S.F.M. is optimistic after difficult season

Press, Volume CXI, Issue 32553, 12 March 1971, Page 16

S.F.M. is optimistic after difficult season

(New Zealand Press Association) INVERCARGILL, March 11. Last season’s London meat market could be described as a disaster, 1 the Chairman of the Southland Frozen Meat and Produce Export Company , said in his report to the annual meeting. i

Mr A. F. Gilkison said that the profit was lower in spite of increased killing at both the Makarewa and Mataura Works.

As previously reported, the net profit for the year to October 1 was $875,453, $138,102 lower than the previous year. A final dividend of 8.5 per cent was declared, making an unchanged 11 per cent for the year. The dividends will take $550,000. After the cash issue in December, 1969, issued and paid-up capital stands at ssm.

Shareholders’ funds, at $7,788,970, are $929,127 higher than in the previous year.

“Wide fluctuations in profits on the London lamb market are part and parcel of life with the major lamb exporters. The lamb schedule was set very high at the beginning of last season, and from the outset almost all the lamb exporters lost money in this major market. Killing records “Losses continued almost right through the season. From a marketing point of view this could be classified as a disaster, Mr Gilkison said. The early start to killing reduced averages for most of the season, and the New Zealand Freezing Workers’ Union go-slow in February did not unduly embarrass the company. There were killing records at both works. A total of 2,610,682 lambs was killed compared with 2,275,341 the previous year. The sheep

kill declined from 432,658 to 429,973, but the cattle kill was 30,425 compared with 19,382. Production gave the works 117 m lb of meat, 25,060 bales of wool, 7016 casks of pelts, 982 casks of casings, and 4539 tons of tallow, as well as a substantial weight of other by-products. Beef production Mr Gilkison made special note of the rise in beef production, and said that the Makarewa cattle output was doubled to 400 head a day in April.

“Beef production is increasing rapidly in Southland, and we predict the total production for the province will exceed 100,000 head before long—only three years ago, the total Southland cattle kill was 45,000 head,” he said.

Great increases in shipping freights, port charges, and storage costs in Britain, particularly over the last 18 months, had eaten into present realisations to the extent that' net returns were little better than four years ago—in spite of increased production, Mr Gilkison said. He expressed hope that North American lamb sales would pick up this year. “Looking ahead, we have confidence in our ability to market our lamb production successfully—l say this knowing full well that the Southland export kill will continue to increase.

“Britain will always be a ready buyer of New Zealand lamb, and with the many new markets being developed, we will need increased pro-

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ducer of protein food, and the level of prices to the housewife in the E.E.C. countries is very much higher than it is in England. “Bearing these two factors in mind, surely it is not unreasonable to suppose that we could overcome the hurdle of any discriminatory tariffs which may be levied against New Zealand meat. “Some experts in the trade confidently forecast that within a very short time of Britain’s joining the Common Market we could be selling a very substantial quantity of lambs to France,” Mr Gilkison said. Correction The 9 per cent dividend reported yesterday was recommended by Harley and Company, Ltd, Greymouthbased retailer, not Harley Chambers, Ltd. Harley and Company last year paid an 8 per cent dividend. The Harley Chambers dividend has not yet been announced; the company’s financial year ends on April 30.