IN AND ABOUT THE FARM.

Waipa Post, Volume IV, Issue 172, 17 December 1912, Page 4

IN AND ABOUT THE FARM.

WAIKATO FARMERS’ COOPERATIVE BACON COMPANY, LTD. FIRST ANNUAL MEETING. The first annual meeting of the shareholders of the Waikato Farmers’ Co-operative Bacon Company, Ltd., was held at Hamilton, in the company’s office Frankton, on Thursday. There was a good attendance, and Mr J. Barugh, chairman of directors, presided. The report and balance sheet were read as follows

In placing the annual balance sheet before the shareholders, your directors regret to report that the result of the first year’s operations has been unsatisfactory, inasmuch as a considerable loss has been made.

Condemned pigs have been one of our chief sources of loss. During the past season, the company paid the farmers full rates for all pigs received. Owing to the high price paid, and the number of pigs condemned by the,Government Inspector, the net loss under this head alone amounted to £1295 its 6d, which will not occur again. The Government is now paying the compensation for condemned pigs direct to the farmer, through the company, and with the improved method of identification, the veterinary department will know the farm on which the pigs were fattened, thus giving it a better chance to ascertain the cause of the disease and advise the farmers on the matter.

The price of bacon pigs has been far too high in proportion to the price obtainable for bacon, and though the company is turning out a first-class article, and obtaining top market price, a heavy loss has been sustained.

There is a limit to the price at which the public will consume bacon in any considerable quantity, and when the price of bacon pigs is excessive, a loss is inevitable.

Heavy pigs have also been a source of trouble, as heavy bacon can only be sold at a reduced price. Added to these causes was the enlargement of the works, which had to be done during the baconcuring operations last season, so as to enable the number of pigs that were sent in by shareholders to be handled, but which made the work of curing more difficult and costly. The works are now very efficient, the latest labour-saving appliances having been installed throughout, and the work of slaughtering, curing, and packing has been let by contract, so that it should be carried out in the most economical manner.

During the first two months of last season, when the alterations were going on, some indifferent bacon was turned out, which was the cause of loss, but for the last ten months the quality has been second to none, and although the company has had a bad time, your directors believe that, with the experience gained, and the loyal support of farmers, the company will yet be a success. Balance-sheet as at 31st October, 1912.—Liabilities: Nominal capital, 30,000 shares at £l each, £30,000 ; issued capital shares of £l, £8522, less uncalled on same, £5462 15s —£3059 ss; less unpaid allotment fees £sl I2s 6d; unpaid calls, £2O4 —£255 I2s 6d—£2893 I2s 6d ; add application fees received in respect of shares not yet allotted, £l 5 I2s 6d; calls paid in advance, £1305 10s —£1321 2s 6d; bank of New Zealand, £20,565 16s 9d ; creditors — shareholders for pigs, £313 9s id; ordinary trade, £612 I2s. Total £25,616 12s iod. Assets: land, buildings, plant, and machinery, £13.175 is 7d; less—unpaid on land, £1125 ; unpaid on machinery and p’ant, £1322 Ils 6d — £10,727 iosid; railway siding, £690; horses, carts, etc., £ll4 3s 8d; stock on hand, £6046 18s iod; unexpired book debts, £4006 8s 9d; preliminary expenses, £352 18s 8d ; cash, £4 14s 2d ; balance, £3561 18s Bd. Total £25,318 12s lOd. Profit and loss and account.— Dr.: October 31st, 1912; Stock at 31st October, 1911, £ll9l 14s 3d ; purchase of piles, etc., £27,677 15s 5d ; condemned pigs, £1295 Ils 6d; materials, boxes, insurance, repairs, rates, horse-feed, and coal, £2561 15s 4d ; wages, £2335 18s 9d ; salaries, £793 Us iod ; printing, stationery, and general expenses, £448 7s 3d; interest, £970 15s 6n ; directors’ expenses nnd auditors’ fees. £54 4s; bad debts, £35 15s sd. Total, £37,356 9s 3d. Cr.: by net sales, £27,729 ns 9d ; by stock, £6046 iSs iod ; balance, £3561 18s Bd. Total, £37,356 9s 3d- . r f In moving the adoption of the report and balance sheet, the chairman said that it was regrettable that the directors had to meet them at the first aunual meeting without a satisfactory report, but, in view of the circumstances, it was not surprising, the causes being not far to seek and were well-known to all.

Owing to the keen competition, the price of p »rk H~t season had been forced up and maintained, at a level which could leave nothing but loss to ba~on curers. With a small excepti >n, the whole of the bacon pigs were bought

last season at 5%d per lb, and it was not as if these were all sound pigs. No fewer than 6 per cent were wholly condemned by the government inspector, the result being a loss of £1295. It must be manifest to all that this could not continue, and allow a fair price to be paid for sound pigs. The loss in this direction was now borne by the farmers who bred and fattened the pigs, and it was for them to say whether they intended, by means of a mutual insurance fund, or some other way to be protected from loss in future. One of the results would be that farmers would take more care of their pigs than had been the case in the past.

The total loss for the past year was not so great as represented by the figures in the balancesheet, as any valuation of the assets would unquestionably add £2OOO to the assessed value of the company’s land, which was purchased at a very moderate price, and was a valuable and increasing asset. One of the most important points to be taken inta consideration when viewing thi result of the company’s operations, was the effect which it had on the market value of pork. This was the primary object of the company, and or.e of the chief arguments in favour of bringing it into existence was that it would raise and steady the market price of bacon pigs. What are the facts ?

For the two years preceding the formation of the company, the most liberal estimate could not place the average price of bacon pigs above 3%d per lb, whereas during the year just ended, the price paid to farmers for at least 80 per cent of their pigs was 5%d per lb and for the whole 10,0000 pigs, including choppers and porkers bought at lowest rates, the price reached out at 5d per lb, wlych represented an increase of lJ4d per lb for the" whole of the company’s purchases, a total of £6300 over and above what they would probably have received had the Farmer’s Cc-operative Company not been in existence.

Referring to the working of the company, the chairman said the business was always an uncertain one, the goods being very perishable, while the market was subject to sudden fluctuations. Added to this was the want of an outlet for any surplus over local requirements, export being impossible while present prices ruled. The Australian market had been tried, but could not be availed of except at a serious loss, while neither the British or Canadian markets offered much better prospects at present. New Zealand itself was an excellent market for a certain quantity of bacon, if it could be produced and sold to the consumers at reasonable prices, but it was a mistake to force prices up until the consumption became seriously affected, and it meant a smaller outlet for future supplies, and the indications were for larger supplies as the dairying industry developes. In referring to the coming season, the chairman said that the outlook was fairly bright. They, were turning out a firstclass article, and had established, a good trade, regular consignments going to southern districts, while the Auckland trade —at first of small dimensions —had grown considerably during the last four months. Owing to alt ring the works, during the killing season and other causes, the cost of killing and manufacture had been excessive. They had now placed things on a different footing, all the work being done by contract, so that they knew what it would cost. The company had gone to considerable expense over buildings and machinery and now had a plant second to none in convenience and efficiency, while a considerable saving had been effected by having a private railway siding, whereby pigs, coal and all requisites were delivered right into the works, manufactured goods being loaded into the trucks and sent out in the same manner.

In view of the good work done, the amount of support given by farmers in the way of taking up shares had up to the present not been what might reasonably have been expected, the total shares applied for and capital subscribed being very small in proportion to the amount of business done.

As they all knew, the directors had assumed heavy responsibilities for the purpose of furthering the best interests of farmers, and certainly deserved the hearty support of all who were interested in land, or were desirous that those who tilled the soil should receive the best return for their products. Given this support the future of the company should be successful. The chairman then moved the adoption of the report and balance sheet. The motion was seconded by Mr Watts and carried. Mr English was re-appoint-ed auditor at a salary of £25.