The Dominion FRIDAY, DECEMBER 3, 1926. OUR DEPRESSED FREEZING INDUSTRY

Dominion, Volume 20, Issue 59, 3 December 1926, Page 10

The Dominion FRIDAY, DECEMBER 3, 1926. OUR DEPRESSED FREEZING INDUSTRY

The depressed condition of the freezing industry is well illustrated by the balance-sheet figures of a number of freezing companies. Quite a number of balance-sheets hate come to hand recently, and the paid-up capitals and the profit and loss of eight companies, whose detailed figures have already been published in The Dominion, are illuminating. They are as follow:— fAnh-,! Profit T

It will be noted that four of the companies made an aggregate profit of on a total capital of £375,388, equal to a little more than 3 per cent. Four of the concerns, with an aggiegatc capital of £363,610.. show a loss of £11,369 on the past year’s operations. It should be pointed out, however, that the capital of_the Wellington Meat Export Company has been written down by £150.000 to cover past losses and depreciation. In the case of the Otaihape Farmers Freezing Company the accumulated losses total £22,311. The eight companies quoted above show. 1 a net profit of £240 on a paid-up capital of £738,998. Of the eight concerns, only one. the Auckland Farmers’ Freezing Company, paid a dividend. This concern paid a dividend of 6 per cent., absorbing £11,935, while the net profit for the vear was only £8582. It was by drawing on the amount brought forward (£3717) that the comparatively large dividend of 6 per cent, was made possible, but the amount remaining to be carried forward is reduced to £364. In the table appended below is shown the fixed assets, of the companies referred to and the bank overdrafts. The V airarapa Meat Company; is omitted because this concern docs not own the works, but holds them on lease with right of purchase:— Value of

1,090,208 382,265 The North Canterbury Company has lumped together sundry creditors and drafts against consignments, these items amounting to £43,537, and it is probable that, about £20.000 would represent bank overdraft. Apart from this, it will be seen that the bank advances equal more than a third of the value of the fixed assets. To some extent the decrease in killings may account, for the smaller returns. The slaughterings for the season from November 1, 1925, to- October 31. 1926, compared with the figures for the previous season arc as under: —■ . _

It may be argued that the figures of the companies quoted represent the worst side of the position: that the balance-sheets of other freezing companies will disclose a more satisfactory state of. affairs. This mav be true in some instances, but the fact still remains that the position of the industry as a whole is one which justly gives occasion for grave concern, a .

Company. Wellington Meat Export .. Capital. £ .. 144,304 Profit. £ Loss. £ 3221 Auckland Farmers’ ....... .. 204.092 8,582 — Wairoa Farmers’ .. 98,440 247 —— 2.199 ——- .. 67.854 — 2,043 .. 34.920 581 — North Canterbury 84,855 —— 187 .. 66,597 — 5,918 738.998 11,609 11,369

ivories. Overdrafts. Co pi pan v. £ . £ Wellington Meat Export . . 234.376. .128.710Auckland Farmers’ ....... . 382.570 147.274 Watroa . 170.923 64,783 Otaihapc . 71,422 . 15.036 Nelson ....... . 49,032 5.810 . North Canterbury. . 116.419 South Otago ... . 65,466 20,652

.1926. 1925. Beef (quarters) 215,594 458.549 Wether mutton fc/cs.) .. 1.223.754 1.271.221 Ewe mutton (c/cs.) 777,586 953.042 Lamb (c/cs.) 5,000.590 4,750,164 Pork (c/cs.) 60,757 36,753 Boneless beef (freight c/cs.) 223,415 263,738 Sundries (freight c/cs.) .. 111.229 54,961