PRICES FOR PRODUCE.

New Zealand Herald, Volume LXIV, Issue 19807, 30 November 1927, Page 14

PRICES FOR PRODUCE.

OUTLOOK MORE FAVOURABLE WELLINGTON MEAT COMPANY. THE WAIRARA'PA MERGER. [BY TELEGRAPH. —OWN CORRESPONDENT. J WELLING TON. Tuesday " With the present prices for wool and other primary products wo are of opinion that prospects aro much moro favourable than they havo been," said the chairman, Mr. O. S. Watkins, at the annual meeting of shareholders of the Wellington Meat Export Co., Ltd., to-day. While striking a generally optimistic note, he uttercel a word of caution that New Zealand exporters should bo careful as to the quantity of secondary lambs sent to (lie Old Country owing to the large quantity of low-grado lambs going forward from Australia and some parts of the Argentine. The annual report and balance-sheet were adopted, and a formal resolution to pay a dividend of 8 per cent, on preference shares, carrying forward a balance of £6233, was carried. In drawing attention to the substantial improvement in the company's affairs, Mr. Watkins said the. merger with the Wairarapa Frozen Meat Co., Ltd., having been completed during the year, the paid-up capital now stood at £231,634. as against £144,304 a year ago. Tho effect of the introduction of fresh capital was seen in the reduction of tho company's indebtedness to its bankers, tho overdraft now being £30.760 Is 4d, as against £128,710 12s Id at September, 1926, and there were sufficient liquid stocks to cover this amount. While the profit on tho year's trading left a satisfactory balance, the market throughout tho season was a very fluctuating one and there was a long period when profits were a diminishing quantity. Not only was tho meat market unsatisfactory, but the tallow market went through a severe period of depression. Wool, however, stood well. This showed that the industry was of a speculative nature and at times hard to control. It was now generally recognised that concentration of the industry in factories of large capacity was the most successful way of carrying on tho business, as overhead charges were decreased. Referring to the prospects for next season, Mr. Watkins said it was always a difficult matter to forecast the trend of prices in that trade. Owing to tho good winter, stock was coming forward in excellent condition and tho value of topdressing was apparent in tho large number of lambs of good quality coming into the works. There had been an increase ot about 1,000,000 owes this year, which should provide at least an additional 500,000 lambs for export. "It is doubtful," continued the chairman, "whether prices in the Home markets will remain at their present high level, but, on the other hand, there seems to be evidence of a steadier tendency for the future, so that fluctuations in prices may not be as violent as they have been in the past." Messrs. W. D. Hunt, 11. Morrison, W. S. Bennett and O. S. Watkins were reelected directors.