HIGHER CROSS PROFIT

Waipa Post, Volume 49, Issue 3525, 29 September 1934, Page 7

HIGHER CROSS PROFIT

AUCKLAND FARMERS' FREEZING CO.. LTD. CHAIRMAN'S REVIEW AT ANNUAL MEETING. (Special to Waipa Post.) At the annual meeting of shareholders of the Auckland Farmers' Freezing Co., Ltd., held in Auckland yesterday, the chairman of directors, Mr H. E. Worsp, in moving the adoption of the annual report and balance sheet, commented on some of the items therein, and upon the prospects for th 6 future. Incidentally he imparted some information that is of universal interest.

Mr Worsp said it is evident from the figures given that the company has done a great amount of work during the year, and in consequence of the larger turnover, the accounts show to greater advantage. "You will notice," he said, "that paid up capital is less than a year ago by £5,194. This is accounted for by the fact that during the year the capital was reduced by £17,700 to enable payment to be made to R. and W. Hellaby, Ltd., of their holding of shares of a similar amount, whilst calls paid during the year on B shares amounted to £12,516. Bank overdraft is £28,945 less than,a year, ago. Sundry • creditors, however, are greater by £16,000, whilst sundry debtors are less by £15,000. "It is on account of the very busy season experienced that the working account shows a higher gross profit than last year, the increase being £15,350. Profit and loss debits increased by approximately £7,850, leaving an extra net profit of £7,500. It is three years since any profit in excess of that required to pay a dividend has been available for transfer to reserve, but this year the directors are able to recommend the transfer of £IO,OOO to that account. It is obvious that by increasing the reserve to this' extent, the financial standing of the company will be correspondingly improved. Export prices of meat: Exporters opened last lamb season with B!Jd per lb "overall" for prime light weights for early November shipment. Later in the month the schedule was dropped to 8d and later 7d, then 64d in December, 7d in January prices gradually rising in February, March and April until 8d was again reached, the season finishing at this price. The demand in London for lambs arriving in time for the Xmas trade was rather disappointing. However, from January onwards prices were well maintained, all light weights selling extremely well. Wethers and ewes: A strong markel for wethers and ewes was experienced throughout the season, the "on hooks'" prices paid being from 4Jd to 5d for wethers under 48 lbs, and 4 3-8 d to 1 5-8 d for the grade 49 lbs to 56 lbs, with 3d less for 57's to 64's. Ewes were in good demand at up to 3id for light weights, and farthing reductions for the heavier grades. Prime ox beef remained fairly steady throughout the season at 17s per 100 lbs "overall," boner cows at 7s 6d and later 6s 6d, and boner bulls at 12s 6d to 10s. "On hooks" prices for porker pigs varied comparatively little, ranging from 4Jd to 53d, according to weight, with baconer weights at from 23d to sd. Taking values right through, farmers had little cause to complain of the prices they received for their fat stock and under the conditions existing, should be well satisfied if equivalent prices are available during the coming season. Dairy produce: The increase in the quantity of butter received for the year was equal to 8.8 per cent, whilst cheese increased by 2.1 per cent. Fruit: Almost the same quantity of fruit for export was handled as in the previous year, but a considerably greater quantity was received for local consumption. Additions to buildings: I mentioned last year that it had been decided to add another storey to the Horotiu freezing block. This work was completed during the year, and proved a valuable asset. On account of the increased quantities of stock being killed at the Moerewa works and which, of course, require cold storage space, it was also found necessary to increase the accommodation there. An addition made during the year increased the storage acocmmodation of these works by 50 per cent. Works labour: It is a pleasure to report that not the slightest friction has occurred between the company and its numerous employees during the'year. The men have shown their desire to work harmoniously both with their employers and amongst themselves, the result being general satisfaction to all concerned.

Waikato representative: Mr P. H. Anderson, of Hautapu, recently resigned from the board of directors as a dairy company representative in order to take up the position of the company's South Auckland representative. Mr Anderson was a director for five years, is well acquainted with the policy and* methods of the company, and is well known to South Auckland farmers. He should be quite competent to keep the company's name and objects before the farmers, and will also be available, to give them assistance and advice in many ways. The Imperial Government has decided that all meat, with the exception of frozen beef, shall as from the beginning of 1935, be in the case of all imported Empire meat branded with the name of the country of origin, and in the case of imports from foreign sources, with the word "Foreign." As sheep and lambs have to be branded in six different places and pigs in eight places, this will result in additional expense and considerable disfigurement of the meat. The object is to protect the British producer, but whether it will do so is a moot point, as the disfigurement of imported meat will quite likely reduce the price obtainable for same, with the natural result that English will also come down in proportion. Concerning farmers: Last season's rise in the price of wool, sheep and lambs, just came in time to save most of the sheep farmers from ruin. Although prospects for wool this season do not seem particularly bright, it is to be hoped that prices for wool, mutton and lamb will be such that sheep farmers will be enabled to maintain most of the advantage gained. Present prices for dairy produce are very low, and I sincerely hope that an improvement in prices will soon take place, as one is long overdue. In the

meantime the dairy farmer is experiencing a most trying time. \Yhere farmers can possibly do so, I would advise them to endeavour to keep their farms in order and to maintain and improve, if they can, the quality of their stock and produce, so when times improve, as they inevitably must, then they will be in a position to take immediate advantage of the position. . I would like to say here how much the board appreciates the loyal support accorded it by a very large proportion of the primary producers. They show by their action how alive they are to the necessity of farmers owning and controlling their own freezing works. I cannot impress on them too strongly the necessity for doing so, perhaps more particularly now than at any time. We notice an increased sense of loyalty on the part of the farmers year by year. They continue to take an increased interest in their own concern, realising that by so doing they are serving not only their own interests, but the interests of the whole primary producing community. It is to be hoped they will always recognise the great measure of protection that the existence of this company affords them. Staff: The company possesses a very excellent staff at all works, and in each department, likewise in the office. The efficiency shown throughout the multifarious transactions of the company, testifies to its excellence and the company's long period of successful business has been contributed to considerably by the loyal and whole-hearted service it. has always received from the staff.

When the retiring directors, Messrs E. M. Edkins and J.. G. Ritchie were declared re-elected, the chairman congratulated these gentlemen on being returned unopposed, saying that they have the confidence of the shareholders.

The same remark applied to the directors representing the dairy industry, who were returned last June, also unopposed. This shows that they enjoy the confidence of the industry and incidentally that the industry is well satisfied with the Auckland Farmers' Freezing Co's conduct of its business. "While on the subject of directors,'' Mr Worsp said, "I should like to take this opportunity of paying a tribute — a real tribute—to my fellow directors, both past and present. I have been a director of the Auckland Farmers' Freezing Co. for many years, and it has been a pleasure and a privilege to be connected with a company that has always been controlled by men ever ready and anxious to devote their thought and energy to its welfare; who have not been easily discouraged; men who, once they have decided upon the right course to pursue, have not been easily dissuaded and who, as a result, have maintained this company in a strong position and upheld its reputation in the freezing industry for efficiency and fair dealing."