FROZEN MEAT INDUSTRY.

New Zealand Herald, Volume LXIII, Issue 19503, 6 December 1926, Page 9

FROZEN MEAT INDUSTRY.

GISBORNE SHEEPFARMERB. PAST YEAR'S OPERATIONS. The Gisborne Sheep farm ere' Frozen Meat and Mercantile Company is rot one of those freezing companies that shbw a loss; but the chairman, Mr. J. W. Nolan, pointed out at the annual meeting that " to show a profit, however small, on the freezing side of the business " had been very difficult. Owing to East Coast dry conditions, the killings last season were 10,400 carcases less than in the preceding season, and the loss in weight was worse, being 4,loo,ooolb.—and freezing charges are made on a per lb. basis. " You must remember that returns do not stop at the actual charge for freezing, but are affected by the by-products, which in the case of * impoverished and lighter-weight stock show a proportionately smaller return. . . . The company commenced the financial year with a bank overdraft of £131,143. This, at the end of the year, stood at £109,308, a reduction of £21,835. During the year £14,000 was outlaid in capital expenditure, £2713 has been written off tho cost of floating debentures and amalgamation expenses (thereby completely wiping out tho latter item), and £10.404 has been expended in repairs, maintenance and renewals. Our open accounts have been reduced by the sum of £14,250, and £10,030 of this reduction has been utilised to increase our lecured accounts by that sum. There Has also been a decrease in expenses during the year of some £2200. " Last year depreciation was not deducted from the earnings of that period, but was carried forward to the profit and toss appropriation account. This year the procedure has been reversed, thus accounting for the reduced profit shown in this year's balance-sheet. I think, perhaps,"! might draw your attention to the large writings-off the cost price of our fixed assets, some £126,600, as an evidence of the stabilising and conservative policy adopted by your directors."

OTAGO FRUIT INDUSTRY. THE SEASON'S PROSPECTS. Notwithstanding the fact that 'the weather has been entirely against Otago fruitgrowers this season, there is every prospect that shippers may expect Rood returns. This is the opinion of a Central Otago orchardist, who discussed the position with a Daily Times reporter last week. The wet and cold spring, he said, had been a serious handicap to fruitgrowers generally, so much so that a number of them, discouraged by this and by the prevailing conditions in regard to freight charges and wages, were thinking seriously of pulling out their trees. A continued cold spell had militated against the proper development of growing fruit, and in many cases hail had so severely dented the young apples and pears that there was nothing for it but to pull oft' the marked fruit. One fruitgrower, the orchardist pointed out, had expected £IOOO from his crop of che;rries this year, i and now, as things have turned out, he does not expect to receive more than £250. The question of export, it was stated, was also causing the growers some perturbation. Wages and freight were becoming more and more of a problem, in addition to which, requisites, such as cases and spraying materials, had increased in price by more than 100 per cent. As a matter of fact,, it was stated, the actual prices received last season in many cases barely covered the cost of freight and commission, and the returns received from cool store fruit were hardly enough to pay for the storage charges. Regarding the Government's proposal to control the export of fruit, the speaker emphatically declared himself against it. All the fruitgrowers wanted, he said, was to be left undisturbed and to be allowed to place their fruit on any market they pleased. He, personally, had found his London agent perfectly satisfactory, but where he could now get a good price for his fruit, the advent of control meant that he would be placed on the same basis as the grower who shipped fruit inferior to his.

LONDON WOOL SALES. MAINTENANCE OF PRICES. Australian and N.Z. Cable Association. (Eeod. 7.35 p.m.) LONDON. Deo. 4. At the London wool sales to-day there was a good selection of Merinos and slipes and a small offering of gnsasy crossbreds. Competition was good and prices were on a parity with the highest; point of the series. MEAT PRICES IN ENGLAND. REPORT OF COMMISSION. A. and N.Z. LONDON, Dec. 3. Notwithstanding the fact that butchers stated in evidence before the Food Prices Commission in 19,' ft that 20 per cent, on cost was a fair gross profit, the report of the Food Council issued to-day says the council carefully watched the Smithfield retail price-lists printed for the guidance of housewives. It found that over a period of 26 weeks, in 1926, the prices of Scottish and Argentine beef were 50 per cent, above cost, and in one week 70 per cent. The council questions the worth of price-lists which do not observe any consistent theory of margins, but appear to be based on individual butchers' ideas of profits. " If the statements of witnesses were correct there should be substantial reductions," says the report. " For example, beef in October should be Id to 2d a lb. cheaper and English mutton and beef, 2|d to 3d cheaper." CHICAGO WHEAT MARKET. Australian and N.Z. Cable Association. (Reed. 5.5 p.m.) CHICAGO. Dec. 4. Wheat.—December, 1 dollar 39 5-8 cents per bushel; May, 1 dollar 41£ cents; July, 1 dollar 33f cents. LONDON WHEAT MARKET. Australian and N.Z. Cable Association. (Reed. 5.5 p.m.) LONDON, Dec. 3. Wheat cargoes are slow, but steadier on better American tone and "bullish" Argentina weather reports. Parcels are in moderate request at 3d to 9d advance. Parcels by the Oronsay are quoted at 575. Liverpool futures, December, lis 4 5-8 d per cental; March, 10s 7 7-8 d; May, 10s s|d,