FARMERS’ DISTRIBUTING COMPANY

Manawatu Standard, Volume LI, Issue 6, 6 December 1930, Page 2

FARMERS’ DISTRIBUTING COMPANY

ANNUAL MEETING. (Special to “Standard.") The annual meeting of shareholders of the New Zealand Farmers’ Co-operative Distributing Company, Ltd., was held at Fcilding yesterday afternoon when Mr J. J. Bryce (Feilding), chairman of directors, presided CHAIRMAN’S ADDRESS.

“In the course of my review last year, dealing with conditions affecting our primary producers, I ventured the opinion that the unpromising outlook would cause grave concern to those interested in farm production and finance,” said the chairman in the course of his address. “That these fears were well grounded has unfortunately been amply proved during the period now under review, and our producers have experienced a very lean year. Unfortunately, the future outlook is not assuring and unless some unforeseen occurence alters the present trend, of the world’s great markets,low realisations seem bound to obtain. “Wool.—Our exports of wool from the Dominion to 30th Juno last show a drop of over 130.000 bales as compared with the corresponding period of the previous year, the figures being:—Exports to 30th June, 1930, 553.298 bales, valued at £3,156,309; exports to 30th June, 1929, 637,833 bales, valued at £15,923,157. In value, the drop’is about £7,700,000, or, in other words, our growers received about 48 per cent less for their wool than in 1929. The Dominion wool selling season of 1929-30 opened at Wellington on 14th November* 1929, when, owing to climatic conditions delayiny shearing operations, small catalogues totalling 8,000 bales were submitted bv the various woolbroking firms to a full attendance of buyers representing ail sections of the world’s wool trade. The early shorn wools displayed for buyers’ inspection compared very favourably with those of the preceding season, the hard winter and spring conditions experienced by stock in this province being distinctly reflected in the growth and style of the clip. I forecast in my address of last year that prospects for the coming season were far from promising, and that wool growers would have to De prepared to face a lower range of values than those ruling in the season before, but did not anticipate that before our selling season was completed values would slump to the alarming extent they did. We were told from time to time, when prices of wool were sufficient to pay the cost 3 of production, that they were too high and were more than manufacturers could afford to pay, bqt it seems to me that the original price of raw material plays a very small part in the cost of the manufactured article, and that if consumption is to bo increased reductions must be made in the costs of handling, transporting and manufacturing. In November, values bid for all grades cf wool were higher than growers and brokers anticipated, but competition was limited to pnly a small section of buyers, Bradford operators showing little inclination to buy at what they considered extremely high prices.. Fine wools were almost neglected, while Lincoln and strong crossbred were keenlysought after bv all sections of the trade, and these qualities throughout the season showed the least depreciation on the preceding year’s prices. Super hoggets, when submitted, sola from 14d to 14Jd per lb., a decline on an average of 4d per lb. on 1928- rates. From this sale to the end of the season the market steadily declined, and in March prices realised were from 3d to 5d per lb lower than at our opening sale, and the season of 1929-30 can be regarded as one in which growers were compelled to accept prices considerably under cost of production. The average drop in the gross price per bale sold by us at auction in Wellington last season as compared with the previous season was £9 4s Id, or roughly 6d per lb. The present selling season opened at Auckland on 25th November, when about 20,000 bales were offered to the usual attendance of buyers, and the Wanganui sale followed on the 28th November. At Auckland, according to brokers’ reports, 75 per cent of the offerings were sold, but at Wanganui, owing to withdrawals, only a small proportion of the wools originally catalogued were disposed of . Best Crossbreds are selling at from sid to 6jd, medium to good 4d to sjd, inferior 2£d to 33d, Southdown 5d for medium, up to BJd for superior, pieces and bellies 2d to 3jd, locks 3d to crutchings to 3d, figures that closely resembled the slump prices of 19201921 season. The average prico per bale of wool sold by us at the opening sale in Wanganui on 28th November works out at £6 15s per bale, a drop of £4 6s lOd, or 67.7 per cent. compared with the lossprices of the previous season, and of £l4 3s Id per bale, compared with the average for the 1928-29 season. There, appears little hope of an impros-ement in values during this season, therefore grosvers desirous of selling must bo prepared to accept extremely low and unprofitable prices. “Dairy Produce. —Fortunately the excellent "figures shosvn last year, especially for butter, svere well maintained, as far as production is concerned, the comparative figures for total gradings from August Ist to July 31st, being as follow : —Butter— 1929- 95,344 tons; 1928-29, 81,656 tons. Cheese—l 929-30, 87,253 tons; 1923-29, 86,605 tons., “These figures give an increase of 16.76 per cent in butter and 0.75 per cent in cheese, and taking the returns on a butter fat basis, the increase i 3 10.404 per cent against 10.8 per cent last . year. Although prices for our butter in London opened strongly last season, after October there was a steady decline until in April 120 s was reached. The market firmed somewhat for a few months, but has since reached the lowest level for many years. The cheese price kept steady until about February, when the decline set in and realisations were as low as 765. Recently prices havo further receded and the outlook for our dairy farmers is now somewhat serious.

“Meat Trade.—A remarkable increase is shown in the quantity of lamb and mutton shipped from New Zealand during the period from October Ist, 1929, to September 30th, 1930, viz:—

Tho average realisations per lb for the past season were less than those for 192829, but the increased quantity gives a slightly larger total value in exports. The forecast for the coming season is for still lower values, owing to the economic conditions in tho Homeland and increased competition from Australia, Argentine and South America “Live Stock Returns.—A further increase is noticeable in the annual sheep returns for tho Dominion, to April 30th tho comparative figures being:—

“Stock Market.—The past year has been a very difficult one and revenue from this department shows a considerable shrinkage, which of course was to be expected as the department operates purely on a commission basis and with lower prices returns must necessarily be less. As forecast last year, revenue from the land has been well behind that for the two previous years and unfortunately prospects for the coming season are not encouraging. The meat exporting companies have experienced an unprofitable year and are sure to operate with caution. The present indication are that prices for meat, dairy produce and wool will be anything but good. Generally speaking, stock in our West Coast districts has wintered satisfactorily and the death rate has been smaller than last year. In the Wairarapa, the past season was a very trying one for sheep frmers, owing to the continual fall in the fat stock prices and the lack of autumn growth. Luckily, tho winter was not a severe one, but the latenes sof the spring is making stock business difficult. The lambing percentages havo been fair, but tho death rate among the ewes has been rather heavy. Purchasers of ‘stores’ had still another bad season, as often after purchasing and fattening lambs they only received a profit of one or two shillings per head, and in some cases only got their money back, and in consequence less rapo thim usual is being grown in the Wairarapa this season. The fact that there was a shortage of cattle in this district a year or two ago led a large number of farmers to go in for breeding, so that there are now more cattle for sale with fewer buyers. The prices obtained for

station cattle throughout the season were good, and ‘ satisfactory prices were received by dairy farmers for their surplus stock. “Dominion’s Trade and Finance.—Comparative figures of our exports and imports as at 30til September, are as follow—l93o—Exports, £47,055,364; imports, £45,543,894; surplus, £1,511,470. 1929—Exports, £56.174,333; imports, £48,199,185; surplus, £7,975,148. The figures {inclose a drop of over £9,000,000 in exports, about three-fourths of which is in wool. Meat and butter both show slight increases owing to increased production. Imports have been reduced by only £2,500,000, thus leaving us with a contraction of £6,500,000 in the surplus of exports over imports as compared with 30th September of last year. “Economic Outlook.—As a consequence of a world-wide depression and increasing competition from other countries with outproduce in the English markets, which take nearly three quarters of our exports, we are faced w-ith lower prices and a shortage of credit. AVhilo the Dominion’s secondary industries, are sheltered by protective Customs duties, and wages are kept up artificially by arbitration awards, there is no protection for the farmers upon whose efforts the solvency of the country depends, they are responsible for 99 per cent of our exports. It is easy to preach economy and to talk of greater production, but unless relief in the form, of reductions in our direct taxation, in interest charges and in the cost of handling and transporting produce is forthcoming, numbers of farmers will find it impossible to carry on and bo forced .to leavo their farms.” ,

The balance-sheet was submited showing that tho nett profit for the year amounted to £6130 Is lOd, which with the balance of £1286 15s 7d brought forward from last year, made £7416 available which the directors recommended should be allocated as follows:—To write off £ISOO for depreciation of properties; to add £IOOO to the general reserve fund; to add £ISOO to tho reserve for bad and doubtful accounts; to reserve a sufficient sum to cover income tax (approximately £710), and to carry forward the balance, which it was estimated will bo about £2706.

Tho following, were re-elected directors:— Mesrs T. Currie (AYanganui), D. Scott (Taihape) and G. E. Yule (Featherston). Mr J. J. Bryce resigned from the position of chairman of directors owing to business reasons and .Mr. Currie, was elected, in his stead.

To To Sept., 1930 Sept., 1929 Carcases Carcases Lamb .. 6,799,094 5,967,078 Mutton .. 2,147,625 1,749,429 Beef (quarters) . .. 143,925 158,050 Pork .. 133,031 168,939

30th April, 1930 30th April, 1929 Increase Sheep Dairy Pig3 30,841,287 Cattle 1,423,867 483.820 29,051,382 1,789,905 1,371,063 52,804 556,795 *72,975 ’Decrease.