Pastoral Hlgs sees lower profit

Press, Volume CXIV, Issue 33563, 18 June 1974, Page 20

Pastoral Hlgs sees lower profit

(New Zealand Press Association) AUCKLAND. New Zealand Pastoral Holdings, Ltd, expects that its profit for the current year will be considerably lower than last year’s earnings of $74,649. The company runs the 5000-acre Waitoru station, near Te Kuiti.

The chairman (Mr D. N. R. Webb) says that the disturbing feature in primary production has been the effect of inflation on costs. This has been accentuated by the lower returns from produce, particularly beef. He says in the interim report that since the start of the season the return for a 250 kg prime beef carcase has fallen by about $35. Costs of farm inputs have increased over-all by about 14 per cent. Off-farm costs, which reflect on reduced 'payouts to the producer, have increased in some leases by between 24 'per cent and 45 per cent. With this, the revaluation of the New Zealand dollar is estimated to have cost the primary producer sl4om, he says.

However, the company ex

pects to maintain the dividend for the current, year at last year’s rate of 6 per cent. This is after allowing for the additional capital resulting from the take-over of Agricultural Industries of New Zealand, Ltd. Profit reserves stood at $75,182 at June 30. Two properties have been acquired so far -— a 443-acre dairy development farm on the Hauraki plains and a 165-acre town-supply farm in the Rotorua district.

Consideration is being given to the expansion of activities based on Waitoru stations.