good business for New Zealand ana serve the dual purpose for the maintenance of good pastures in this country which is reflected in feeding benefits I tender our best thanks to the general manager, branch managers, all ex ecutives and staff, for their splendid work during the year, and in this regard « would advise that the board have instituted a scheme of superannuation with one of the leading life assurance com panies on the basis of members of the staff contributing together with the asso°P.? n equal basis ’ and in regard to this latter I would advise that the board have given consideration to Ion? service of a great many of our valued employees by making a percentage in crease of contribution on their behalf On the adoption of the report and balance-sheet which I now have pleasure in proposing. I would advise shareholders that dividends will be pavable at our offices in Beswick street at the conclusion of this meeting. I would now ask some member to kindly second th«* resolution for adoption.” Advt