Financial troubles hit company

Press, 15 February 1982, Page 43

Financial troubles hit company

In Dunedin in the early 1890 s, ‘he New Zealand Refrigerating Company was in trouble — a position that was to become chronic and then acute. Supplier shareholders who had supported the company from the start were withdrawing their support and selling their shares. The Burnside works also were quite inadequate and there was no money, available for modernising. • The only solution appeared to be to sell and negotiations were opened with Nelson Brothers, a firm which had its origins in the North Island but which by then was pne of the.largest meat operators in Great Britain. Although negotiations began in secrecy, word leaked out and public reaction was vociferously negative. The Lyttelton Times said: ■Farmers should be alarmed at the business falling into the grip of a powerful British company. The purchase of the New Zealand Refrigerating Company would be the first step.” In any case, the deal failed to mature. During the 90s, the Christchurch Meat Company thrived, opening a London office in 1896 and a new works at Timaru, called Smithfield, in 1898. The years between then and 1905 were marked by steady growth, the first official meat inspector was employed at Islington and trade proceeded smoothly. But. by the turn of the century, increasing competition for stock led. in 1905. to discussions between the directors of the C.M.C. and N.Z.R. regarding amalgamation. Rivalry between the Christchurch Meat Company and Canterbury Frozen Meat had always been strong and when the C.M.C. purchased the Timaru works, it became fierce. In 1904. C.F.M. countered this move by opening at Pareora. just south of Timaru, to intercept North Otago stock. The effect was immediately felt at Smithfield and C.M.C. looked closely at businesses in the area. Their eyes fell on the New Zealand Refrigerating Company, which had its North Otago works at Oamaru. Within weeks of the initial contact in March, 1905, the merger was completed and for a time the New Zealand Refrigerating Company ceased to exist.

It was during the First World War that the directors of the Christchurch Meat Company be- - gan to think seriously about its name. The C.F.M. company was highly unlikely to change, as the name “Canterbury” was a highly effective trading weapon which had a world reputation. j The C.M.C. had also expanded considerably from its Christchurch base, having bought works in Dunedin, Oamaru, Timaru and Picton (in 1889). and I was about to have its first North I Island works at Wanganui.com- 1 pleted. The latter, Imlay, on the Wanganui riverfront opened in Noveniber, 1916. Action was taken and by Supreme Court order on Augus’t ► 25, 1916, the "name of the said company be changed from the Christchurch Meat Company to ? the New" Zealand Refrigerating Company, Ltd.” When the war ended in 1918, the freezing industry was prospering but many farmers’ expressed dissatisfaction with the prospect of a return to haphazard pre-war conditions. They desired a greater share in the industry, and ' a farmerowned co-operative freezing works was proposed. A meeting took place in June, 1920. and. at a second meeting the same month, the name, Wai-, taki Farmers Co-operative Freezing Company, was adopted. In July, the company was registered. Then followed two years of frustration and delay while the question of a site was disputed but, by 1922, negotiations for the acquisition of the New Zealand Refrigerating Pukeuri works were completed. Also in 1922. the New Zealand Meat Producers’ Board sat for the first time — there was a strike by slaughtermen and Islington experimented with a team killing system. The year, 1925 was difficult for the young Waitaki company following, as it did, two profitable seasons without paying a dividend. The collapse of a London firm with the subsequent dishonouring of its bills left the Waitaki company in difficulties. Agreement was reached between the now Waitaki Farmers' Freezing Company and N.Z.R. to enable the Waitaki company to continue to operate under an amicable arrangement which proved to be in the best interests of both companies. In 1931, W.F.F. was able to pay its first dividend and, in 1933, it

introduced the chain method of killing. ■ . . By 1949, Waitaki ..was .able to r'educe. its debt to-N.Z.R. by a considerable amount and felt it was ready to eliminate its liability altogether. Towards the end of 1952. a final payment was made and the burden of indebtedness removed. ' In 1956, Waitaki -began manufacturing tubular products.and, in 1957, concrete posts and blocks.' Pukeuri’s new mutton slaughterhouse was completed in 1959 and a new amenities block in 1960. In 1962. a three storeyed freezing and storage block was completed at Pukeuri and, in 1964, New Zealand Meat Packers. Ltd. became a subsidiary. Waitaki's diversification continued steadily. In 1965, the company took a significant step with the purchase of the English firm. The Stock Breeders Meat Company. Ltd. and, at the same time, entered into meat exports. In 1969. a bid by the Waitaki company to take over C.F.M. lapsed but Waitaki was successful in acquiring the well-known firm of Tekau Knitwear. By 1972, the Waitaki directors decided that in order to more accurately reflect the now diverse nature of their operations a name change was desirable and Waitaki Industries. Ltd. came into being. In 1973, Waitaki Industries successfully negotiated the purchase of Swift New Zealand Company, Ltd. and, in 1974, merged with the Balcutha-based South Otago Freezing Company. Ltd. In the same year. Waitaki’s head office moved to Christchurch and the company made a successful bid for the Nelson Freezing Company, Ltd. In 1975, N.Z.R. faced the threat of a takeover from the Southland

Frozen Meat and Produce Export Company which it staved off by merging with its old dependent, now grown to a large and prosperous concern. Waitaki Industries, Ltd. Thus was formed Waitaki N.Z. Refrigerating, Ltd. The new entity was quick to spread its commercial strength further and, in October 1976, shipping interests were acquired by the purchase of a majority shareholding in Maritime Traders N.Z., Ltd.

Two years later, a substantial shareholding in Australia's largest locally-owned meat company, F. J. Walker. Ltd. was acquired. A year ago. Waitaki N.Z. Refrigerating, Ltd. held its centennial annual meeting in Dunedin to acknowledge the importance of the Otago province, people and farmers in the formative years of this major New Zealand enterprise. Today. 100 years after the Dunedin’s epic voyage, it is taking part in the industry's centennial.