FREEZING COMPANIES

Marlborough Express, Volume LX, Issue 231, 30 September 1926, Page 4

FREEZING COMPANIES

THE PROPOSED MERCER.

[Spegial Corresfondent. 1

WELLINGTON, Sept. 29. At the annual (meeting of the Auckland Farmers' : Freezmg Company last week a little more light was thrown on the suggested merger of freezing companies. It was stated that a seheme had been evolyed based on the idea of separating the twro> sides of the meat trade, that is, the work of receiving. killing and preparing for export with its side lines, or the pure worli as a freezing works, separated from the buying and dealing in stock and frozen produce. 'To achieve this it was proposed to create a board to be controllecl by the farmers of New Zealand, to have sole right of owning and operatiug the export, meat freezing works cf the Dominion, maintaimng the open door policy to all owners of stock who might wish to have it treated

for export. The aim, it was contended, was to maintain the possibility of as much competition for the produce as eould be. This is quitje nebulous. It proposes another Ocntrol Board, which seems ridiculous, Indeed the advocates of the scheme have very little confidence m its success. The depression in the meat industry is said to be due to compqtition by propi'ietary companies, which also appears to be l'idioulous. The proprietary concems offered to buy stock at a price, but tliere was no obligation on the part of the farmers, to sell. They could still have made use of their freezing works to ship' on own aceoimt, but they preferred to sell to the proprietary coitoerns than to accept the marketing risks. It is not the competition of the proprietary ooncerns that has affected the industry, but the over capitalisation that was foolishly indulged in by farmers in many districts. There are too- many works in the Dominion, and the remedy liesi in wipmg out the surplus works. 'jL'liis will mean a loss to individuals, but it is the only effeotive remedy. Another control boixrd of elected farmers is not required.