YEAR OF ANXIETY

New Zealand Times, Volume LII, Issue 12323, 18 December 1925, Page 4

YEAR OF ANXIETY

MEAT FREEZING COMPANIES FALL OF PRICES NOT REMARKABLE GEAR COMPANY’S REPORT Congratulation* on the result of ttie year’s operations were teiwlered to the shareholders in the Gear Meat Company, by Sir Harold Beauchamp, chairman of directors, at the annual meeting. “The he said, “indicate the changed position of the accounts brought about by the distribution of New Zeeland Government inscribed stock which was authorised at the extraordinary general meetings convened for tne purpose in December and January last. The reserve accounts on the one side and investments on the other were reduced by £460,000, and the income by the amount of interest thereon. Notwithstanding these alterations the' financial condition of the company, as revealed, by the statement of assets and liabilities, is exceedingly strong, and as yon will observe the reserve fund has been recreated by a substantial addition from this year’s profits. , •'Last season, although probably the best on. record from the producers point of view, inasmuch as prices were very high and climatic conditions excellent, was nevertheless one. of great anxiety to freezing companies’ executives. At the last annual meeting it WSs stated that values of most of Our products were then dangerously High, and it was feared that consumption might he curtailed to an extent which would bring about a reaction. Roughly speaking this is what happened. Competition early in the period under review was very keen by reason of shipments from Australia being abort and reports of a drought front Argentina. Unfortunately owing to the Very hot summer in the Northern Hemisphere consumption of meat fell away, fruit, JWh and light foods Kiting requirements.

EFFECT dF THE STRIKE "Conditions began to improve early in September and everything looked favourable when the Seamen’s strike intervened. Shipments from Australia and New Zealand were held up, although British ships loading in ports outside the Empire were not interfered with, and South America was thus able to benefit Meat also'arrived from the Continent of Europe (even Latvia sod Ebthonia contributing) and from Manchuria, whence on several occasions in recent years quite considerable Quantities have been gent. The splendid autumn at Home made availSblo a number of bill lambs front Sootmd, and the outbreak of foot and mouth disease led English farmers to reduce their risks by marketing everything possible in casei the scourge Should spread. At the close of the strike there were large) accumulations of refrigerated produce in Australia, and New Zealand, which had to be forwarded almost simultaneously m order to clear the way for the new season’s output, and ■to allow the Steamers which had been delayed to return to the Dominion for the presa of shipments during the heavy killing months Of January, February and March. ■ .. ,

THE GLUT IN ENGLAND “It is not therefore to be wondered that a glut haa occurred,' and .that prices have fallen. The demand is at present from hand to mouth, as purchasers have no reason to fear a shorj> age and the entry of new season a mutton and lamb will naturally divert attention from the older stocks. One of the most pronounced changes in the meat market is the great disparity now apparent in the values of lamb* under 36-pounds, as compared with those over that ' weight. This ranges from ltd to 2Jd per Tb, which indicates the {.reference, for light weights. It is to be hoped that farmers will see the necessity of catering for these requirements, and, by reducing the number of heavy, weights, bring about the normal margin. This vear it is probable that climatic conditions will take a hand in this direction It is estimated bhat the quantity of lamb alone which will be in store in England at the end of this month will amount to over a . million carcase*. These at this period of small demand may be difficult to place. However, lower pnceß should stimulate consumption and reduce shipments, thereby helping to- restore the balance, but the values ruling last season cannot, it is feared, be expected.

WOOLS FALL “Wool, as you are aware, fell enormously from the sensational figures or this time last year, and pelte are |Usa bringing lower prices. In both these instances it is said that the finished products Are relatively below the raw material*. High grade tallows are in Jess demand, as new methods of rehpittg lower qualities have been discovered?' On the other hand, the return to tho gold standard has considerably benefited exporters by reason of tho lower excliango rates. *'As Great, Britain is our principal market it is well to follow economic conditions tiiero. The taxes are high, with apparently little prospect of immediate reductions. The trade halanco is at present adverse, even after allowing for Invisible exports ,bnt with the extension of the ecopo.of the Safeguarding of Industrie* Act to an increased number of trades, and the ratification of tho Locarno Pact, them should bo steady improvement. The manufacturers and others who, despite heavvi losses, have carried an »n order to keep the workers employed and to be ready for better times are entitled to our sympathy and active support for their courage and determination in face of great difficulties and anxieties. In this connection it is well to remember that, apart from other considerations, in buying British goods we ore indirectly benefiting ourselves. Taking a broad outlook there is no doubt trade is improving very slowly, but nevertheless, it ip hoped, surely. Financial troubles, are hampering business on tho Continent, but the political situation is generally battel

CONFIDENCE FOR FUTURE “Tbo hydro-electrio cut-over . at Petone took plp.ee after the busiest rtiontlis of the vear had passed, hut, nidging from this short experience a considerable economv may bo exnec+wl “Withi a highly efficient orgnbisntion based on long experience.. with the' properties and plant well written down, thoroughly maintained up-to-date and caoaWe of dealing with anything ronuired of them, your directors look to tlje future with confidence and hone to be, able t« continue to produce satisfactory results. “In conclusion. I wish to e-tend to the general manager, head office. p„H London stiffs. l ivers, heads of do. partment* art: ’ employees generally

the tlian'.fg of the hoard for t.he good and laitliful -pork wH-v thm !u\e individually and colloid: .. rcilormod." The report and the belanec-sheet were adopted, and the muring diive-

i E. Collins, an! Mr W. H. Millward) ' w ere re-e!e: led. ! Sir hr,':uis 15ell oongiStriated the s'limSjoltlcrs, and exprct'-'-i opprei-ia- | viou of the work the general manager,

Sir \Y. H. Tripe, had done during tha year.