MEAT INDUSTRY.

New Zealand Herald, Volume LXIII, Issue 19417, 27 August 1926, Page 12

MEAT INDUSTRY.

THE FARMERS' COMPANIES. SERIOUS OUTLOOK REPORTED RESULTS OF COMPETITION. MERGER SCHEME DISCUSSED. ' [BY TELEGRAPH. —OWN CORRESPONDENT.] WELLINGTON, Thursday. ' The serious position in which many of the farmers' freezing companies in the Dominion stand was stressed at the annual meeting of the New Zealand Meat Pr - ducers' Board to-day. It was stated that if the position was allowed to contiuue there would bo no farmers' freezing companies iu existence in the Dominion two years hence. • '• Mr. J. Begg (Dunedin) said that farmers' freezing companies were in process of being squeezed out and the position was very serious. If the present prices continued on the London market ■ there would be no farmers' freezing companies in the Dominion in two years' time. The board's action in refusing to permit the transfer of certain freezing works' licenses had had the effect of depreciating freezing works as a security. The position could not remain as it was, but if it did many of the freezing companies would have to close their doors. He would like the board to :take into consideration the serious position of the companies. The chairman, Mr. D. Jones, M.P., said nothing had given the members of the board more concern that the question which had just been brought up. A question had been raised whether the whole of the freezing works of the Dominion should be amalgamated or whether they should be grouped in districts and worked in that way. The board had come to the conclusion that tho former proposition was impracticable and the Farmers' Union had endorsed this view. Mr. Begg challenged this statement. Refusai to Allow Sale. Mr. Jones repeated that tho board had given the question grave consideration. With regard to the board's refusal to allow the sale of the Wellington Meat Company to Borthwick's, he said the board had been asked to hold the matter up, as there was a proposal for amalgamation between the Waingawa and the Wellington works. The Wellington company could have sold its works for £200,000 to a local merger, and this was the amount which had been offered by Borthwick's. If a merger of th§ freezing works of the Dominion were decided upon, he said, it would change the whole system of the meat industry in Naw Zealand. The board was of opinion that this would not be in the best interests of the pastoralists. The board was quite satisfied that local mergers could be effected with advantage. Mr. Begg said that after a couple of hours' conference between a deputation from the Farmers' Union and the Meat Board the only definite conclusion come to was that local mergers were not desirable. He wanted to know under what power the Meat Board could refuse a transfer of a license, thus ruining a sale. Such a board should have no knowledge of negotiations, otherwise the position would bo most sinister. Policy ol tho Board. Mr. Jones said that during the difficult time of 1921 tho board had very carefully gone Into the position of the freezing works and had come to the conclusion that it was not in the interests of New Zealand pastoralists that overseas concerns should acquire interests in New Zealand works. That was a serious position for the board to take up, but he con-, '.ended that in the interests of the pro-, duf.ers of the Dominion they could have ijome to no other decision. Mr. C. K. Wilson: And yet you later allowed Vestey's to acquire works. ; Mr. Jones said that a proviso had been made that no sale oi' transfer could take place without the consent of the board. Th ey had ; the; Gisborne works in mind when they passed that resolution. Mr. J. S. Jessep said no bigger problem ever 1 faced the sheepfarmers of this country. In the South Island a few years ago they had one proprietary concern and then the sheepfarmers' companies came in to freeze solely. It was impossible to-day for a freezing company to exist by freezing alone. ' h Mr. D. J. Ross: What nonsense! Mr. Jessep said, the .rebates being paid to-day made it impossible for a freezing works to exist by freezing alone. Immediately the right to sell freezing works was taken away a position was created for which a remedy would have to be found. Local amafgamation would not help very much, but the sooner all the freezing works in tha Dominion were freezing only, the sooner they would get back to more geuefal competition. The Meat Board must face the position. Position in Auckland. Mr. Jones said something could, be done in the way of local mergers. Much could be done in this direction, both in Auckland and in Wellington. The board was of opinion that this was the right course, but it was not the board's place to go into the Auckland province and tell tne people there what they should do. That was the duty of the Auckland farmers. Mr. C. K. Wilson (Piopio) said the biggest cornpetitoi l >to the Farmers freezing Works in Auckland was BorthwicVs. Did the board sugjrest that a little farmers' company like the Auckland one should buy out vestey's and Borthwick's? They had a serious position to face and the board should take immediate action. Mr. F. S. Bowen (Gisborne) moved "That this meeting of delegates representing the shipowners of the Dominion is of opinion that the Meat Producers' Board should take immediate steps to endeavour to place the freezing industry on such a footing that the producers will eventually own and control the works, with the obiect of conducting' such works solely as freezing factories." The motion was lost by 10 rotes to 8.