Meat funds released to buy Kaiapoi

Press, 3 October 1979, Page 2

Meat funds released to buy Kaiapoi

The Government has ap-l proved the use of meat industry reserve funds to buy the total shareholding of N.C.F. Kaiapoi. Ltd. The Associate Minister of Finance (Mr Quigley I said yesterday that the purchase price would be $7 a share. The final shareholding would be C. S. Stevens and Company, Ltd, 20 per cent, and producers 80 per cent. C. S. Stevens and Company is a Christchurch meat and general exporter. The Government had refected earlier offers by the Meat Board mainly because it was not satisfied the cooperative could be run profitably only on behalf of farmers. Mr Quigley said. "In agreeing to the current , proposal, the Government has noted the possibility of considerably im-

(proved throughput, and the ■ advantages from the proposed association with C. S. i Stevens, of joint use of works facilities, an extended killing season, and management and marketing ex- : pertise.” Mr Quigley said an I:extended season would sub■istantially increase profits, l and the joint use of the C. |S. Stevens facilities would - minimise extensions to the Kaiapoi works. The company also had a policy of buying throughout the year. "Although there were ■ some reservations about the price offered for the shares, on the basis of the sums f done by the Meat Board there appears to be every prospect of the company’s becoming a profitable farmers’ co-operative," Mr Quigley said.