COMMERCIAL Improvement seen by S.F.M.

Press, Volume CXIV, Issue 33577, 4 July 1974, Page 10

COMMERCIAL Improvement seen by S.F.M.

fXetc Zealand Press Association)

DUNEDIN.

The Southland Frozen Meat and Produce Export Company, Ltd, was reasonably optimistic about improvement in trading over the coming months, said the chairman (Mr A. F. Gilkison) in his interim report.

"The overseas demand for beef and mutton has been most disappointing over the last few months, and prices have been reduced to make some impression on stocks,” he said.

“Meat trading has been extremely difficult so far this year, but we still have six months trading ahead, and we are reasonably optimistic for some improvement over the coming months.” Mr Gilkison said that buying schedules had previously been set too high, and over the last three months, with

meat markets weakening all round the world, losses had been incurred by- New Zealand meat exporters and farmer’s consignment pools. He was deeply concerned about the recent high rate of inflation, which was leading the freezing industry and farmers into a dangerous position, Mr Gilkison said. “The costs we are facing to place a kilo of meat into an overseas retail butcher shop are such that the New Zealand farmer will be left behind unless some constructive action is taken.” Mr Gilkison said it was too early to give any reliable profit figure for the period under review. Much would depend on trading during the next four months. An interim dividend of 5 per cent had been announced, and as this was higher than that paid at this time last year, it must not be assumed that the total dividend for the year (to October 31) would exceed the 1973 figure, which was 17J per cent.