RECORD TURNOVER

Otago Daily Times, Issue 27513, 6 October 1950, Page 9

RECORD TURNOVER

Canterbury Farmers’ Co-operative Association CHAIRMAN’S ADDRESS The affairs of the Canterbury Farmers’ Co-operative Association, Ltd., Timaru. were reviewed by the chairman (Mr A. Austin) at the annual general meeting of shareholders last Friday. In moving the adoption of the report and balance sheet for the year ended July 31, the chairman said: “Before proceeding to give some details of trading, I take this earlier opportunity of expressing on behalf of the board of. directors, its sincere appreciation of the loyalty and fine support of shareholders and customers to the association in the last financial year. As you will. have seen from the balance sheet distributed a week ago, the year closed with a net profit of £62,101, an increase over last year of £11,884. This has been brought about by very substantial increases in trading due to easement in controls of many lines of merchandise, to the excellent realisations in wool, lambs, and stock generally, and the excellent returns of grain, produce, and small seeds business. Trading over-all resulted in a gross profit earned of £231,326, an increase of £24,680. I would state at this point that the earnings at all centres of the association show remarkably even increases, and this fact is of tremendous encouragement to us in our service at all of our established centres in South Canterbury. “Merchandise stocks at £326,415 on the premises of the association at July 31 show an increase of £42,910. These have been carefully checked by stock-checkers, suitably discounted where necessary, and favourably reported upon. “ The year’s expenses amount to £169,225, an increase of £12,796, the chief increase being in salaries and wages. £9941, due to awards and pronouncements of the Court of Arbitration. Repairs and maintenance of buildings and plant at a cost of £11,380, show an increase of £1244. Depreciation of buildings, plant, and motors has been provided in the sum of £10,660, and properties and plant are all in first-class order. Turnover for the association reached £2,617,389, an increase of £502,289. This is a record turnover for the association, mainly brought about by outstanding values in stock and wool amounting to £396,696, and increased sales of merchandise, £88,299. " Turning to the balance sheet, we finished the year, after providing income tax £36,159, and dividends, £B9BI, with a surplus of £16,961, which gives an accumulated reserve of £101.176. In current assets, we have a bank credit of £46,404, together with £64,950 invested in Government stock, a total of £111,354, and I beg to submit to this meeting that the association has attained a very strong and sound position. “ Our buildings in South Canterbury, freehold at £119.282, and leasehold at £5289, are at very conservative figures and would be irreplaceable at anything like the total shown, totalling £124.571. Furniture, fittings and plant, taken into assets at £49,985, are more than last vear by £1555. and all are carefully maintained. Labour-saving devices make for speeding uo the work with the same number of staff we had 10 years ago, and greatly increased business. “Advances, auction, goods and bills receivable accounts standing at £187,522, higher than last year by £3618, have been closely scrutinised by the auditors and are a' valuable asset. Wool

“ The importance of wool in New Zealand’s economic structure reached Its greatest level in last season’s series of auctions, which proved to be recordbreaking ones. For the first sale held on January 13, the clip did not open up as well as at the corresponding sale last season, owing to the dry autumn and spring, a large portion of the offering being affected by dust, and a higher percentage than usual of tender and heavyconditioned wools. The second Timaru sale, held in April, was even higher than the first one. the wool displayed being better than the usual second sale standard, owing no doubt to most of its having been shorn earlier than usual. " The figures as compared with the previous season, were:—

Average Av. price price Bales Net amt. per bale, per lb. sold. £ £ s. d. d. 1948- 56,057 2,411.889 43 0 6 31.684 1949- 55,552 3.375,909 60 15 5 44.328 ” It is interesting to note that the Timaru average for the 1949-1950 selling season of £6O 4s 4d per bale was the highest in New Zealand. ” The coming season should be another record one, as the evidence to hand would Indicate that higher prices than ever are in prospect. Our flocks have come through a good winter and at the time of writing the clip would appear to be of a very high standard. “We would like to take this opportunity of thanking our many clients for their loyal support last wool season, and we can again assure them that for the coming year we plan to give them the same high standard of service. During the coming season we invite our clients and others interested to visit our out" standing wool store, and view at first hand our endeavours to see that their wool is placed on the market to be sold to the best possible advantage. Frozen Meat

“ Last season was a good one for graziers, there being ample feed at all stages of the season The average increase in weights of fat lambs would be in the vicinity of lilb heavier than the previous season, which was also a very satisfactory one. Ewes and wethers also did very well, and they, too, must have shown an increase in weieht for the season. After a good winter the prospects for the coming season are again bright, both as to price and feeding conditions, th" sheep having wintered well and the rains experienced lately assuring farmers of a good growth as soon as warmer weather conditions are experienced.

Grain and Produce “ The estimated area sown in wheat was 130.000 acres, a drop of 20,000 acres on the previous year. The average yield was 37 bushels, and prices were 8s 9d for Tuscan varieties. 8s lid for Hunters, 9s Id for Velvet, 9s 3d for Marquis, 9s 9d for Hilgendorf, with an increment of Id per bushel in April, May. June, July, and Jd in August-September. All nrices f.o.b. nearest port, sacks extra, with a deduction of Jd per bushel, which is set apart for payment into th* Wheatgrowers’ Compensation Fund. Harvest weather -was patchy and there was a certain amount of congestion, due to shortage of store space and railway trucks. “ The estimated area sown in oats was 170,000 acres. With a heavy carry-over from the previous season, oats did not find a readv market, but most merchants purchased their clients' offerin c s at 5s on trucks sacks extra, for good heavy Gartons—lower qualities bringing from 4s 9d to 4s 6d. Good-quality lines of Duns found a market at 6s to 6s 6d. depending on duality. “ The estimated area of barley sown was 70,000 acres, with an average yrld of 34 bushels. A price order fixed the price at 6s 7d on trucks for malting and 6s 4d for Cape, sacks extra. The bulk of the crop was grown on contract for breweries and maltsters. " Tile demand for peas at harvest time was very small, but increased later in the season, and up to 11s 6d was paid, sacks extra, on trucks. “ The area planted in potatoes was approximately 18,000 acres, and with an excellent season, yields were well above tbe average. A Government price order fixed prices at £lO f.o.b. for Sutton’s Supreme. King Edwards, and Dakotas—other varieties £9 10s, with sacks extra, at £1 8s 6d per ton. An increment of 10s per ton was paid on Julv 8. At this time, July 31. a definite surplus is indicated. “We have had a splendid winter, farm work is well forward, lambing reports are generally good, all stock is In excellent condition, with ample feeding, and. always provided climatic conditions remain kind, there are grounds for anticipating an abundant 1950-51 season, with good prices in prospect. What prices will be it is extremely difficult to forecast, especiallv wool, but I think we can reasonably say returns from farms should show excellent results ” I had hoped that this year we could have looked forward to settled world conditions, hut, if anything. I think the general position is worse than ever. The world is divided into two camps, and staggering millions are being spent on defensive measures with two aims in view —the prevention of world war by strength or the means of successful defence if the worst hannens.

“ I conclude with the board's thanks ,to the pen era 1 manager, branch managers, all executives and staff for their excellent and successful work during this last financial year. T would advise that dividends on paid-up eanital at 6 per cent, will be payable with the close of this meeting at the association’s offices In Beswiek street." (Extended report bv arrangement)