Hellaby Has Difficult Year

Press, Volume CVI, Issue 31230, 30 November 1966, Page 21

Hellaby Has Difficult Year

A mid-year downward turn in lamb and beef values was responsible for the belowaverage profit of R. and W. Hellaby, Ltd., Auckland meat exporter and retailer, in the year to September 30, according to a statement by the directors.

Although profit improved it is still below the average for the last five years, they say. Trading conditions in overseas markets were satisfactory until the down-turn, but losses in the later period were heavy. The directors say that the lower level of values in Britain are likely to be prolonged by the current economic conditions there. In addition, increased supplies of meat, particularly beef, have been available in recent months from home production and imports. This increase in the availability of beef has caused prices to fall both in Britain and Europe. The market for boneless manufacturing beef in the United States also showed a decline during the height of the selling period.

The cost of new inspection procedures for meat imports in to that market is causing concern.

A further factor affecting the company’s total returns from meat exporting has been the ever-increasing cost of diversifying export marketing. The directors say this applies not only to the cost of development but also to the cost of holding stocks of specially prepared meat to maintain an off-season service for weekly air-freighting and regular shipment.

Returns from the company's subsidiaries have been satisfactory during the year, the directors report. The weight of meat put through the freezing works recovered to previous levels and the return from by-prod-ucts remained at a satisfactory level for most of the year.

At the end of the season, however, it became apparent that by-product values, particularly for fertilisers and tallows, are likely to be lower this year. The directors express concern at the sharp fall in the supply of pigmeat in New Zealand. Killings are likely to be at the lowest level for many years.

The company’s experimental pig farm at Paerata is being expanded but production represents only a small percentage of the company’s total annual requirements.

During the year R. and W. Hellaby bought the sausage factory of T. H. Green and Company Ltd., Christchurch. The directors say that this factory will be developed to produce a full range of sausage and bacon products for the South Island market.