SOUTHLAND LAMB.

Otago Daily Times, Issue 19406, 16 February 1925, Page 8

SOUTHLAND LAMB.

THE DRIFT NORTHSAIID. (From Oun Own Correspondent.) INVERCARGILL, February 15. The much-debated question of Southland lamb being sent, north and killed us “prime Canterbury’’ cropped up at the annual meeting of shareholders in the. Southland Frozen Meat, and Produce Export Company on Saturday, when some criticism of the company’s policy in this matter Was offered, notably by the Hon. A. F. Hawke. Referring (o the balance sheet, the chairman of directors (Mr John Gilkison) said (hat there had been a decrease in the net earnings of the company of something like £IO,OOO, as compared with the previous year; but this could be accounted for by two reasons —namely the quantity of stock handled in carrying out the directors’ policy and also in writing down the Bluff works. In regard to the latter, it bad been decided to close them down, avid when they were no longer in use it would mean that this item would disappear from the balance shoot. Consequently they wore increasing the storage accommodation at Makarewa, so that the demands of the future could be fully provided for. It was well known that there had been of recent years a good deal of competition amongst the South Island concerns, but on the whole the company had had a fair share of the business offering. Unfortunately it was true that a number of store lambs wore still being sent to Canterbury, but he believed that the dry conditions experienced locally had accentuated the position somewhat this season. The company was in a sound position, having something like £IOO,OOO invested outside, which was earning steady interest. Continuing, Mr Gilkison said there had been a good deal of discussion lately as to the rival merits of Canterbury and Southland lamb, and ho would just like to recall one point—that during the period of the meat commandeer extending over six years the average weights of lamb for Canterbury, Otago, and Southland were respectively 351 b, 361 b, and 371 b per carcase, which went to show that the local average weight was 21b heavier than the Canterbury weight. It was true that the heavier weight carcases paid the company bettor than lighter ones ; and ho believed that -if they kept up the quality it would improve the price to the grower, and in the long run would benefit the company. The directors wore anxious do their utmost to assist the producers in improving the quality of Southland lamb, and in that connection they were co-operat-ing with the Meat Board in arranging for a display of local carcases on the London market. , , ... The Hon. A. F. Hnwke said that while not wishing to criticise harshly the policy pursued by the directors, he said he was inclined to the opinion that it might have been better to have fared a larger loss and met the competition from the companies further north. It had always been said that it was liest to run on safe lines. No doubt ho would do the same thing himself, but probably it would have been worth while to have shown a bit more pluck and so let the other companies see that the Southland works were not going to allow them to have things all their own way. Ho offered his congratulations to those responsible for bringing the company through the year so well, and asked shareholders to stand by the directors for the welfare of the concern. rT Mr J. D. Trotter supported Mr Hawke b remarks. To his mind thoro was something wrong when so many lambs were being sent to tho northern works, but ho was at a loss to find tho real reason for such a state of affairs. . Tho Chariman, in reply, said that the real position was that if the cpmpany commenced to fight it would bo in opposition to its best customers, and that would probably result in it having to buy on its own account to keep the works going a. more or loss hnazrdous business, il had to he admitted. The question of the company buying on its own account had been considered by the directors during tho past year, but after all tho factors had been taken into consideration it line! been decided to adhere to the present policy, and in tho long run ho thought it would bo found tho best. Tho report and balance sheet were adopted without further discussion.