CHRISTCHURCH MEAT COMPANY.

Otago Daily Times, Issue 13545, 19 March 1906, Page 2 (Supplement)

CHRISTCHURCH MEAT COMPANY.

CHRISTCHURCH, February 28.

The annual meeting of the Christchurch Meat Company was held to-day, tho chairman of director (Mr Malet) presiding.

Tho Chairman explained that he was away fiom tho colony on a health tour during the season covered by tho balance sheet, and when the amalgamation with the New Zealand Refrigerating' Company took place. He much regretted the heavy deficit of £29,493 shown in the accounts as tho result of tho working of the company for tho past year, but tho loss was entirely due lo the serious fall which iook place in tho values of both' mutton and lamb on the Home market towards the end of tho Bfla&on. livery effort was made to improve tlie tone of the market, and thus minimise losses, but the period of depression lasted eo long that little benefit resulted. During the year the reserve fund had been increased ]>v £12,000, through amalgamation with tlic N'cw Zealand' Refrigerating Company, bringing the total up to £36,000 as a set-off iigninst lwolc values of uropcrtios shown as assots. Sundry debtors showed an increase of about £10,169. The lands, buildings, and plant, etc., showed an increase of £36,073. The item freezing sales and manufacturing in tho profit and loss account, which represented tho gross income of the company, showed a decrease of £53,302, solely attributable io losses connected with meat, He moved the adoption of flio report and balance sheet, Mr Gilbert Anderson, managing director of the company, in seconding the motion for tho adoption of the report, said the year 1905 had been one* of the worst experienced since the inceotion of Ihe trado fov all exporters of frozen meat. That was brought, about, finst. from the general slownws of trade at Home, secondly, by the large quantities of cheap liecf which offered a larger margin of profit to the retailer, but mainly from the high price of stock in the colony. Tho position* was further aggravated by (ho farmer insisting, in a very large number of instances, on selling bis lambs by the pound, and holding hip stock back until he could obtain a. heavy average weight. The prices offered by London buyers both for sheep and lamlis right on and as late as the July shipment were such as to warrant big prices here if suitable weight and quality had been available. The disorganisation of the Canterbury lamb and mutton trade was brought, about by the introduction of coaise North Island ewes without the selection of a suitable ram. In 1905 1,630,343 carcases of mutton and 1,960.609 carcases of lamb, making a total of 3,590,952 carcases, were shipped from New Zealand to the United Kingdom, which meant a decrease in mutton since the previous year of 310,404 carcases, and an increase in lamb of 45,628 carcases, making a net decrease of 264,776. The report and balance sheet, were adopted subject lo an amendment by Professor Brown that £75,000 should bo transferred from the reserve fund against tho debit on profit and loss account. The meeting authorised the addition of another member to the Board of Directors, and a motion was passed asking the directors to renew llio articles of association and make any suggestions for their amendment which 'in ttieir judgment might appear desirable. Mr F. do C. Malet (tho chairman), in the coui'so of his address in moving the adoption of the report and balance sheet, said:— "I may mention that the various other products of. the company have met with ready sale at remunerative price, and in some depurtnienis tho result of the working for tho past year has been exceptionally atisfaclory. ' You will observe from the report that a large sum has ken expended in keeping all the company's works iip to tho high standard of efficiency at which they have been maintained for some years. Now that the operations of tho company have been extended to tho provincial district of Otago, in which we have two works, it is thought most.. desirable lo strengthen the company's position in that district by the appointment of a director resident in and conversant with the requirements and conditions of that part of the colony. As the articles of the company provide for five directors only, you will l>e asked to make provision for the appointment of a sixth director. The board of directors does not ask you lo increase the remuneration for its services, already fixed by the articles for the board as constituted when that sum was decided upon. The directors amongst themselves will make the necessary provision accordingly for tho sixth, director. Owing to illness—which 1 am sure we all regret,—the managing director, as many of you are aware, has been absent front business for about three months. He has recently tendered the resignation of his office as managing director, which lite board of directors lias accepted. Mr Anderson, however, remains a director of the company, and the board has mado arrangements to avail itself of his services. He leaves Ihe colony shortly and proceeds to Kngland to inquire into and report to the directors upon the existing conditions of the frozen meat industry in Great Britain. Mr William Murray, who was for many years secretary of this company, and who during recent years, up to the amalgamation, was manager of the New Zealand Refrigerating Company, was appointed acting-manager in consequence) of tho absence of the managing director. The land, buildings, and plant account shows an increase of £86,073. This is accounted for by tho figures now before you, including the book valuation of the two works in Otago, representing £63,307, and the year's expenditure on additions to the other works of tho company, amounting to £22,266. The consignments open at October 31, of which the actual value has been ascertained, amount to £158,355, as against £106,265 inst year; whilst the estimated value of (be unrealised consignments and stocks in works shows £101,331, as sgainsl £83,772. It may bo satisfactory to .shareholders lo know that, cable advices from London, received yesterday, show that only 1000 carcases of the consignments of last year are still unsold. Further, that, the valuations placed upon the unrealised shipments in the figures now under consideration are based upon the latest cable advices from our London office."

Mr Gilbert Anderson, in the course of his remarks in seconding the adoption of the report, said: The high r-'rice in the colony was brought-about through the Smithfield market price here, November and December. 1904, price*; being 6d to 6jd for lamb and 4Jd for mutton. There were large and extended orders sent from London at prices which, if they did not quite warrant the high prices asked hy the farmers, were such as to consf.il.ttlt) a iccord. The position was further aggravated by the fanner insisting in a very large number of instances on soiling his lambs by the pound, and holding his stock buck until he could obtain 1 heavy average weight. Having obtained this," lie informed his neighbour of his splendid return, and prices were hardened un all round. The splendid position in which this industry has placed the farmer made him sufficiently independent to hold his stock, although, at the same time, he was making it a less suitable article for the trade. The prices offered by the London buycre both for sheep and lambs right on and as Into.as July shipment, were stioh as to warrant big prices here if the suitable weights and quality had been available. Instead of netting lambs weighing from 301b to- 401b, the' drafts of lambs weighed from 341b to 501b, and in several instances lines of so-called lambs were killed going from 431b to as high as 601b. As regards sheep', there was a great absence of sheep under 5611). and an excess of sheep weighing from 64!b to 801b. As a consequence the buyers, to obtain stock to fill orders, had to take an excessive quantity of weights, which afterwards proved unsuitable. The orders from London are invariably for prime lambs under 361b and 361b to 421b, half to be of each grade. To fill the orders already taken in the usual way of business from 65 per cent, to 75 per cent, more stock had to lie taken delivery of by the buvcr. This large quantity of lambs, weighing from 3611) to 421b and 421b to 501b, had to bo sent forward hy the, various buyers. These unsuitable weights Here allowed to Accumulate in London. The rwsition was dangerous, and more so, as none of the shippers were able to convince their agents that the season and conditions were abnormal. On tho other hand, there seems to have been a general concensus of opinion amongst the agents in London that it was not advisable ' to force sales. Various reports were sent out that the agents hoped to improve matters by selling slowly. Several meetings were held -by (lie Frozen Meat Asfooiation to hold up the market. It is to be feared that the Frozen' Meat Association is of too heterogeneous a character to bo of any service to colonial shippers in such circumstancca. Something better must be devised, and some arrangement come to whereby the agents representing tho shippers, and not the buyers, can meet for the better regulation of the trade. One can only repeat what has been said so often, that if we arc to hold this trade it will only be by farmers growing what, is wanted—namely, Jambs under 401b and

sheep under 601b of primo quality. There is no doubt that the disorganisation of the Canterbury lamb and mutton trado was brought about by the introduction of coarso North Island owes without tho selection of a suitablo ram. Now that the flocks in Canterbury have been worked up, and tho number of stations breeding suitablo cwoa increased,, thero should bo 'a chance of getting back to the old Canterbury standard, which is so much appreciated. The reports from London all state that our lambs aro too heavy and too fat, and that the o;d standard of Canterbury mutton is seldom scon. Tho total number of sheep in tho colony by the last returns was 19,130,875, an increase of 850,069 over tho previous year. And as a. factor influencing tho future it may bo noted that of this increase 732,061 were females. Our flocks of sheep arc mado up of 5.671,644 males and 13,459,231 females. The number of ewes used for breeding was 9,979,184, and of this number 2,911,683 ,v,ero in the Canterbury district. There was a deoreaso in exports of 264,776. Wo arc safo in assuming that thero is this year already a very large inerea6o in our flocks of over one million head. Australia, is also increasing her Hocks and ship'monts of frozen meat, Argentine increased her shipments of mutton by over a quarter of a million, and sent large quantities of beef. This will bo followed up this yonr. It will, therefore, be seen that there will be considerable competition, and those countries with tho best trado organisation will bo best off. There is one circumstance: now that Australia is increasing her exports in iamb, it is advisable to make the lambing lafer where po«ible. It must bo borne in mind 'that tho London season for lambs is after Ea6ter to the end of July. That while there is some trado all the year round excessive shipments out of season moans lower prices. What tin's meant, last year will lie recognised when I remind you that the price of lamb was 6Jd in February, and fell to 4Jd in October. No year has shown such a persistent fall. The following are some figures relating to shipments and imports of frozen meat: — Shipments of Frozen Meat from Now Zealand to the United Kingdom. 1905.

Carcases, Decrease nmtlon ,110,401 Increase lamb .. ~ .. .. 45.623 Net decrease 2154,77G Average Pric-os ol Canterbury Mutton and Lamb During 1904 and 1905 ou the Smithfield Market. 1001. Mutton. Lamb.

SUMMAItY OV SHIPMENTS.' Mutton. The year's imports of mutton into tho Unitctt Kingdom show that there has been a net incrcaso of 400,183 carcases, made us as follows: - Prom— Caie.v,cs. Per Cent. New Zenland. decrease.. 033.400 11.76 Australia, increase.. .. 340.103 279,2.3 River Plate, increase .. 293,570 10.97 Increase 639,073 Loss New Zealand decrease 233,49(1 A net increase of million of 400,183 8.39 Lamb. The year's imports of lamb into tho United Kingdom show thai thore lia3 been a, not increase of 541,387 carcases, made up as follows:— From— Carcase?. Per Cent. New Zealand, increase .. 430 .02 Auslialia, increase .. 578,012 ' 175.94 Increase 576,418 River Plate, decrease .. 34.001 16.44 Making a net increase of lamb of 541,387 21.87 Add net increase of mutton 100,183 Total net increase of mutton and lamb .. 950,570 13.97 It wbs lesolvcd—"That tho directors ho asked to review the articles of association of the company and to make any suggestions for their' amendment which in their judgment apppar to bo. desirable." Tho two retiring directors (Messrs F. de C. Malct and Georgo Bowron) were reelected.

A resolution was passed authorising the appointment of an additional director. Mr William Grant moved—" That this meeting desires to place on record its appreciation of Mr Anderson's management duiing the period he lias been associated with the company, and regrets that his presence in London is considered necessary in the interests of shareholders; and tiio meeting further desires to express the hope that his absenoe from this office will be of short duration."—Carried.

Mutton. Lamb. Total. January .. 157,112 150.368 30S.O5O February .. 15C.18S 272,476 ■12S.6G4 March .. .. 250,770 .188,332 G39,lu8 April .. .. 150,103 277,927 '1.11,3.15 May .. .. 121,551 253,737 37S.2SS Juno .. .. 120.217 155.971 276,101 July .„ .. 205,142 279,108 485,550 August. .. 181.080 100.731 2S7.S23 September .. 115,453 32.521 147,932 October .. 84,970 19.232 104,202 November .. 30,419 2,061 33,482 December .. 40,713 21,534 62.247 1,030,313 1,900,609 3,590,952 .1901. 1,910,7-17 1,911.981 3.855,728

d. d. January .. .. 4 :i-8 5 February ., 4 9-1G 5 March .. ..4 !>-16 5 7-1G April .. .. 4 5-8 5 n-lG May 4 5-8 . 5 5-10 Juno 4 5-8 5 11-16 July 4 9-16 5 3-1 August .. .. 4 3-S 5 7-16 September .. i 5-10 5 11-16 October 4 1-4 5 7-16 November .. 4 !)-16 6 December .. I 3-1 6 3-lfi 1905. January ., .. 4 9-16 — February .... 4 1-4 6 1-4 Mnrcli .. .. 4 1-4 B 1-1G April .. .. 4 1-4 5 3-8 May 4 1-4 5 5-8 Juno 4 5-16 5 9-16 July 4 1-4 u 9-16 August .. .. 4 1-4 5 5-16 September ..4 4 7-8 October .. .. 3 3-4 4 5-16 November .. 3 11-16 4 1-16 December ..3 7-8 4 3-16