Waitaki sees good result

Press, 2 August 1979, Page 18

Waitaki sees good result

i Waitaki N.Z. Refrig- < erating, Ltd, has progressed satisfactorily, the directors say in the half-yearly report; they believe that the profit for'the full year will be better than last year. The recent devaluation of the New Zealand dollar will assist trading results at least in the short run. As announced, the interim dividend was raised from 6 to 7 per cent (all tax-free) — which appears to back up the confidence of the directors. Last year’s full dividend was 13| per cent; the previous year it was 12 per cent. The fall in the cattle kill of 18 per cent is serious for the company and the country, the chairman (Mr R. P. Thompson) and the managing director (Mr E. J. Neilson) say. Livestock throughput at the company’s nine works declined in the period to June 30; the sheep and lamb kill was 654,000 lower at 7,393,579, and cattle down 35,973 to 158,098. The three Otago works performed well with a total kill Of nearly 4M but Imlay, Islington and Smithfield had a difficult and frustrating season. The kill at Islington fell 17.3 per cent, at Smithfield 17.9 per cent, while the kill at Picton was 10.4 per cent lower. This compares with a fall over all of 8 per cent. The decline in cattle killed was most marked at Imlay

■ and south of the Waitaki River. Of the U.K. lamb market, the directors say that the smooth start to the new season was disrupted by the transport strike in the United Kingdom; the loss of sales in this period has necessitated storing lambs for longer than normal, and has generally depressed the market.

Sales of lamb to diversified markets have been steady, but not spectacular. The loss Of the Iran lamb market has riot had the impact that might have been expected in a season of higher production. Mutton has caused little concern this year, because of consistent Russian buying. Beef prices have now turned down, after rising steadily until April — the outlook is uncertain. All by-products met a firm demand at good prices.

Referring to meat hygiene, the directors say that differences of interpretation in meat inspection criteria by Ministry of Agriculture and Fisheries officials continued to be of some concern at most works. Valuable products and export earnings were needlessly lost. Capital expenditure in the works continues unabated; the effectiveness, capacity, and standard of buildings and plant improved tremendously. The recent Budget made certain concessions to the meat industry but the practical advantages to the

company are minimal, the directors say. Commenting on the company’s shipping venture, they say that the Waitaki has been accepted on the Tasman run and is operating profitably. The Dunedin, under time charter from the company, is also returning a profit.'

On the company’s diversified interests, they report that Tekau Knitwear continues to experience difficult trading conditions. The Town House group has been affected by the downturn in the economy but a profit is expected even with the extra overheads arising from the new Auckland hotel, which will open in November. It has been a most disappointing year for the U.K. marketing organisation. Towers International, and profits are unlikely. The rapidly rising operating costs in Towers are of considerable concern. The directors are “extremly pleased” with the profitability of the Pukeuri tannery, as they are with the Australian investment — F. J. Walker, Ltd. Kellax Foods, Ltd, and Frasers Bacon Company, Ltd, continue to trade profitably, and significantly improved results are expected from Tenderkist Meats (N.Z.), Ltd, after the reconstruction of the works at Castlecliff, which were destroyed by fire in 1977.