Gear gaits trading

Press, 5 August 1980, Page 21

Gear gaits trading

The Hawkes Bay Fanners’ Meat Company handle the international trading of meat processed at the Petone plant of the Gear Meat Company Ltd, the Hawkes Bay managing director (Mr lan Cameron) announced. Beef killing will be temporarily suspended, leading to a loss of 27 jobs at Petone. This is the result of the sale of the Petone plant to the Hawkes Bay group "to avoid its complete closure,” in the words of Mr Cameron’s statement He said that since the sale both companies had continued to examine areas of mutual interest to effect further rationalisation.

The merger of international trading was seen as being in line with current thinking that favours a reduction in the number of sellers, particularly to the United Kingdom market. “It is unfortunate that events over the past five years had eroded Gear’s financial ability to accept the large risk in international marketing because of the possible damage to the position of its successful domestic ” "operations," Mr Cameron said. He said that his company would continue to provide a full service to Gear farmer

clients through existing Gear buyers-, and that the Hawkes Bay owner account system would be made available to Gear clients.

-The amalgamation of the two international functions was also motivated by a decision to temporarily suspend beef killing at Petone, because of reducing cattle numbers in relation to available slaughter facilities. "It is planned to keep the beef facilities intact at Petone, as they largely meet current hygiene regulations and the decline in beef numbers is expected to reverse in the future.

“Despite past disastrous financial results, for instance the plant incurred a loss of more than $1 million in the 1978/79 season, it was still hoped to make the operation profitable next season as a result of the actions being taken. This would be partly achieved by additional stock numbers, but also by a necessary reduction in permanent overheads.

The statement by Mr Cameron indicates that there were significant losses at the Gear Meat Plant during the past season but precise figures will not be available until the annual accounts have been completed after the end of the financial year

on October I, the chairman of Gear Meat (Mr J. D.' Pottinger) said.