C.F.M. buying Borthwick’s meat business

Press, 15 October 1976, Page 1

C.F.M. buying Borthwick’s meat business

The Canterbury Frozen Meat Company is expected to take over the wholesale meat business of Thomas Borthwick and Sons (Australasia), Ltd, in Christchurch, and the stockdrafting teams of the two companies are likely to be combined under the control of C.F.M.

Negotiations, which are proceeding, are expected to be successful. But some aspects of the arrangements will require Government approval, and this has not yet been obtained. These moves follow those of almost four years ago, when C.F.M. acquired the Can'/bury works of Borthwick’s at Belfast, and at the same time Borthwick’s became responsible for most of C.F.M.’s marketing. They are seen as further logical developments in the relationship between the two companies. The wholesale meat business, which C.F.M. is expected to take over, is known as Borthwick City Meat, or B.C.M. The latter company at present has only a small wholesale meat business, except in pigs.

It is likely that the business will be run by a subsidiary company," under C.F.M. ownership. It is

this transaction which is subject to Ministerial approval. Neither the price nor the method of payment has been disclosed. The transaction does not include Borthwick’s Tiki small-goods operation. The stock-drafting teams of the two companies will integrate on November 1. Since the sale of the Canterbury works at Belfast to C.F.M. both teams of drafters have been sending Stock to C.F.M. works. SO this development is seen as a logical one that is likely to result eventually in substantial savings in costs. Last April the two firms had 52 drafters in the field. C.F.M. had 36 and Borthwicks 16, but Borthwick’s has not been working south of Ashburton. Little change is expected in drafting staff in the export killing season which is just beginning, but in a year to 18 months the merging of the two teams could result in a reduction of about six drafters. This will be achieved mainly by not replacing staff when they reach retirement age. About 42 Borthwick’s staff, including office staff, are expected to be affected by the proposed changes, and wherever possible they will be absorbed into the C.F.M. organisation or into the Borthwick’s organisation in other areas. Administrative savings are also expected from the changes.