TOOLING” OF LAMBS

Southland Times, Issue 20539, 16 July 1928, Page 2

TOOLING” OF LAMBS

FARMERS’ UNION PROPOSAL. FROZEN MEAT COMPANY FAVOURABLE. , A suggestion that the Southland Frozen Meat Company should be approached by the Farmers’ Union with a view to securing concessions on union members’ lamb killings and enable members to pool their lambs for export was incorporated in a remit carried at the recent provincial conference of the union. A committee was set up to make inquiries as to the prospects for such a scheme and on its report Mr J. Gilkison, chairman of directors of the company, was invited to attend the next meeting of the executive of the union. Mr Gilkison was present at Saturday’s meeting and addressed the executive on the subject. He said that the company was vitally concerned with the export of lambs. There had been a very good output during the past season and the company had handled over 300,000 carcases which was an increase of about 80,000. It was in the interests of the company that even this total should be exceeded as this would result in reduction of freezing charges and ensure more regular shipments. During the season just closed the company had bought a very large number of carcases involving payments to owners of in the vicinity of £300,000. To do this was a very big risk and if the Farmers’ Union members would handle their own lambs to the extent of say 40,000 or 50,000 carcases and take the risk of the market he was sure his company would welcome the proposal. The only stipulation that would be made was that such lambs should be sold through the company’s present agencies. He explained that his company could not allow a considerable quantity of lambs thrown on the market and sold at a price lower than that being asked by the company, thus reducing the price of the larger quantity. He suggested that a definite offer should be made to the company and a request made that a rebate be allowed on charges to farmers willing to draft and deliver their lambs to the works. In order that the business might be put on the best footing he suggested that a definite contract should be entered into, members of the union participating guaranteeing to supply the whole of the season’s output. No doubt the farmers would desire advances on their lambs and if this were so it would be necessary to charge the usual bank rate of interest. The company had made arrangements to secure its marine insurance at a reduction of one-half per cent, and farmers would receive the benefit of this. The usual freezing charge was .9d per lb but if a definite quantity could be supplied the company would probably secure the benefit of a sliding scale. After Mr Gilkison had answered a number of questions, it was decided that members of the meat and wool committee of the union confer with the directors of the company and formulate a scheme to be presented at a later meeting.