Farmers urged to buy Kaiapoi shares

Press, 7 June 1980, Page 19

Farmers urged to buy Kaiapoi shares

By

DOUG FYFE,

agricultui’al editor

C. S. Stevens and Com-j pany, Ltd, the Christchurch; meat processor and exporter,; involved in the purchase of the Kaiapoi freezing works* of N.C.F. Kaiapoi, Ltd, with producers, has urged produc-l ers to take up shares in the enterprise. . ' ; In a Tetter to farmers in Mid and North Canterbury; 'and the West Coast, the (managing director of Stevens (Mr R. H. Trounce), (says that Federated Fanners: and Meat Board representa-: i fives have worked assi-j duously to give farmers the; first opportunity for many; years to establish ownership* of a works in their area and; “it is essential in both poli-j tical and commercial tennsl, for N.C.F. Kaiapoi to bep given solid support at grass; root level. ■ “They (the terms) are gen r! erous and payment can bespread over a considerable! period.' but it is essential for; the issue to be uplifted' within the stipulated period. I If you hesitate we believe you will lose a golden opi portunity. “The Stevens Group is confident that investment in N.C.F. Kaiapoi represents a great opportunity and we are backing our judgment to the tune of upwards of SIM in our 20 per cent shareholding and accompanying costs.” The letter also explains something of the history of the company and the marketing and managerial skills that it will be bringing to; Kaiapoi. In the last year it saysthat the Stevens Group, including the Tvholly-ow.ned subsidiary Ashley Meat Exports, Ltd, has had export earnings exceeding S2SM. The group has been operating at the Alliance works in Southland since it opened and in 1978-79 put 300,000 : sheep and lambs and also 15,000 cattle through that ’ works. ; Some 100,000 lambs and! sheep were also killed at

N.C.F. Kaiapoi in the same; season and in the coming season the group would, be looking to handle 300,001), lambs and sheep from: Kaiapoi, which was only (3km away’ from the Ashley plant. At Ashley more than’ 300,000 sheep and lambs had been processed in 1978-79,- ! including part of the 100,000 ( ; killed by N.C.F. Kaiapoi on its behalf. r ; Until their participation in! Kaiapoi. Mr Trounce said That. they had been forced to buy from existing freezing works, which had precluded them from competing in the field . and dealing directly; with farmers. Now, however.; there would be another com-i petitor in the livestock mar-; ket. i It is recalled that the Ste-’ vens Group was one of the: pioneers of the mutton trade; ;with Japan in the late 1950 s * and more recently its so-, iphisticated in-depth Ashley) processing plant had enabled it to sell quality iamb andbeef cuts direct to retail outlets around the world including those in Denmark,’; Belgium, Switzerland,; France, the United Kingdom,! Japan and the Middle East. | Through its shareholding: in Kaiapoi it was now assur-j ed of having access to fresh meat and it was this which* was the core of their en-. thusiasm and confidence in; the future. T Shareholders who put; their stock into pools I through Kaiapoi would be; able to participate in the in-, : depth processing at Ashley I (and at the same time Ste-1 I vens would be extending their expertise into the! Kaiapoi plant. Ashley) worked throughout the year* and Stevens would be; encouraging farmers to ex-1 tend killing through Kaiapoi into the off-season. I

The letter says that sales of meat worth S2SM annually are not made without “know-now and ability both here and overseas.” It was worth noting that in the French supermarket chain. “Casino,” Ashley gigot (lamb leg) retailed at ithe same price as the fresh i French product. This was because the quality was as i good as the local one. Mr Trounce quotes from a letter to the Minister of Foreign Affairs and Overseas 1 Trade,(Mr Taiboys) from the; Viehborse, the buying organ-j isation of the Swiss Master i Butchers’ Association repre- ■ senting about 2800 butchers. I Dated August 17,- -1976, it; states: “during his visit Mr I Zaugg has visited various; plants and eventually has: come to the conclusion that only the abbattoir of Mr C. S. Stevens, Ashley Meat Exports, Ltd, Christchurch, was in a position to comply with the requirements of this market. . . containers with special cuts have b.een regularly shipped from New Zealand to Switzerland.' The presentation and trim of the lambs has been a success and sales have risen to an extent that Ashley Meats can barely meet the demand. There are still some minor mistakes to eliminate. We, however, wish to point out; with full confidence that I Ashley Meats deserve full] recognition' for the efforts made so far. They manufac-l ture a product which suits the buyers’ requirements.” “Mr Trounce adds that the continued confidence of Viehborse in Stevens’s ability to produce quality products has been clearly .demonstrated by their purchase of increasing quantities of meat in succeeding years, including the present season.