FROZEN MEAT TRADE.

Otago Witness, Issue 2924, 30 March 1910, Page 21

FROZEN MEAT TRADE.

PROSPECTS FOR COMING SEASON. (From Ous Own CoRaESFONDEHT.) LONDON, February 18, The loss last year in the -Smithfield Market in connection with frozen meat was estimated at one million pounds sterling. The slump is attributed by Mr L. H. Furniss, secretary of'the Incorporated Society of Meat Importers," to the enormous »o- ---' crease in the supply of mutton and lambs, principally the latter, from New Zealand and Australia. ' The following are the comparative returns of shipments to this country in and 1909:- : . New Zealand. 1908. ,"-. * 1909. 1,747,000 sheep ... ... ... ... 1,839,000 sheep 2 ; 583,000 lambs ... ......... 3,144,000 lambs AtTSTRALIA '" '■'"'■ 816,000 sheep ... ... ... ... 1,496,350 sheep 1,363,700 lambs ... '.".: 1,250,650 lambs RIVFR ' ~ 3,228,900 sheep :'. ... ... ..." 2,598,000 sheep 573,000 lambs ... "..,...... 4,519,000 lambs •' These figures show' that tbero has been a great increase in the importation of both sheep and iambs the latter especially, while from Australia and the River Plate the sheep have decreased and the lambs have . somewhat increased," writes Mr Furniss, who continues: "As to prices, in the wholesale market, New Zealand mutton in August ;ast sank to the low figure *6f 211-16 d per ib wholesale, and lamb 2£d. Canterbury iamb was " as lew as 3£d and 2|d. There was a satisfactory . demand \ amongst the working classes for frozen irieats last year, but the addition of 47,21? fans to the available supply was tod'much to admit of wholesale prices being maintained at the high level of 1908, when importations were relatively short. Not until September last year was »ny relief experienced, and directly it was discovered that storage space was more obtainable values commenced to rise. The ©risis was in July l *,'but-now the tendency is upwards, as the old season's lambs are pracr tically disposed of- and .the new season's a-re coming into the country A°P° r ding to Messrs Weddel and Co., the recent general improvement in trade throughout the country has already resulted in a freer consumption of meat, and in their review of the position they ' hope that this improvement will develop as the year advances, because - there -vje' every prospect that the markets of the Ujnjted; Kingdom will have to absorb almost;;.the v whole output of the freezing works oL,the world.' In their - opinion, ' supplies.from all sources, except North America, are likely to increase, especially frozen .mutton and lamb from Australia and New Zealand and chilled beef from the River, Plate.' "The Colonial Consignment and Distributing Company, ajfso think that there will be a break in the general depression of trade." .■'.'.. MESSRS NELSON BROS." MEETING. Occupying the chair at the twenty-sixth ordinary general meeting of Messrs Nelson Bros., held at the Cannon Street Hotel on Tuesday, Sir E, -Montague Nelson expressed , great regret at *~tße loss sustained by the death of Mr W* Jfrrfaylor, who succeeded his father on tKe I 'board in 1893 (the latter was one of the'original directorate). \ ■ Lower Figures. Taking the balance sheet first, the* chairman noted that the capital at September 30 last remained as before, while the reserve fund stood at only £37.693, compared with £82,068 a year previously— -& decrease to which reference would be made tater. The profit and loas account showed a difference of £53.000; iThere was now a debit 1 balance of £32,49o;>asrainst a credit balance of £20,841 the previous year. The freehold land figured- -at: £53.000, as against £58,000. Although £5624 (the profit on the Bale of land) -had; been transferred to reserve account, ■ the item of freehold land had decreased by only £4370. A portion of • the estate the profit was realised was' sold in the year, but they had not been able to sav what the amount of profit would.be until the whole of the estate had been of. Their total holding now was 13.376 acres.. The item of bniWn°rs. machinery, and phnt fisrurpd at £9SrOOQ-cdd —an increase of £9987. The sum of £16.000 had been spent on new buildings and machinery at Tomoana. and Gisborne: £6741 had been written off for denreciation, and £6050 for repairs. Everything was now reported to be up-to-date at the factorv. Investments amounted to £341.000, or £SOOO less, some debentures which had been held by the company having been redeemed durinsr the year. Stacks on hand and in transit stood at £230.000 at the end of last September, or £37,000 less, ihan in the previous balance sheet. Debts due "•■ to .-the company,.- £39,434, sho.wed an' increase of £7202; they were now .■'.nearly-all-oaid, and the compan-v practipallv had.no. bad debts. Cash at bank, £6136, showed a decrease of £24,000 in comparison with the previous balance sheet. Cause of the Loss. There had been a loss of £70,000 on the sale of frozen meat. Everyone connected with the importation of frozen meat into England must have lost a considerable

■ amount of money during the past year. He had heard that about one million sterling must have been lost at Smithfield market' on frozen meat in the. 12 months. ..The reason was not far to seek—supplies had largely exceeded demand .. That large increase in supplies, together with the generally depressed state of trade, really accounted for the whole of heavy loss which was- generally experienced in 1909. Between .the months of April and August, 1909, the glut in the market was terrible; it was concentrated in those four months. In January, 1909, the- price of mutton was 3§d per lb, in the following August it was 2|d, and at times even less. But in October it had risen again to 4|d. In January the price of lamb was 6d per lb, in August it was 3d. while in October it was 4_d. Improvement in the Outlook. The slump in prices had been quite unexpected, and Sir E. M. Nelson thought the company might congratulate itself that it had been prepared. The reserve fund had beer, built up for the purpose of dealing with such a state of things as that which had existed, and the directors had taken £50,000 from the fund. The present price of both mutton and lamb was pretty well as good as it was in January last year, so that the tide had turned. Ever since the beginning of last October the company had been doing, very well, and there was everv probability that they would be able at the end of the current year to replace to the reserve fund a substantial amount iof the sum how taken from it. Although * the loss on the year's trading had been i £70,147 on fro/en meat, the actual Joss on Uhe total trading had been only £32.490. I The board had taken £50,000 from reserve j to cover that loss and to pay a dividend of ! 2 per oent., making, with the interim dis- ! tribution, 4 per cent -for the year The motion for the adoption of the report w_s'seconded by Mr-It. H Cobb, and Sed with unanimity after the chairman had replied to some questions. Mr i.-i. So? was chosen to fill the vacancy on thTboard occasioned by the death of his hrother Mr Harold Nelson was re-elected as director, and the retiring auditors were reappointed - ma nager and staff iu New Zealand, and to the chairman r In "directors, brought the proceedings to ' a close. ' '• .'