PRODUCE EXPORT YEAR

New Zealand Herald, Volume LXIX, Issue 21296, 24 September 1932, Page 14

PRODUCE EXPORT YEAR

AUCKLAND'S LARGE OUTPUT MARKED INCREASES SHOWN jj • f FARMERS' FREEZING COMPANY s a s '1 he position of the primary industries j. in New Zealand was discussed, by the chairman of directors of the Auckland Farmers' Freezing Company, Ltd., Mr. ! c J. E. Makgill, in his address at the 28th ® annual meeting of the company yesterday. 1 "For somo time I have felt that the . 'bottom of the depression has been J 1 reached as far as farming is concerned," ( said Mr. Makgill. "Although there is still * a large proportion of unemployment 1 throughout the world, there are signs of j ] the beginning of a recovery. We must not i 1 look for sensational movements upward, : ' and the recovery will take time to achieve There will probably be many fluctuations ; before stability is achieved, but I believe I ' that farmers arc now past the- worst, and they can look forward with some confidence to brighter conditions within a reasonable time." Referring to exchange conditions, Mr. Makgill said he considered that farmers should bo careful in dealing with the subject. Even with a measure of improve- [ ment in prices for primary products for export, it was improbable that they would return to the levels ruling a few years previously. The essential object must be to achieve a due balance in the cost of production, handling and transport of products with the new prico levels for the commodities. Fallacy of High Exchange Unduly high rates of exchange must tend to raise commodity prices in New Zealand and thus increase the cost of production, handling and transport, and tend to retard the readjustment of costs to the price levels of products. It was true that New Zealand's lower rate of exchange, as compared with other competitive producing countries, placed the Dominion at a disadvantage, especially in an over-stocked market, but New Zealand would achieve more quickly a sounder and more advantageous position through avoiding unduly high exchange rates. "It is pleasing to record that, in spite of the bad times, the pastoral output of the Dominion has not oidy been maintained, but increased in most directions," said Mr. ■Makgill. "Seemingly, this is due not only to the better handling of the land under production, but also to the development of a certain amount of virgin country." Beef and Pork Export Mr. Makgill said that during the past season, 20,983 cattle had been handled at the works, an increase of 53.7 per cent over the past season. A very large proportion was "boner" class, the prices for prime beef being very low and quite unpayable to growers. The total export cattle killed in Auckland was about 41,863, an incrouse of 81.5 per cent over the previous year. The number of bobby calves killed at the company's works increased ► by 4.1 per ront. For the past season in the Auckland district the killings were 254,499, an increase of 11.5 per cent. Prico levels were reduced considerably and it appeared certain that there would be a much reduced killing in the current season. The number of pigs killed by the company declined by 33 per cent, and for the province by 18,755 head, a reduction of 20.7 per cent. There had been a very heavy supply of European cured pig meat concentrated on the British market during the past season and this had had a serious effect on price levels, not only of pig meats, but of all other meats. Heavy Lamb Killings In the lamb section, 85,998 head more, or just over 30 per cent, were killed by the company and the total export lamb killings for Auckland was just over 750,000, an increase of 161,178, or 27 per cent. In grown sheep the company had an increased killing of 44.6 per cent, while the total exp'rt killings increased by 115,144 or 125.5 per cent. Interim figures for the year ended April 30, 1932, showed that there was a reduction of 1,186,297 sheep, or 3.9 per cent, in the Dominion and an Auckland reduction of 26b,671, or over 8 per cent. This was not surprising in view of the unpayable state of the market for sheep products. The output of Gutter during the past year had again been a record, although there was a reduction in cheese exports. On a butter-fat basis the year's output was 8.8 per cent higher than the previous season. It was unfortunate that price levels had been low and it must bo recognised that unless there was improvement industrially in Great Britain, higher levels ' could not be expected. It was pleasing that the top-dressing area increased in 1931, and it appeared that the quantity of fertiliser used this year would again show an increase. Indications pointed to a large increase in production in the current season. There had been a considerable increase in the quantity of fruit handled, export fruit showing an increase of 53.9 per cent and local storage fruit an increase of 13 per cent. Local prices had been very disappointing during the season and export prices also had been low and patchy. A Satisfactory Year The past season had been a satisfactory one for the company, Mr. Makgill said. Since the June 30 accounts had been analysed, the company had been able to announce a further reduction in dairy produce storage rates. While the meat rates for the coming season had not been reviewed, it was hoped to be able to refrain from increasing them. The King's "Wharf works had handled a great volume of dairy produce, fruit and sundries. Owing to what seemed a fixed policy in tho dairy industry to hold produce and spread its arrival more evenly in Great Britain and tho increasing volume of produce, it was clear that further storage provision must be made at the wharf. It was hoped that the new building would bo available early next year, in time for the peak storage demands. Reviewing the finances of the company, ; Mr. Makgill said there was an increase I of £l6ll in the subscribed capital and oi £11,634 in the paid-up capital, this beinp due to the carrying out of tho arranger ment with the dairy companies. There 3 was still £24,703 of subscribed capital tc bo paid up under tho arrangement. A sum of £17.538 was available for allocaj tion for the year and payment of a divi , dend of 6 per cent, absorbing £13,950 t was recommended, the balance being car ried forward, s Tho report and balance-sheet, a sum , marv of which appeared in the llerali i on August 23, were adopted. Messrs. A Oit and 11. E. Worsp were re-electec directors. Appreciation of the work of thi staff was expressed by Mr. Makgill, an< a vote of thanks was passed. ' At a subsequent meeting of directors Mr. Worsp was elected chairman for th c ' ensuing year, on the motion of Mr. Mak ei". ==