FREEZING WORKS COMPANY
SOUTHLAND FARMERS APPROVE FORMATION MEAT BOARD’S OFFER OF MONEY AT 1 PER CENT (New Zealand Press Association) INVERCARGILL, June 20. Southland Federated Farmers unanimously approved the formation of a farmer-owned freezing works company in Southland when branch chairmen and secretaries and a committee of the New Zealand Meat Producers’ Board met this morning. The board’s committee held meetings with the directors of the Southland Sheepfarmers’ Company, Ltd., and the Southland Freezing Company, Ltd., last week. Today’s meeting was called to bring members of the federation up to date on the latest negotiations.
The question of the new freezing works in Southland had given the Meat Board a great deal of concern, said the deputy-chairman of the board (Mr F. C. Johnstone). It was important to get the new works operating. Southland’s growing beef industry had "taken a knock” this season from which it would take some time to recover.
The board was prepared to finance 60 per cent, of the cost at 1 per cent, interest, Mr Johnstone said.
A new freezing works that paid the full rate of interest could not compete with existing companies built at a low cost, Mr Johnstone added. A new works in Southland operating at high costs could affect the freezing charges for all the South Island. At present the province was enjoying one of the lowest rates in New Zealand, and the board did not want to see the freezing rates raised because one company was operating at high costs. If the farmer-owner works obtained a big part of the capital at 1 per cent., it could compete successfully. The board would grant a freezing licence to a farmer-owned company as soon as it was in a position to apply, he said. It would get a better hearing if the application were made on a united front, and not by just one section of Southland. A united Southland was necessary to justify the board’s action in promising to advance 60 per cent, of the capital at the low rate of interest.
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Bibliographic details
Press, Volume XCI, Issue 27690, 21 June 1955, Page 12
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341FREEZING WORKS COMPANY Press, Volume XCI, Issue 27690, 21 June 1955, Page 12
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