High sales by N.Z. Farmers

Press, 5 December 1981, Page 18

High sales by N.Z. Farmers

Sales of New Zealand Farmers Co-operative Association of Canterbury, Ltd, since balance date are better than budgeted, the chairman (Mr H. W. Revell) told shareholders yesterday.

The more than 300 shareholders present learnt that retail sales had been at very high levels, and the consumer spending was expected to carry through to Christmas. “In rural services pasture conditions have been more favourable, although this has resulted in retention of stock at present and thus less throughput for , stock and station companies," Mr Revell said. “There has been no relief from high interest rates so that our large trading business involves us in substantial borrowing expense. “As to the prospects for the whole of this new financial year, we have experienced another election with a new experience in results too. We must now prepare to accept a Government which despite its unusual construction will nevertheless — as long as it lasts — develop policies which deal with inflation, unemployment, and a

weak dollar. No business or industry can expect any special relief in these circumstances ' and the pressures for rationalisation by company merger or takeover will remain. We will continue to focus on our utilisation of funds and assets, and accept that success demands total effectiveness by all involved. “The economic climate will contain strong elements of growth because whether our Government thinks big or perhaps just thinks, we can only solve the adverse trade balances best by rapidly developing indigenous energy production. There will therefore be major capital expenditure from which to share the benefits, and farm exports developments in which to involve ourselves. “We continue to examine our use of and our demand for financial muscle. Our group business utilises stocks of $2O million and funds debtors and current account advances of $23.6 million. Our hire purchase business, which we fund ourselves, increases at the net amount of $lOO.OOO-$200.000 each month,” Mr Revell said.