FROZEN MEAT CO.

Southland Times, Issue 19173, 18 February 1924, Page 7

FROZEN MEAT CO.

A PROFITABLE YEAR'S OPERATIONS. ANNUAL MEETING OF SHAREHOLDERS. The annual meeting of the Southland Froren Meat and Produce Export Company, held itrthe Southland League Rooms on Saturday morning, was attended by between 20 and 30 shareholders. The Chairman of Directors, Mr R. Dunlop, presided. DIRECTOR S REPORT. The Director s report stated that the balance available for appropriation shown by the profit and loss account, after providing for the interim dividend of £5676 19/6 already paid, amounted to £31,822 2/4, which the directors recommended should he disposed of by payment of a final dividend of 5 per cent (making 10 per cent, for the year l . This would leave a balance of £26,145 2/10 to carry forward. The directors regretted to report that Messrs C. Cowan and P. L. Gilkison had resigned owing to ill-health. The loss of these two gentleman was keenly felt by the directors, who deeply realised their services on the Board and their constant efforts in the advancement of the company’s interests. As Mr Cowan retired earlier in the year the directors appointed Mr S. S. Holms to fill the vacancy. CHAIRMAN S ADDRESS. “It is my pleasant duty again to preside at the annual meeting of the Company,” said Mr Dunlop in moving the adoption of the annual report and balance sheet, “and to discuss with the shareholders the operations for the past year, and as far I can its future prospects. As you have all been served with copies of the balance sheet I shall, as is usually the case, ask you to take them as read. From the figures submitted to you I think it must be apparent that the company continues in a very strong financial position, and shareholders have every reason to be satisfied with the manner in which the compan's affairs are being conducted. I do not propose to deal at any length with the accounts, but will briefly summarise them by noting that the nett profits for , the year, after appropriation of a substantial amount for depreciation and making provision for outstanding liabilities, are £19,696 6/-. The profits from freezing and other operations have been considerably augmented by the revenue derived from the company’s investments, thus fully justifying the policy which the directors have for some years adopted of strengthening its reserves in preference to distributing its profits. “Although the output last year was not quite so good as during the previous one, the improvement in the methods of handling, and, in consequence, reducing the cost of production, to which I referred at last , meeting, have also borne good fruit in the results now before you. Having this in view the directors felt justified in paying on September 1 last an interim dividend of 5 per cent on the paid up capital; which absorbed £5676 19/6, and the amount now standing at the credit of the profit and loss account is £31,822 2/4, from which they recommend the payment of a further dividend of 5 per cent, which will make the amount paid to shareholders by way of dividend equal to 10 per cent for the year, and that the balance £26,145 2/10 be carried forward, this being much the same as was brought forward from last year. “It is with very great regret that I have to report to you that during the past year we have lost, through faffing health, the services of two of our most esteemed directors—Messrs Cuthbert Cowan and P. L. Gilkison. Mr Cowan has been intimately associated with the company since its inception, in fact his name is the first to appear as a subscriber to its Memorandum of Association, and it must be a source of great comfort to him in his retirement to be assured that the shareholders recognize their rndebtness to him for his services. Mr Gilkison has also to his record a long period of service in the interests of the company both prior to and during his office as a director, and 1 the same appreciation is due to him in his efforts to establish the company in its present position. During the year Mr A. S. Hohns was elected to the Board, vice Mr Cowan, but the vacancy caused by Mr Gilkison’s retirement remains to be filled. Messrs Chewing? and Holms are the retiring directors, and both gentlemen offer themselves for re-election. “As I have already mentioned, there has been a falling off in the number of stock dealt with at the company’s works during the past year as compared with the previous one. This shortage was in a large measure due to the wetness of the season, which also produced a higher percentage of second quality lambs. Special attention bad to be paid to the grading on this iccount, not so much by reason of the weight of the lambs treated, but owing to their unfinished condition. Some disappointment was felt by the exporters on receiving the killing returns at the results, and it was currently reported that the lame standard of grading was not maintained at some of the northern works. In ‘.his connection I would refer to a report made to the Fanners’ Union executive lately, and published in the local press, on the subject of grading at Mat aura, and which we submitted to the Meat Producers* Board for investigation. In this instance as in the former, which we also referred to the Board, it is satisfactory to be assured that our standard is just right, being neither too severe nor too lax, but as the Board advises in the report of its inspecting grader very even, and in accordance with the standard set. It must be evident that if the premier position of New Zealand lamb on the Home market is to be retained, and our brand continue as it does at present to be depended on for its reliability, the proper course to follow is not to do anything that will weaken the confidence in it already established, ns would certainly result from a lowering of present standards. The difference in Mice between prime and second quality is usually fo great as would warrant careful drafting. “The following is a comparison of the numbers killed for export at all the freezing works in the Southland District for 1922 and 1923: Sheep. Lambs. Total. Cattle, 1922 51.644 432,138 483.782 1164 1923 37,068 395,266 432,334 1940 “During the year the usual attention has been given to the repairs and improvements to the company’s property. The latter included the completion of the cool-ing-room at Mataura, which is now capable of hanging over 3000 carcases. “Unfortunately on one or two occasions some interruption occurred in the supply of electric current to the Borough of Gore, through damagp to the Mat aura waterrace, and temporary breakdown of machinery. These accidents caused considerable inconvenience to consumers, but the Causes have been completely remedied, and Additional precautions taken, which I hope will guard against anything so serious •ecu rr ing again. “As to the future prospects I thing that the outlook is fairly good. This season so far has been abnormally dry, and we opened earlier than usual to deal with the lambs off their mothers, as they threatened to go back in condition owing to the shortage of feed. Having now finished these off we look for a lull during the next few weeks, until the stock fattens It is difficult to forecast the Home market prospects, as at present there is practically no c.i.f. buying, but within the next fewweeks, when the early shipments are arriv- ’ ing, there will be some better indication It is possible that this may be one of those seasons which will induce consignments from growers on their own account, and I would remind our friends that we are in an exceptionally good position to handle their meat for them if they desire. I am glad to say that this season we have been able to still further considerably reduce our freezing charges. "Labour.—On the whole we had no serious .difficulties to contend with in regard to labour matters, In the beginning of j

the past year some friction occurred, but it was not of long duration, and for the rest of the season there was no further ; interruption, nor do I anticipate any from i this cause during the present season. ’ “Congratulations are offered to the farm- ! ing community on the excellent prices now ! obtained for their products—particularly wool—which must be extremely gratifying and encouraging. Under such con- ; ditions it is not by any means improbable that those who have been turning their j attention to dairying exclusively will see in the growing of sheep and lambs a pro- • mising source of income. . The frozen pork industry is one also ■ which has been attracting a great deal of ; interest, and reports of shipments from ; the North Island indicate that the quality , of New Zealand pork is appreciated, and ! that there is a good market for all the I pork we can produce, provided the same i standard is kept up. ! "In conclusion, while congratulating the | shareholders on the success of the com- | pany’s operations for the year. I have to ! thank all its clients for the support they ■ have given it. and hope they will continue ’ to find it to their interest to do so. I “The thanks of the directors are due to I the Manager (Mr D. Cochrane' and his I staff of officers for the zeal and industry ! they have devoted to the affairs of the • company.” The annual report and balance sheet, I outlined in the Director’s Report, were unanimously adopted. Mr Mackintosh -seconded the adoption of the report and balance sheet and congratulated the directors on the able manner in which they had conducted the affairs of the company during the year. The motion was carried unanimously. ELECTION OF DIRECTORS. Messrs G. Chewings. A.S. Holms and J. T. F. Mitchell were elected to fill the vacancies on the directorate, the two first named being re-elected. Messrs Cuthbertson and Webb were reelected auditors. A vote of thanks was passed to the directors and to the members of the staff. ‘