CO-OPERATIVE FREEZING COMPANY

Press, Volume XCVI, Issue 28448, 30 November 1957, Page 17

CO-OPERATIVE FREEZING COMPANY

North Canterbury Sheepfarmers’ Year Reviewed

The forty-second annual general meeting , v asheld in the Chamber of Commerce Lihrl™ ~ h ?£u holt l ers November 28, 1957. The chairman, Mr A P Rrun nver a small attendance. In moving tb»« ? ru F?’ P resif ted report and aecounUthe chafJan fald?- " ° f the

This past year has been one of fonsiderable interest in marketing ; fl evelop men^s and in the prices 1 being earned for the primary I products of this cobntrv overseas. | while this interest is the immedi- | ate concern of the farmer, it is 1 glsO of vital importance to every rnan. woman and child in’ New 2 Zealand, for upon the export of | car surplus production depends | tag standard of living of the | people of this Dominion. While prices for our dairy products naturally have given cause for deep concern, a very pleasing factor has been the buoyant prices for our lamb and mutton exports. Wool prices maintained very satisfactory levels, too. during the year, and it is only in the past few weeks that a decline I has been noticed. Even so, the I range of prices at recent’sales I cannot cause any great sense of I misgivings. I The killing season of 1956-57 I opened at Kaiapoi in the last I yeek of October. Due to a very | good sne’l of weather, lambs were J veil forward and it was not long i before full killings were in operaI tion. There was not the same I rush as was exnerienced in the [ previous year when the drought set in. but nevertheless the works were kept at canacitv until the middle of March. Heavy rain which fell toward the end of February and early March was followed by mild autumn weather rejuvenating pastures and enabling farmers to hold on to more stock just at a time when many were wondering whether they would have to quit or not. For a short neriod killings slipped but later picked up as the favourable autumn assisted the fattening of the lat°r lambs. In common with other South Inland works, killings were below those of the previous year’s record, the larged dron being shown in sheep. This was only to be expected following the large numbers which had to be slaughtered because of food shortages in 195556. and the d*op in lambs can be partiv attributed to the fall in the lambing percentages and partlv to the rebuilding of flock numbers.

The better seasonable conditions did show an improvement in weights of stock, and at Kaiapni the average of exportable lamb increased bv nearly 11b per earcase, while ewes improved 31b per head. Sheep Statistics: Figures compi’ed at the end of June. 1956. showed the total sheep population of the Dominion as over 40 million for the first time, with 27 million breeding ewes, of which 144 million were in the North Island and 124 million in the South. The percentage increase in breeding ewe flocks for 1956 compared with 1955 was 3.6 per cent, in the North and 2.7 per cent, in the South, this being the first occasion for many years that the increase has been higher in the North. In Canterbury the increase Was only .8 per cent., bv far the lowest in the South and was probably due to the killing off of sheep due to the drought. Nevertheless there is a challenge here which Canterbury cannot ignore. In Canterbury there is the prospect of extension of irrigation and the development of new schemes particularly between the Rakaia and Waimakariri rivers if these schemes can be made attractive enough financially. Aerial top-dressing on hill country has already proved that pastures can be produced on which stock can be fattened. In many areas more use could be made of heavy machinery and spraying equipment for the eradication of gorse and blackberry and tasks previously thought to be uneconomic if not impracticable are now within the bounds of nractical execution.

Aerial .Topdressing: It is interesting to note the rapid growth of this industry. In 1950, seven operators distributed 5000 tons of fertiliser on 49.000 acres. In 1957 these figures increased to 56 operators distributing over 400.000 ton 1: over 3 853.000 acres. Exr'o-t Schedules: Once again th® English market preference for light-weisht carcases was reflected in the schedule paid in New Zealand. The opening schedule was slightly less than the previous year, but due to a hardening in wool prices and an unexpected rise on the Smithfield meat market, the schedule was increased progressively during the season, and on April 29 the price for the under 281 b lamb reached 30d. so passing the previous record of 29£d. which was touched in the wool boom period of, 1950-51. The schedule was increased again before the end of the season; the final price for D’s being 3Ud and for 2’s being 29|d. Second quality lambs were one P?nny lower than their respective first quality weight range counterparts throughout. Meat Exncrts: Although at one Period it was thought that New Zealand moat exports might be “early 20.000 tons below the previous year, the final figure was 13.000 tons. On the whole, total heef production was much the as 1956 although there was 8 reduction in cow beef quarters V’hich was offset by an increase in bo*er beef.

Practically the whole of the deficit was in the mutton and iß mb; lamb dropped bv 4000 tons •M mutton by 9000 tons. to September 30. 1957. SfiO.OOO tons had been exported Jf which 62.000 tons went to marJcts other than the United Kingdom. This figure is almost identical with the quantity handled year, but the Soviet Union did not purchase any New Zealand meat this year and the Suez p 1 eliminated inquiries from Greece and Egypt. As an offset. *®Pan has entered the market and c°nsiderable quantities of beef have already been shipped. It J’ interesting to compare some of ‘he quantities received over the IBRt two years: The United States of America m 1956 took 1154 tons and 16.890 •on? in 1957; Janan in 1956 took tons and 13.234 tons in 1957; gtesia in 1956 took 5639 tons and bathing in 1957; Italy. Greece and "Synt. 17.845 tons and 4427 tons ® 1957.

; -Imports into the United KingMpu— Total meat and meat prQ-

ducts imported by the United ?mber°3l 3 ’ ear ended Dec ' tlmn 1 400n£r. Were a llttle more Worn, 000 tons - an increase of .tons oyer the previous year ‘ II!’ ?n° Ut 150000 tons lower than the 1938 figure. wwer Once again Argentina registered but ne . arly 90 000 tons. 120<™ ‘°tal of 363 ’ 000 to”® 120.000 Inns below their 1938 exuage - . In 1938 - New Zeaw« Is are ° f . the to tal imports uas 18 per cent., while last year th n Percentage was 26 per cent. The Commonwealth Economical Committee reports that in 1956 he consumption of meat per head in Britain for the first time in post-war years exceeded the 193438 average of 981 b by approxiper head ‘ Britain is likely to remain the main outlet for the bulk of New Zealand meat production for many years to come. Under the present agreement, New Zealand meat has free el, to y ,'nto the United Kingdom until 1967. There is no guarantee of minimum price by the United Kingdom Government during this period, as is the case with Australian meat, but this Australian guarantee was secured at the cost of limited access to other markets, and because of this condition, its value to the Australian producer is questionable. Indeed it is noW generally agreed that New Zealand’s freedom to participate in the new markets in the U.S.A, and Japan may prove of very real value in the years ahead.

Shipping:— During the past year the shipping position showed a marked improvement and at Kaiapoi the storage problem did not cause any trouble. The ordering by the New Zealand Government Railways Department of additional refrigerated rolling stock has been noted by the industry with approval and the delivery of the first part of the order should help to speed up the loading of vessels in New Zealand. The final shipment of our 1956-57 meat was loaded at the end of October so that the stores were clear of old season’s meat before this year’s came along. Shipping Freights:— At the beginning of the year it had been agreed that the shipping freights would remain unaltered until September 1, 1957, and the Shipping Lines had given notice of their intention to seek an increase after that date. An agreement was reached between the lines and the various boards concerned with meat, dairy produce and fruit on the basis upon which such an increase was to be substantiated. The new agreements provide for an increase of 123 per cent, for freight on meat while the increases for wool and pelts are approximately 12 per cent and 14 per cent, respectively. These increases naturally have to be taken into consideration when export schedules are being settled. The additional freight on meat alone means an added cost to the producer of nearly Is per head on a lamb carcase. Is 4d on mutton, and 15d on a 7001 b frozen beef carcase. Extension of Works: — The new freezing block is well under way with the floors and ceilings all completed and the erection of the walls now proceeding. It is expected that this store will be ready before the end of this season Much of the equipment required in the engine room has been installed and all the blast freeze plant has been delivered by the contractors. The next major alteration will be to the slaughterboard and it is hoped that the first stage will be commenced before killing ceases this season. Balance Sheet:— While killings for the year showed a decline, the profit for the year’s working improved by about £ 100, after making provision for depreciation to the maximum levels permitted by the Inland Revenue Department. Fixed Assets have increased from £96.446 to £168.792 reflecting the purchase of new plant and the erection of the new freezer block. Current assets at £81,568 are about £6OOO lower than last year. Current liabilities are £64,855 higher, and bear out the statement contained in last year’s report that reserve fund accumulated over the previous years would be fully required to finance our capital expenditure. Prospects for 1957-58: All areas in Canterbury experienced a very favourable autumn and with plentiful supplies of feed, breeding ewes were in good condition before the winter began. Apart from a wet spell in early September lambing was carried on in good conditions and some excellent percentages obtained. The works opened on October 29. mainly to cater for the Rangiora Show lamb competition but it was soon apparent that stock had done particularly well and killings were rapidly stepped up to meet the demand for space. There is likely to bo an increase in the killings of sheep and should final lambing percentages, when they are available, confirm the early impression of a good increase, then the works can expect another full season ahead. Staff: I would like to convey the thanks of directors to all sections of the staff for their work during the year. It is only by co-oneration that the flow of stock can be kent moving swiftly along nnd the efficiency maintained. The buyers in the field had the first responsibility for obtaining supplies but f’-om that point on. works employees, foremen, engineering and maintenance astaff and office staff all had their parts to plav before the job could be completed. In the office, a new svstem of mechanised accounting had proved of considerable benefit in enabling more expeditious service to suppliers and the staff were to be complimented on the smoothness of the changeover. Gentlemen. I have much pleasure in moving the adoption of the Annual Report and Accounts which carry with it approval of the Directors’ recommendation for "avment of a 51 ner cent. Divi-1 dend on Preference Share* and 6 ner cent, on Ordinary Shares the tran*f— to the General Reserve of £5OOO.

Comments on Report.—The motion was seconded by Mr E. A. Foster who congratulated the Chairman on the scone of the subjects in his and of the interesting comparisons which were drawn. He pointed out that assets had increased by nearly

£70,000, most of this being in the nature of Capital Expenditure, which was proof that the Works were being kept up to date. He was very concerned about the structure of the Lamb schedule whereby light weight second quality lambs were being paid for at a higher price per lb. than some of the prime weight ranges. He considered this to be wrong in principle as after all, a second quality lamb weighing only 271 b was really only a store lamb. If this system was to continue he was sure that it was not going to be to the advantage of the name “Canterbury” Lamb.

When the motion was open for discussion, Messrs D. G. Smith and F. A. Shcat commented on some aspects of the year’s activities and asked questions which were fully answered either by the Chairman or the Secretary. The motion was then put and ca r ried unanimously. The Chairman reported that, as no other nominations for appointment to the Board had been received, the two retiring Directors, namely himself and Mr C Hileendorf, had been returned unopposed.

No nomination for the position of Auditors to the Company had been received and therefore the present auditors. Messrs Hicks and Ainger. continued in office. It was moved by Mr F. A. Sheat seconded by Mr A. K. Johnson that the amount of their remuneration would be left to Directors to determine. Scrutineers were appointed in the event of an election for Director* during the coming year.

Mr C. Hilgendorf moved a vote of thanks to the staff. He said that many farmers' after making arrangements with the Works buyer to take delivcrv of his lambs probably did not give much heed to the organisation required before those lambs reached their destination on the London market. In actual fact these lambs and their bye-products had to pass through many hands in the Works before they were ready to put on the market and it was to all those concerned in this handling that the thanks of shareholders were due. This motion was seconded bv M v H. J. Mclntosh and carried. The Manager replied. A sincere vote of thanks and appreciation to the Directors for their work during the year was moved by Mr F. A. Sheat. From his own experience as a Director of another concern he knew that the duties involved could take up a lot of time and bring many a headache. He was glad to see the Directors were keeping the works un to date and efficient Mr P. H. Powell seconded the motion which was carried by acclamation

The Chairman thanked the meeting for that expression of confidence, and there being no further business declared the meeting closed.

At a subsequent meeting of Directors. Mr A. P. Bruce was re-elected Chairman, and Mr E. A. Foster as a Deputy Chairman for the ensuing year. I —Extended report published by arrangement.