C.F.M. Set To Meet Challenges Ahead

Press, Volume CX, Issue 32209, 30 January 1970, Page 17

C.F.M. Set To Meet Challenges Ahead

“There are considerable challenges ahead for the meat industry in New Zealand,” said Mr L. D. Cotterill, chairman of the Canterbury Frozen Meat Company, Ltd, when the annual accounts of the company were released today. “In our C.F.M.’s news of December last we referred to, and concurred with, Sir John Ormond’s statement that the New Zealand meat industry has great need of scientific support, adventurous thinking and marketing expertise.

“In the past year the company has taken a number of steps to further improve its abilities to meet future marketing opportunities.”

The annual report refers to the major work which has been carried out in the three works. “It is of the greatest . importance that the standards now established in all our works are such that C.F.M.’s products are acceptable in the most stringent of the world’s markets. “During another year of record activity, the board has been quietly taking steps to review and improve the company’s administrative and management structure and to evaluate its group operating policies.

This envisages a period of consolidation and expansion of the company’s operations.

The two activities are being implemented concurrently, since the latter cannot be deferred until the former is completed. Expansion in any marketing operation must occur when opportunities present themselves in the market place. The board has taken the unusual step, for a traditional business, of engaging over seas management consultants, with well-established New Zealand associations, to review the organisation, top management, and administrative structure of the company. Stage one of this report should be available to

the directors within the next three or four weeks. “The board has unanimously resolved to nominate the company’s general manager, Mr K. F. S. Cox, to fill the vacancy on the board arising from the sudden death of Mr S. E. Mair in December last. This step is proposed as a recognition of the vital importance of enhancing the affinity of the board with the day-to-day operations of the company. With the general manager sitting as a director, the board feels that the relationship between itself, its staff and its shareholders will be strengthened during the period of change and expansion which is under consideration.

As announced, the net profit for the year was $1,564,496 to give an earning rate on the increased capital of 39.9 per cent and a rate on average shareholder's funds of 19.5 per cent The dividend of 10 per cent, plus a bonus 3 per cent, took $462,750, and was covered 3.4 times.

The balance sheet reveals the great financial strength of the company, with reserves rising more than slm to $4,778,852, and a liquidity ratio of 1.3 to 1.