MEAT IS A BIG BUSINESS

Press, Volume XCV, Issue 28262, 27 April 1957, Page 9

MEAT IS A BIG BUSINESS

Freezing works statistics

The average capacity of the Dominion’s 32 freezing works provides for processing round 8000 lambs and/or sheep daily, to aggregate a total of 256,000. Normally they work to about 80 per cent, of maximum because of such factors as manpower, draftings, and so forth. So, at the peak, the kill will range about 200,000 daily or 1,000,000 head of fat stock processed during ft week.

Taking typical fat lamb country as yielding four lambs an acre, the industry can, in effect, clear 50,000 acres a day or 250,000 acres in a week, the latter- equalling a strip of country 30 miles long and 12 miles wide.

Mid-January usually sees the peak of the season, but this year that has fallen in February because of a belated start in the North Island, For this single mpnth the freezing industry paid out to fat stock producers an estimated £12,500,000. In addition, works incurred operating expenditure of towards £4,500,000 for wages, power, stores and so forth. So, altogether, £17,000.000 had to be found in the month. At March, 1956, the meat industry had an overdraft of £19,500,000. At present level of prices, the need could be for even a higher sum this autumn.

Heavy Burden The financial burden of the industry is a heavy one that has to be carried over long periods each season. It involves very great marketing risks; not only to exporting companies but also to those termed processing companies which live by their freezing charges. Thus it is.that at certain stages of the season round £50,000,000 of operating capital may be involved. Quite apart from bank accommodation here, the companies have to employ millions of pounds of their own resources. Interest charges are a major concern, as even on £1,000,000 these run over £lOOO a week.

Beyond providing vital processing plant, those engaged in the freezing industry provide our farming with a highly essential financial service which facilitates orderly marketing and hence the best possible realisation for ■ the manifold products of the meat industry.