WOOL AND MEAT.

Hokitika Guardian, 1 December 1927, Page 1

WOOL AND MEAT.

OUTLOOK F A'VO UR A ILL I

AYELLINOTON, Nov. 29. “AA'itli the present prices operating, | for wool and oilier primary products we are of opinion that prospects are much more favourable than they have; been,’’ said the chairman, Air O. R. AVatkins, at tilt annual meeting of .shareholders of the Wellington Meat Export Co., Ltd., to-day. While striking a, generally optimistic note, he uttered a word of caution that New Zealand exporters should he careful as to the quantity of secondary lambs sent to the Old Country owing to the large quantity of low grade lambs going forward from Australia and some parts of the Argentinc. There was an attendance of about 20 shareholders, including the directors. Tile annual report ami balance .sheet were adopted and a formal* resolution to pay a dividend of 8 per cent, on preference shares, carrying forward a balance of 26233. was carried. fn drawing attention to the sub-

stantial improvement in the company’.' affairs. Air Watkins said that Hit merger with the Wnirarapn Frozen Meat Co.. Ltd., having been completed during the year, the, paid up capital now stood at £231,(531, as against 1.5M1.301 a. year ago, and the. effect of the introduction of fresh capital uas seen in the red net ion of the company's indebtedness to its hankers, the overdraft now being £30,700 Ts -Id, as against £128,710 12s Id at September, 1920, and there were sufficient liquid stocks to cover this amount. The overdraft had since boon further reduced in anticipation of a heavy killing season as the outcome of the merger. Considerable alterations had been made to the buildings and plant at Kgahnuranga. The electrification of the power plant had proved an outstanding .success, and certain rearrangements of the refrigerating, machinery would enable this department to meet all demands made upon it.. The directors considered it unnecessary to provide for depreciation beyond the amount written oil" motor vehicles. A new departure was the erection of a son]) factory, the company having taken over the snap manufacturing business which the AYairarapa company had carried on successfully for many years. While the eventual profit on tho year’s trading left a satisfactory balance, the market throughout the season was a very iluoluating one, and there was a. long period when profits were a diminishing quantity. Not, only was the meat market unsatisfactory, but the tallow market went though a severe period of depression. AA'ool. however, stood well. This showed that the industry was of a. speculative nature and at times hard to control. It was now generally recognised that concentration of the industry in factories of large capacity was the most successful way of carrying on Hie business, as overhead charges were decreased.

Referring to the prospects for next season, Air AVatkins said it was always a difficult matter to l'orerea.st tho trend of prices in the trade. Owing to the good winter, stock was coming forward in excellent condition, and the value of top-dressing was apparent in the large number of lambs-of good quality coming in to the works. There had been an increase of about one million ewes this year, which should provide at least an additional half a million lambs for export. “it is doubtful.” continued the chairman, “whether prices in the Home markets will remain at their present high level, hut on the other hand there seems to he evidence of a steadier tendency for the future, so that. Iluctuations in prices may not he as violent as they have been in the past. Our London agents have been warning us recently that owing to the large quantity of low grade lambs going forward from Australia and some parts of the Argentine. New Zealand exporters should he careful as to. ihe quantity of secondary lambs sent torward from here, as the market tor these will he affected by ihe prices at which, the competing lambs are sold. AA'itli the present prices operating for wool and other primary products, we are of opinion that prospects are much more favourable than they have been, and the directors hope that next year will show a still further im- 1 prominent in the prosperity of the company," Messrs AY. D. Hunt.. IT. Morrison, AA . R. Bennett, and O. R. AA'atkins wore re-elected directors.