TARANAKI FARMERS' MEAT COMPANY.

Taranaki Daily News, 19 August 1918, Page 6

TARANAKI FARMERS' MEAT COMPANY.

'A SUCCESSFUL CONCERN, ANNUAL MEETING. The annual meeting of the Taranaki farmers' Meat Company was held in the Good Templar Hall, New Plymouth, on Saturday, Mr. J. i\ Quin, chairman of directors, presiding over an attendance of about 150 shareholders. CHAIRMAN'S ADDRESS. In moving the adoption of the report and balance-sheet (as already published) the chairman stated that the company did not start under the most favorable circumstances. The difficulty of procuring a suitable site, the high cost of materials, and the scarcity of skilled labor all contrived to handicap the company in its early stages, and the shortage of shipping and consequent strain on its finances also contributed their share to the difficulties which had to be overcome. The latter difficulties were still with them. In fact, the shortage of shipping was much worse than wiion the company started, and it was therefore jail the more gratifying that notwithstanding the difficulty of marketing the company's products the accounts showea a substantial profit. A considerable increase had taken place in the quantity of stock treated. This was rendered possible by the construction of an additional cold storage block and the introduction of a new method nf storing carcases of mutton and lamb by telescoping them, and the increased support accorded the company went iu prove not only the loyalty of the snareholders to their own company, but that the works were a. necessity for the district. Unfortunately, the works were not yet large enough for the requirements of the district, and as a consequence a considerable quantity of stock had to be refused, and many clients c/T the company had to wait a considerate time before the works could take their stock. The remedy for this state of affairs lay entirely with the shareholders themselves. If sufficient money were subscribed to increase the capacity of the works the directors would see that it was well spent. The subscribed capital had increased from £49,195 at June 30, 1017, to £92,350, an increase of over £43,000, of which the Taranaki Producers' Freezing Works Company had contributed £25,000.

The item "sundry creditors and advances against meat and other stocks" was large, and comprised for the most part advances against meat. Since the books were eloped for the year, however, the Xf\v Zealand Government received from the Imperial Government the sum of £3,000,000, as an advance payment free of interest, and this had bean distributed amomr the various freezing companies in the Dominion, the company's share being over £50,000. The company had also been successful since the closing of the accounts in getting shipping space for pelts, tallow, and preserved meals, and although the quantities shipped were not large, this account had been reduced correspondingly.

A sum of £2OOO had been written off for depreciation. This the directors considered sufficient, 111 view of the fact that the building* and plant were practically new. The preliminary expenses, amounting to .€52(5 !)s fld, had also been written off, and out of tlie balance available the directors recommended the payment of a dividend at the rate of 5 per cent, per annum on the paid-up capital. A very high standard quality had lieen attained for the various products manufactured by the company. The foremen of the various departments had exercised great care in the preparation of the pood? entrusted to them, with the fcsult that good prices had been obtained for the by-products Bold. Unfortunately the shortage of shipping facilities still left, a large amount of stook on hand, hut they hoped before next season commenced to see the bulk of it disposed of. As many farmers had been looking to the company for manures, it was only right that he should state the position of the company in this connection. The manures manufactured by a freezing company from the offal were insoluble, and in this condition they were quite unsuitable for crops where a quick return was necessary, owing to their slow action. It was therefore necessary, in order to make the plant food in them more readily available for immediate use, to mix l them with artificial manures, such as superpliospbiate, nitrare of soda, etc., and these chemical manures were most difficult and costly to procure at the present time. Even if they had the necessary plant, it would be impossible at present day prices to put on the market a manure to sell at an equal price with their competitors who had been able to accumulate stocks at much cheaper rates; and, quite apart from the amount of money required to buy stocks of imported manures, the cost of a building large enough to accommodate these stocks and the necessary mixing plant would be considerable. The directors estimated that about £12,000 would he required to establish this department, and while the present demand for increased storage continued the company had no surplus funds to invest in this department. The directors had entered into an agreement with the Taranaki 'Producers' Freezing Works Company, Ltd., whereby, in consideration of that company taken up shares to the value of £215,000, they had undertaken to provide them willi storage accommodation capable of holding 100,000 boxes of butter. The building was now in course of erection, and provision had been ma(rc for one floor to be reserved for oheese storage if necessary. Thev had already materially assisted the dairying industry by storing about 10.000 'boxes of 'butter in the early part of last, season. The greatest handicap to the industry at the present moment was, of course, the shortage of shipping and the consequent inability to provide out of the existing storage accommodation sufficient space foi next season's output of frozen meat. There were at present in siiue m the Dominion 5,200,000 freight carcases, some of this being 1016-17 meat, and on a modest estimate 52 steamers of a capacity of 100,000 freight carcases each would be required to empty the stores at the present time, without auuwing for the accommodation of butter and cheese, which was also very heavy. The Council of Agriculture had issued recommendations to farmers and companies regarding the slaughter for export of second class and female stock. He added that this company did not freeze interior ptock last geaaoa, but treated such

carcases through its preserving department, which had proved a valuable adjunct to the works. The position of the meat storage accommodation at tile works for n-:;t season was serious unless a greater quantity of meat was exported than anticipated, and while the new storage block which was now Hearing completion would be of con- ' 'ruble assistance, it would lint carry tin- company past the month of January next. The directors were therefore faced with the prospect of providing further cold storage buildings, and while, no doubt, assistance could be obtained from the Government, in the way of a loan, adequate security would be required, and it w : —'J be necessary to once more ask the shareholders to take ap further shares in the company. During the last few days a proposal had been put forth suggesting that the commandeer of meat should be extended from six months after the war as at present arranged to twelve months from •nine 30 following the cessation of hostilities, and this proposal had been almost unanimously accepted by the freezing companies. The reasons weighing with the directors in accepting this proposal were the of a very serious slump in the prices of stock at the end of the war owing to the storjs being full of Government meat. Notwithstanding the difficulties which the frozen meat industry had to face at the present time, Mr. Quin said he was pleased to state that the outlook for the more distant future was excellent-. The return of peace, which he hoped would not long be delayed, would bring with it an unprecedented demand for foodstuffs and primary products, and it was the duty of the people of New Zealand to see that this demand was met to the fullest extent. No one would assert that any part of the Dominion was producing all that it was capable of growing, and it rested with the Government and the people to see that a vigorous policy of increased production was carried on in the future. It was only by this means that they would be able to bear their share of the cost of the war without suffering and hardship, which must inevitably follow such a disastrous period in the world's history. In concluding, Mr. Quin stressed the need for providing additional storage, pointing out that the settlers had the bail at their feet and should provide the. money to enable e:otra storage to be built as an insurance. Otherwise they would have to hold their stock over the winter. Bulls and second class cows could be dealt with by tinning, but the loss was too great to permit of sheep being dealt with in this way. The company had the plant and the power, and only wanted the shareholders to take up shares sufficient to enable the directors to obtain a loan of £7ooo from the Government, so as to enable them to build storage for an additional 40,000 carcases, failing which the works would he closed down in January. Some imgiu; say that another remedy was to provide food to carry the cattle over another winter, but the cost of this would be high. He referred to the great prospects of the company, which could cater for the district extending as far as Te Kuiti. He pointed out the advantage they possessed in the harbor. He had not the slightest doubt that when the improvements were carried out liners would regularly call. It had been said that the port would never materialise, but already they had loaded several boats without any hitch. He then moved the adoption of the report. Mr. J. Grant (Okato) secoiuled.

THE DISCUSSION. In veplv to Mr. Hushes, the secretary stated that the last of the pelts had been shipped by the Baden Powell the previous day. The chairman stated that the manures had been sold to the highest tenderer. Shareholders could obtain manure it they wished. The directors would keep in view the manufacturing of manure when capital was available, and there were also several other valuable side lines which would have their attention. Mr. Grant considered the directors were deserving' of the thanks of shareholders. Compared with the price llioy had to pay for their store entile farmers were not receiving a fair pricej'or their meat. Some people considered the farmer should provide cheap meat for the men in towns, but he did not see this, as the farmers had to work 16 hours per day, which the town man did, not. At present their meat was selling at 12.U1 on the Home market, and all they were petting was od. There was hardly pepper and salt, to be made in fattening eatt« just now, and but for his loyalty to the company he would not fatten one hoof. It did not cost- so much to fatten sheep. lu reply to Mr. Hughes the chairman stated that the bulk of the stock had been bought by weight. The holding paddock at Okato had proved a great success.

Mr. McHwen said he could not compliment the directors on having a surplus. There had been no fluctuation in the market save to the extent of a farthing per pound. The company had been formed not to pay dividends hut to enable the producer to get all that was in it. Regarding storage accommodation, he suggested that it might be possible to overdo this. Mr. W. J. Gray thought the directors should endeavor to collect the unpaid calls. If they did not pay up. shareholders should be put out. He considered it was most important that the company should be able to manufacture manure, as the land was getting poorer every year. He hoped the shareholders would put their hands in their pockets to permit of this being carried out. Mr. 0. Colson favored placing the surplus towards the cost of a manure plant instead of paying it in dividends. The chairman said that £2900 out rf £l-2.000 was only a drop in the bucket. The directors deemed it advisable to pay out a dividend in view of the fact that thev wanted additional share capital. Personally he favored placing it to re- | serve. Mr. Colson considered there was not n person interested in the works wiio 'would not gladly forego the dividend in order to enable the works to be made up-to-date. The chairman reiterated that, manure works would be established as soon as capital was available. They might, also have extract of glue, tannin, and other works, all of which would give employment to a number of men. A supplier asked if in the case of a shortage of space the accommodation would be allotted among shareholders in 'proportion to shares held. The chairman said the directors would always endeavor to protect the interests of shareholders. They would not accept stock from non-shareholders. Last year they had refused a fine line of 200 head of cattle on this account, u Mr. W. J.. Gray asked wliat about

shareholders putting non-shareholders' [ stock through the works. The chairman stated this was very [difficult to trace. In reply to Mr. Hughes, the chairman stated that before the opening of the season it was expected that shipping 'space would he available for (100,000 carcases, or at the most optimistic estimate a million carcases. A boat would probably visit New Plymouth next month, but he did not know what it would take from here. He hoped it would lift 30,000 carcases. Mr. Hughes: There is plenty of water here. In replying to Mr. McEwen's remarks, jtlie chairman said that the price of tallow, preserved meats, and pelts not feed, nor was that for hides since last March. They received £2 Is 8d for their meat, and for the first year gave cC2 7s Gd and £2 Ids to producers, and it was the hides, tallow, etc., that made up the dillerence. They had to find a market for these, and it was therefore advisable to allow something to come and go on, Uv giving "i per cent, interest to shareholders lie thought they were coming as near co-operation as possible. He did not like unpaid calls, and every endeavor would be made to get these in, as they were required for construction work, in which they would render invaluable assistance. THE POSITION AND THE OUTLOOK. Mr. W. A. M'Cutehan emphasised the seriousness of the position, and said that though this was a Dominion question, he would like to bring home to every individual farmer the acuteness of the position in regard to the shipping and the need for additional storage. Unless the latter was provided, it meant that four cut of every five head of stoeic would remain in the paddocks. This meant moro than collapse; it meant absolute disaster. There were a million sheep, and a drop of 5s per head meant a loss of £250,000, and a drop of £1 on 350,000 cattle raised the total to £000,000; but this was not all. In a few weens there would be in tiie paddocks 320,000 lambs and 200,000 calves, which would have to be carried through the winter, mid, owing to insufficiency of feed, there would be a heavy mortality, raising the total loss to nearer a million. Something, therefore, had to be done, and I lie quest ion was, what were they going to do? There were nearly IGOO shareholders, and the directors required between £9OOO and £IO,OOO to provide the accommodation. Two shares apiece would raise £1.5,000. The statement, in the report that the demand would be extraordinary when the war came to an end was quite correct, but the question of demand witnout reference to supply did not give sufficient data as to prices. It well not to live in a fool's paradise. It was quite true that flocks and herds were depleted in the Northern Hemisphere, to some extent owing to the requirements of the war. In France, owing to the national foresight o| the people in using to the utmost sea-borne meat, the numbers of the flocks and herds in the country had been well maintained, statistics showing that they were only down 10 per cent. In England, an equally satisfactory state of affairs had been secured, the latest statistics showing a slight increase in all branches. V the United States there had been a substantial increase in all branches.

Mr. M'Cutchan then referred to the meat-packing houses, which, owing to the restrictions of recent legislation, were seeking new fields of operation. Swifts had recently made arrangements witli the Uruguayan Government under which, in consideration of their establishing extensive meat works in the country, they secured a triple concession charter—that was a reduction lu the railway freights, in port dues, and in (lie general taxation of the country. The duration of the charter was for 40 years. Swifts last season made a profit of 42.3 per cent, on a. capital of 20 millions, and they paid 90 millions to stockgrowers for cattle, sheep, and pigs. In Brazil there were over 30 million cattle, and quite \ecently eight meat establishments had commenced operations tnere. The latest (o enter tlie field was Armour 5 .?, who had secured two sites and were building and equipping two towns for their employees. The killing capacity of the larger of these works would be 2500 cattle. 2000 sheep, and 3000 hogs daily. The whole of the Brazilian meat was only 15 days from London—that was, three cargoes could bo carried for every one from New Zealand, jti trie Argentine there had been surprising development. fortunes had been made, and there were more ships on the route than ever before, according to rcent reports. Tt was further announced that there was uneasiness among the meat men in the country on account of the development in South Africa, due to the importation the best stud stock obtainable. A few years back the number of cattle was \ ?<i millions, of poor quality; to-day there were eight million cattle there and of i vastly improved character. A few years J back the meat imported into South Africa was valued at £3,000,000. In 1015 these imports had ceased, and two years later 23.000 tons of meat were exported. He also made reference to the fact that creameries on co-operative lines [had been established, and that the produce was realising prices on the London market second only to Danish. In Madagascar there were 6} million cattle, and the French were now drawing largely on this source of supply. In Nigeria there were 5 million cattle, and a large meat project, was under way there. These figures made them' realise the magnitude of the competition with which they were about to be faced, and emjpliasised (he necessity for perfecting 'their services. They were forced to realise that the farm, the dairy, the | meat factory, and the harbor were linked togetlier, and that under the stress of | this competition transhipment of any section of their produce would be a serious detriment to their progress. Opportunity was a privilege; lost opportunity was one of the most regrettable incidents in life. They had a splendid opportunity that day to do good work fo:* themselves and for the province. Tt was necessary that shareholders should furnish their directors with the capital necessary to face the very se*ious competition which was undoubtedly at hand. Were they to avail themselves of the opportunity, the money found that afternoon would, in the near future, prove to be one of the best investments ever made in the province. Mr. Xing referred to the need for additional share capital being taken up. He staled that, last year they arranged to •borrow +''soo from the Government on the security of special share capital, on which 15s had to be paid on allotment and the balance in five, years, or, for the sake of obtaining a dividend, in 2J years. There were 360 of these shares "still to be taken up, which could not be done in less than lots of 20. They could not go to tlio Govcriuwiit Sot % further loan