C.F.C.A. ANNUAL MEETING

Press, Volume XC, Issue 27471, 4 October 1954, Page 15

C.F.C.A. ANNUAL MEETING

< CHAIRMAN’S REVIEW OF PROGRESS

A comprehensive review of the activities of the Canterbury Farmers’ Co-operative Association, Ltd., Timaru, was given by the chairman of directors (Mr A. Austin) at the sixtyhrst annual meeting of shareholders on Friday. x After expressing the board’s thanks to shareholders and clients for their “continued and splendid support” accorded to the association during last year, Mr Austin said: “The net profit, after provision for taxation, amounts to £38,135—an increase of £6007 on the previous year. This satisfactory result reflects the good season enjoyed by the farming community in South Canterbury last year, and the increased support received from our clients in town and country. To the nett profit of £38,136 is added the balance brought forward from last year, £152,691, making a total of £190,826, and in dealing with this amount, the directors have declared a 6 per cent, dividend on all classes of preference shares amounting to £5636, and recommend to this meeting, payment of a dividend on ordinary paidup capital of 6 per cent, amounting to £343o—leaving a balance to be carried forward to 1955 of £181,760.

‘’During the past year, turnover in all trading departments, grain, wool, stock and land, reached a record total. Gross profit amounted to £357,153, an increase on the previous year of £50,773. The major increases in expenses are salaries and wages, up £16,567, largely accounted for by the 10 per cent, increase granted by the Arbitration Court last October. Repairs and maintenance are up £7368, which includes repairs to the machinery departments at Geraldine and Waimate—grain and seed department, Timaru—and miscellaneous repairs to buildings and plant at Timaru and branches. Miscellaneous expenses (including freight and telephones) are up in conformity with the upward trend of costs and increased business handled. Adequate provision has been allowed for in depreciation on buildings and plant, which amounts to £18,116. Additions to freehold property cost £17.429, which includes the purchase of the new building at Timaru—improvements to the grain and seed department—and the cost of the lift tower. Additional plant cost £20,935, including the cost of the new lift, and replacement of plant both at Timaru and branches. I can give the assurance to shareholders that properties and plant at values as shown in the balance-sheet are a very sound asset.

“Government investments stand at £69,800 and ledger accounts show an increase of £85,121. .Merchandise stocks at £400,013 are higher than last year by £29,926, providing a wider selection of goods for our customers. Stocks have ben thoroughly examined by stock checkers, discounts made where necessary, and we have the assurance of the stock checkers that our stocks are all of good marketable quality and of sound values. During the year, the policy of the directors in entering the advertising field has been successful in bringing before the, public the goods and services offered by the association. Wool

“Once again wool played a major part in New Zealand’s economic structure. The total greasy wool sold at auction in New Zealand for the 1953-54 season was 941,320 bales for £66,648,563, the average price per lb being 50.166 d and an average of £7O 16s Id per bale. Average weights were 3391 b. This production more than doubles the total bales handled in the 1921-22 season, the figures for that season being 467,381 bales. The Timaru figures for he 1953-54 season, including the crutching and oddment wool sale, were 59,248 bales, total amount £4,225,029. Average per lb 51.560 d. Average a bale £7l 6s 2d, and average weight 3321 b per bale. The wool clip for the first main sale in December opened up in splendid order, bright and well grown, but was slightly stronger than usual owing to excellent feeding conditions during the autumn and winter. At the March sale the offering included few choice lines, and although the wool was well grown, the majority of lots carried some yellow discolouration. “As far as your association was concerned, the wool handled represented an all-time record, and we would like to take this opportunity of thanking all our clients for their loyal support. We have at all times tried to improve our wool-selling facilities, and with the continued support of our clients, it will always be our endeavour to improve and enlarge these services. We would suggest by selling locally, farmers have full protection as regards markets. They retain a personal touch with their broker and ensure future sales for their district. “We sincerely hope that the coming season will again be a good one for wool growers, and at the time of writing we can see nothing on the horizon which would not allow us to approach the 1954-55 season with any other feeling but confidence. Frozen Meat “For the first time for some seasons, we can report a good, even fattening year, and in some respects the season was exceptional. Average weights and qualities were well above the average, and the equitable spring and summer weather was of great benefit to both farmers and freezing companies, thus enabling both parties to plan their work with greater ease than has been the case for the last few years. “Total killings were up on the previous season by 10 per cent, to 12 per cent. At the time of writing our flocks are in outstanding condition, and the prospects for a good season are very bright. For the first time for about 15 years our meat will be sold on an open market, and expert opinion inclines to the belief that our lamb will probably show a slight appreciation on last year’s prices, but no-one is over optimistic regarding ewe mutton.

Dairy Produce, Grain and Seeds “The predicted reduced dairy income did not come as a surprise to the Dominion, as it appeared obvious that Britain would not be content to retain bulk buying methods and guaranteed prices once the British economy returned to normal. The expected reduction is based firstly in the cancellation of bulk buying, secondly ,pn increased competition, and thirdly on the sale of surplus American milk powder and dairy produce in world markets. The reduced income will have the effect of curtailing by an amount equal to the reduction, and we cannot but view seriously its effect on our inelastic internal cost system.

“The past year was in many respects perhaps one of the most satisfactory experienced from the point of view of values and weather for grain and small seed over a number of seasons. Weather, always a hazard, was consistently good for the harvesting of all crops, thus ensuring good samples and excellent yields while values have been steady, making possible good returns to growers.

“The weather experienced during the autumn of 1953 prevented many areas being, sown, and although a certain amount was spring-sown, the over-all acreage was much less than the previous year. However, in spite of this, the good growing conditions made possible better than average yields. Present prospects for 1954 appear to point to a much larger area being sown. The price in 1953 was increased by sixpence a bushel, but no increase has been made for 1954. “The area in oats was less than usual, but barley was sown extensively, due to the decreased area in wheat and the greater acreage offered on contract. Both oats and barley crops produced good yields. In the case of barley, an over-supply was experienced, with the result that contracts offered for 1954 are much smaller. Oats provided sufficient* supplies for the mills, but a shortage is being experienced in coloured varieties for feed purposes. Areas of oats sown in 1954 should meet a good market. Linseed contracts were limited in 1953. The yield was good and further contracts were offered for 1954. It appears unlikely that contracts will be available for 1955. “Invariably, from year to year, the potato crop is either one of plenty,

or famine. This industry is of vital importance to many of our clients and we must therefore explore every avenue to ensure that our .clients’ produce meets a ready demand from the consumer. We lay particular stress in: good grading and attractive packing. “Many excellent yields of grass and clover seed would have been recorded but for a dry spell of weather in De-, cember. The area harvested was much Greater than that of the previous year, ncidence of blind-seed disease in ryegrass was not in evidence in the early crops but later crops proved .to be affected to some extent. All hightesting seed met ready sales in the North Island, Australia, United States, and the Continent, where weather con-* ditions had ruined many pastures and crops. An excellent local retail demand cleaned up all old stocks, and although values are high, stocks could again be short before the 1955 crop comes to hand. “Some of the most striking results in large-scale land development in the history of the conversion of New Zealand waste lands to productive farmlands has been and are being achieved by State departments in the pumice country of the Rotorua-Taupo area. The Department of Lands and Survey has in the last few years brought into production 100.000 acres of land and 20,000 acres are being sown to grass each year. The work being clone in this area, together with that in North Auckland, points to an ever-increasing demand for grass and clover seed within New Zealand. It would appear that this internal consumption of seed in our own country must have the effect of making seed production a profitable venture for farmers.” In conclusion, the chairman extended the thanks of the company to the management and staff. (Extended Report Published by