FREEZING INDUSTRY

New Zealand Herald, Volume LXXVI, Issue 23428, 18 August 1939, Page 5

FREEZING INDUSTRY

AUCKLAND FARMERS' CO. YEAR'S PROFIT LOWER FALL IN DAIRY OUTPUT A further recession in earnings, of the Auckland Farmers' Freezing Company, Limited, is shown in the accounts for the year ended June 30. Net profit for tho period was £21,136, against £23,285 in tho previous year, and £30,760 in 1937. The number of stock handled was satisfactory, but, owing tu the dry season and farm labour difficulties, there was a substantial reduction in the quantity of dairy produce which passed through tho works, a fact which, no doubt, was responsible for the declino in earnings. Tho directors recommend the usual dividend of G per cent, absorbing £15,317, and also proposio to place £5200 to general reserve, against £IO,OOO a year ago, which will leave £3976 to be carried forward, against £3357 brought into the accounts. Tho proposed appropriation to reserve will increase this fund to £150,000.' Eighty-year Lease Arranged Tlio directors state that in tho report adopted in 1931 it was stated that £2OOO would bo invested annually to provido for the eventual replacement of the King's Wharf works. This procedure was followed in succeeding years, but is not being continued, a new lease of the land having been completed, which secures the tenancy to the company until tho year 2019. The investments represented by the fund have been sold and the general reserve increased by a similar amount. Results for tho past three years compare as follows: — - 1037 1938 1039 Brought forward £4,571 £5,300 £3,357 Net profit .. 30,760 23,285 21,138 £35,331 £28,585 £24,493 To reserve .. "15,000 1.0,000 5,200 Dividend, 6 p.c. .. 15,031 1.5,228 15,317

Carried forward. £5,300 £3,357 . £3,97G

Balance-sheet Changes Movements in the balance-sheet over tho year arc as follows: LIABILITIES Variation £ £ Paid capital .. .. 255,650 +GGS General reserve .. 144,500 +27.500 Works replacement .. Unclaimed dividends . 344 -22 Bank loan .. .. 136,413 +99,784 Creditors ; . .. 98,579 —8,665 Profit and loss .. 24,494 -4,091 ASSETS Land, buildings, etc. . 572,747 +108,324 Share investments .. 005 Same Replacement invest. ~ Stocks and stores .. 45,770 +6,957 Sundry debtors .. 40,504 +lO Cash .. .. 264 +l7B The balance total at £660,280 shows an increase of £97,696. Changes in the balance-sheet, in addition to normal trading movements, reflect tho addition to the company's fixed assets through tho erection of tho new cold, storo and the adjustment to reserves commented upon in tho report. Details of the company's killings of stock for tho sqason wero published in the Herald on July 13. The report comments that, while killings of cattle and sheep wore appreciably greater than for the previous year, marked reductions w prG experienced in lambs and pigs. Allowing for the effect on production of the eczema outbreak of tho previous autumn and tho dry summer of the past "year, tho aggregate killings was satisfactory. Less Butter and Cheese Handled

Compared with the previous year's figures, butter receipts were less by 573,234 boxes, cheese by 11,960 crates, and fruit by 48,761 cases. On a butterfat basis the drop in the production of dairy produce is 13.3 per cent. The principal causes of this reduction were a very dry season and farm labour difficulties. Following arc the quantities of butter and cheese received by the company during the last five years:— Tear, to Butter Cheese June 30 (boxds) (crates) 1035 .. .. 3,700,0-19 240.818 193G . . . . 4,050,7*13 209,736 1037 .. .. 4,326,066 210,430 1038 .. .. 4,118,010 228,710 1030 .. . 3,514,770 216,759 ♦Record. The total quantity of fruit handled was 207,520 cases, compared with 256,284 in the previous year. The new cold store on the eastern waterfront is nearing completion, and it is anticipated that it will bo put into use" for the freezing of butter in November. The report refers'* to the loss the company suffered through the death of Mr. J. E. Makgill, who had been a member of the board since 1905 and chairman from 1021 to 1932. Mr. F. K. Thomas, of Morrinsville, was appointed to the vacancy. The retiring directors, Messrs. .T, W. McAulay arid F. K. Thomas, are available for re-election. FARMERS' COMPANY NORTH AUCKLAND FIRM LOWER PREFERENCE DIVIDEND A profit of £4104 is shown in the accounts of the North_ Auckland Farmers' Co-operative, Limited, for the year ended Juno 30. This compares with £4.019 in tho previous year and £7Oll in 1937. The result was struck after writing off depreciation, but provision hns yot to bo made for income and social security taxes. The amoimt brought into the _ accounts is £OSO, making £4754 available. Out of this the directors propose to pay taxation and a dividend of 4i per cent on preference shares. The dividend requires £3116, against £3066 in tho previous year, when 5 per cent was distributed. The report states that tho dry sum-, mer and poor markets 'for livestock caused a substantial shrinkage in commission earnings, but for which results should havo been satisfactory.

TCcgrot is expressed at tho loss through death during tho year of Mr. J. .T, Fraser, who had boon a. director since 1909. Tho retiring directors, Messrs. D. «T. Finlayson and J, W. McAulay, aro available for re-election. Tho balancing total is £14,410 lower nt £194.232 Paid capitnl is unchanged nt, £97.198 Tho liability to tho bank is down £11,894 to £04.79.1, and creditors at £19,072 are £2391 lower. ,'ln assets, debtors have fallen to £112,080, ft reduction of and tlioro is an increase of £3759 in stocks to £34,467. Properties, etc., aro £38,952, compared with £38,210 a year ago. The capital account shows the changes made by tho cancellation of unissued shares during tho year. Paid capital comprises 59.707 ordinary shares nt 8s ench and 10,000 A preference and 63,315 B preference sbnres of £1 each. Thero has been no ordinary dividend for some years. LONDON MINING MARKET LONDON, .Aug. 16 New Guinea Gold shares sold at Is 7d on tho mining market to-day* «