THE BACON INDUSTRY

Taranaki Daily News, 14 October 1929, Page 6

THE BACON INDUSTRY

INGLEWOOD COMPANY’S YEAR THIRTY-ONE YEARS’ CO-OPERATION CHAIRMAN REVIEWS PROSPECTS. Another successful year's operations was revealed in tiie report submitted to the shareholders at the thirty-first annual meeting of the Inglewood Co-opera-tive Bacon Company, Ltd., which was held in the parish hall, Inglewood, on Saturday. Air. Arthur Alorton, chairman of directors ever since the inception of the company, presided over an attendance of about 100 shareholders from all parts of Taranaki. The annual report showed that the number of pigs received was a little less than during the previous year. The number for new .shareholders for the year had again been very, gratifying. Almost the whole of the shares had been allotted and it would be again necessary during the coining year to further increase the nominal capital of the company in order to provide for the additional new shareholders of the future. The requirements of the current year would probably be met from the number of shares which could bo forfeited during that period. Export prices during the year had shown considerable fluctuation, but the actual results had been somewhat disappointing. There had been very serious complaints made by the British bacon curcrs.regarding the quality of New Zealand frozen pigs, and this had probably had an adverse influence on values. The Government subsidy of one half-penny per lb had been continuously paid on all pigs exported. The amount of subsidy received by the company had been all paid out to suppliers. 'Taking into consideration the fairly high level of prices that had been paid opt during .the year, :and the .at times low level of London c.i.f. prices, the ultimate financial result of the year’s working was quite satisfactory. The company had paid out the full market price for the wltole year, and a further payment on the lower priced baconers had been authorised. This would be sufficient to make the minimum price for this class 5d per lb. This further payment would make the average price for all pigs received during the year 5.527 d per lb. The usual dividend of 5 per cent, on share capital had also been authorised. The usual allowance for depreciation had been made.

CHAIRMAN'S ADDRESS. The chairman expressed regret that the results of the season’s working were not quite up to the level of the previous season. However, something in that direction had been anticipated by the directors, as for the greater portion of the year the prices ruling on th© foreign markets, on which they depended in exporting pork and bacon, were not very fucouragmg. Notwithstanding that, however, he was pleased to state that the Inglewood company had not only paid out full market value, keeping on. a level with their competitors, but hi'addition were paying a bonus on pigs supplied as well'as 5 per cent, interest on share capital. On their large share capital the payment of interest was a considerable item, entailing a sum of over £BOO, which would have been sufficient to pay a further substantial bonus. Seeing that the pig to-day was conducted on the basis of the export values of their produce on the market, the questions of the level of prices on that market and of the quality of the produce were of prime importance. Regarding the price on the Home market, Air. Morton pointed out that they had’ to meet with competition from al! other combines that were able to export. In some cases their competitors were able to produce more cheaply than was possible in New Zealand. In other cases, of course, production was more costly as the latter had to meet the same competition on the London market they could only produce at a loss. He then spoke at some length on the question of “fishy flavour” in pork, and is reported elsewhere. Air. Alorton said there had been a decrease in the number of pigs supplied; not a substantial decrease, but about 2090, the supplies being 20,670, as compared i th 22,835 for the previous season. They had collected their pigs from the same districts as in previous years and he thought the reduction did not apply, to, any. particular, district. He anticipated there would be a still further reduction this year, as in his opinion there would not be so many pig's produced. One had only to • look round to see the large number of calves being reared this season to realise that it would not be possible to raise so- many pigs. Another aspect was that there were not so many breeding sows, and young pigs were at such a high price that fanners did not care to buy them. Altogether he thought the lot of the farmer who went in for fattening pigs would not be too happy, as there was not that margin of profit that was desirable. INCREASE IN SHAREHOLDERS. There had, Air. Morton continued, been a considerable increase in the number or shareholders, the total now being 1300, spread over the same district as m the previous year. Though three years ago the share capital had been increased from £20,000 to £30,000 it was now practically all exhausted, only 134 shares being available, and these would be allotted within a few weeks. By calling

up unpaid share capital it might be possible to receive another 2000, but he considered next year it would be necessary to further increase the capital. There was necessarily an increase in the share capital paid up. On 29,860 shares £18,250 had been paid, an increase of £1584, thus showing the stability of the company. It had again been possible to transfer a considerable sum out of the insurance fund to the general fund, the amount this year being £550. That was due to the fact that out of 20.670 pigs only--191, or less than 1 per cent, had been condemned. He did not know of any other factory that could show such a record, and the fact that that recoid was spread over a number of years showed that the Taranaki district as £ whole, so far as the health of pigs wap concerned, was remarkably good. i Mr. Morton reviewed the balaneer shcet pointing out that on the assets side there was very little. change, the only alteration being where there were additions due to alterations of building and plant; and depreciation. There was a balance in credit at the bank sufficient to pay the .bonus and interest: share capital. The year had commenced with a very heavy stock in hand, totalling £11,860, but it had ended with stocks valued at £8591. The company had paid £48,348 for the pigs, or only £3OOO less Gian was the case last year, when over 2000 more pigs had been purchased. OUTLOOK MORE HOPEFUL. As far as he could judge the outlook at the present time was more hopeful than was the case 12 months ago. Prices on the London market at the present time were fairly high, but at present there’ was nothing to export. Companies were buying all the bacon pigs ■ they could to fill local requirements over Christmas. The prices on the London market were higher for porkers, but there were practically none of those in the country to-day. Owing to the fact that farmers had been offered a penny per pound more for baconers than porkers they had been concentrating thenefforts < fattening to bacon weight, and their experience had been that so few porkers were coming to hand that they had not been able to get- together a parcel of sufficient dimensions to oiler on the London market, so that he could not definitely say what porkers would realise on the London market. He was hopeful,. however, of a considerable reduction in the volume of pigs imported into Britain from other countries, and for some months to come there were indications that there would be a scarcity of frozen pork. If that were to continue it should be of benefit to the New Zealand producer. It would be found that if the prices of porkers kept high baconers would also command a good price, in which case they would be able to export baconers also. However, when they had a consignment available for export they would be able to ascertain definitely what the position on the London market actually was, and he hoped his predictions would be borne out. Mr. Morton referred to the causes leading up to the dismissal of the late secretary and added that the dii ectoi s had appointed to the position Mr. E. R. Coutts, a local young man whom he felt sure would fill the position with credit. The chairman’s motion was seconded by Mr. F; Nundt. imiid

In reply to Mr. F. W. Stanley the chairman stated that the company was still paying «ls extra for pigs at l -Srnart Road. After a little further discussion J dhe report and balance-sheet were adopted. The retiring directors, Messrs. .'A; 'MWrton, R. D. Milne and R. B.- Suttbnp were re-elected unopposed. . L'-. Mr. T. C. H. Nicholls was re-elected auditor, the honorarium being -increased from £l5 15s to £3l 10s. ’ " _ Votes of thanks' were accorded The manager, Mr. J. Allan, and staff for their services.