FREEZING INDUSTRY.

New Zealand Herald, Volume LXVIII, Issue 20988, 26 September 1931, Page 12

FREEZING INDUSTRY.

REVIEW OF PAST SEASON.

RECORD IN LAMB EXPORTS

AUCKLAND COMPANY'S YEAR. A review of the exports of meat and dairy produce during (he past season and the problems facing (lie freezing industry was given by the chairman of directors of the Auckland Farmers' Freezing Company, Limited, Mr. J. E. Makgill, at the 271 h annual meeting of (he company yesterday, in presenting the annual report and balance-sheet, which were summarired in the Hekau) on August 27. There was a fair attendance of shareholders. The chairman slated that the past season had been one of anxiety to the directors, owing to the serious fall in prices for by-products of the industry, which had provided an important part of the company's revenue. Returns from such by-products had fallen to 60 great an extent that in some cases it did not pay to undertake-the processes required. At the beginning of the season, the directors, realising the serious position which faced stock farmers, decided not to raise the rates for freezing stock, and this resulted in an appreciable increase in the prices for fat stock to the producer. Whether it would be possible to maintain the present low freezing rates was now giving grounds for serious consideration. Finances of the Company. Reviewing the finances of the company, Mr. Makgill said that there had been an increase in the paid-up capital during the year of £13,090, which was almost entirely due to increased dairy company holdings. The amount owing to the company's bankers had also increased by £59,117, which was entirely in connection with the new building and plant at King's Wharf. The item sundry creditors showod a small increase, while on the asset side, land, buildings and plant showed an increase of £82,159, The profit shown by working accounts after providing for depreciation was greater this year by £7675, but general expenses also showed a rise of £8964, leaving the actual profit for the year less than the previous year by £1290. The increase in general expenses was largely accounted for by increased interest payable and provision for probable increase in income taxation. The amount brought forward from the previous year, £5199. and the year's profit, £16,998, made a total of £22,198 available, and out of this it w«s intended to distribute £13,235 in a dividend at 6 per cent., to carry £2OOO to a special fund for works replacement, and to carry the remainder forward.

Killings of Cattle. During the past year the number of cattle treated at the company's works showed an increase of over 27 per cent, compared with tho previous season, but was far below the record numbers of some years ago. Very little quarter beef was handled, the greater amount being of boner class. Values for both types had fallen to low levels on the English market and this in conjunction with the low prices for tallow and hides, had proved a serious matter for producers. Killings of veal were a record, although the total was not really large. There had been a large increase in bobby calves, equal to 16.5 per cent, over the previous season. .As values in (his class were also depreciated, it was uncertain how long the industry could be maintained unless

costs were reduced. The number of lambs dealt with at all the works showed a large increase, equal to 48 per cent., compared with the previous season, when a record output was attained. The quality of Auckland lambs 1 had been steadily improving and the best quality was fully equal to any other brand received on the London market. It was impossible to* foresee tire prospects for the coming season, as much depended on the conditions ruling on the market. The total number of sheep treated at the various works showed ;in increase of over 178 per cent., but did not nearly reach tho record output of 1920. Prices for mutton had been low for a considerable part of the season, but later returns were quite satisfactory. Sheep Farmers' Position. "It is to be sincerely hoped that a recovery may soon be made by tho products from sheep farming, as at present it is impossible to earn proper working expenses, including a reasonable living wage for the labour required, and proper maintenance of the farms, without any interest on the capital involved," continued the chairman. "It is difficult to see how this important industry can be indefinitely carried on under these circumstances and the effect on the whole economic situation of New Zealand must be most serious. I "Jt is of the utmost importance that ' our volume of production should be main- | tained, in face of the reduced value of our products. Every means possible must be taken to reduce costs of production and handling to achieve the maintenance, and, if possible, to increase, ' tho output of the sheep industry." The output of pigs showed a decrease of over 15j per cent., compared with the previous season, although it seemed possible for dairy farmers to increase their annual income very materially by ! giving more attention to pig production. Pig products imported into Great Britain from foreign sources were worth over ' £55.000,000 a year and the Dominion ! should win a share of this trade. Dairy Produce Output. | The butter output for the season sur- ; passed the previous year's record by 1.2 : per cent, and if the season had been i climatically moue favourable the increase I would have been much greater. The exJ port of cheese showed an increase of over | 20 per cent., while the season's output of cheese calculated on a bu'.ter-fat basis was greater by 3.5 per cent, than in tho previous year. This increase, however, was not equal to the heavy reduction in price levels, and the reduced income of i dairy farmers had mado it very difficult to maintain pastures bv top-dressing, in many cases the outlay being now much restricted. "The reduction in the income of the Dominion as gauged by our export values has exceeded anything that was anticipated a year ago and as yet one cannot i,ee any real evidence on which to baso a belief that we may expect much improvement in the prices of our products in tho near future," concluded the chairman. "Our main problems are to readjust our expenditure to our income, both privately and publicly, to review the me.hods and costs of our production at all stages and to strive to maintain or increaso its volume so as to keep (he national income as high as possible." After the report and balance-sheet had been adopted it was decided to set aside the sum of £2OOO each year to be invested in recognised trust investments for a fund to provide replacement of the assets represented by the King's Wharf works, which stood on a leasehold site, the interest on tho investments to become part of the fund. The retiring directors, Messrs. J. G. Ritchie and E. M. Edkins, were reelected unopposed, while votes of thanks to tho directors, the general manager, Air. T. Simpson, and the staff were passed.