EXPORT OF MEAT.

Taranaki Daily News, 13 August 1921, Page 7

EXPORT OF MEAT.

TARANAKI INDUSTRY. THE FARMERS' COMPANY. THE ANNUAL MEETING. The annual meeting of the Taranaki Farmers’ Meat Company, Ltd., was held in New Plymouth yesterday, Mr. J. ,T. Quin (chirman of directors) presiding over an attendance of about 150 shareholders. In his address the chairman said: In moving the adoption of the 6th annual report and balance-sheet, I have again to congratulate shareholders on what, under the market conditions prevailing almost throughout the entire season, must, I think, be considered a successful year’s operations. The profit for the year as disclosed by the balance-sheet is £3,049, after providing the sum of £6OOO for depreciation, and £1224 for land and income tax.

Capital.—During the period under review, the paid up capital of the company has increased by the sum of £6384. Calls in arrears, viz., £2278, is still a large sum, but shows a decrease of £386, as compared with last year. Your directors wish once more to urge upon shareholders the necessity of paying calls up promptly. The town of New Plymouth was canvassed in October last, and no less than 1601 new shares were taken up, and I take this opportunity of expressing the thanks of the directors for the loyal support accorded the company by the business people of New Plymouth. Sundry creditors shows at £251,984, being a reduction of £124,118 on last year’s figures. The amount includes overdraft at the Bank of New Zealand, interest accrued thereon, and amounts drawn against unclosed consignments of meat, tallow, pelts and frozen sundries.

The amount reserved for land and income tax, viz., £1224, is considerably less than last year, due, of course, to the fact that the profit is smaller, and the graduated income tax therefore less per cent.

COMPANY’S ASSETS. I will now ask you to turn your attention to the assets side of the bal-ance-sheet. The “fixed” assets, i.e., land, buildings, plast, machinery, etc., shows an increase of £28,534. In explanation of this expenditure, I desire to point out that the works, when operations were commenced some five years ago, were by no means thoroughly equipped for the economical production of the various by-products of a freezing works, and during the year under review an entirely new preserving and can making department has been erected and equipped with up-to-date plant. A new Babcock-Willcox water tube boiler is in course of installation. The freezing plant, as mentioned in my last report, has been considerably increased in capacity, and the tallow and manure departments extended, so that next season the company should be in a position to handle 2000 sheep and 125 heed of cattle per day.

Stock Stores, etc. —This item is smaller than was shown last year by the sum of £183,716. This reduction is, of course, accounted for by reason of the improvement in the shipping position, and by the unfortunate fact that the 1 values of our by-products are by no means what they were twelve months ago. Your directors have gone very carefully into the matter of the values of the stocks, and we believe these are on the safe side. The stores, i.e., manufacturing materials, have, in eases where it was deemed expedient, been written down considerably.

Unclosed consignment. —This item shows an increase compared with last year of £32,596. The cause of such increase is that the company has found it necessary to consign a good proportion of its meat and tallow, and all its pelts, in view of the fact that buyers of the two latter commodities were not operating to nearly the extent they were last year, and with regard to meat it will be remembered that last year all meat automatically became the property of the Imperial Government directly it was slaughtered, and therefore none had to be shipped on consignment. Sundry debtors. — £4.787 is practically the same amount as last year, and represents a number of small amounts, most of which have since been paid, and those that are still outstanding are considered “good.”

COMPANY’S OPERATIONS. Regarding the operations of the company last season, I regret that the killings as a whole snow a considerable decrease, but" 1 venture to express the opinion that the same applies to all freezing companies throughout New Zealand. In the first place, the opening of the season was delayed about four weeks owing to labor disputes, and slaughtering operations ceased earlier in view of the fact that the various markets for the company’s products were in such an unsettled and chaotic state that your directors deemed it advisable to close down the works on the 20th May. Your directors, however, endeavored during the season to assist producing shareholders by taking their stock either on their own account on at a reduced schedule of prices, plus 75 per cent of any profit accruing. We hope to have all the owners’ e account meat shipped within the course of the next two months, and account to growers, both those who put their stock through the works on their own account, and those who sold at the reduced, prices before the end of the year. Whilst on the subject of killings during the past season, I wish to mention that one gratifying feature is the increase in lamb killings of 14,307. The quality, however, has not been altogether satisfactory, only 35 per cent, being graded first quality, and I -wish to take this opportunity of zniproaeing upon growers that if to be able to compete in the open wixh the best quality New ZeaiSoi lamb. it will be necessary to exercise more care in the breeding of lambs. We have recently received a cable from our Lon don representative advising that the grading of all our meat has been quite up to the best New Zealand stanlard, and your directors are determined that not only our meat, but all our products shall earn a name in the various mar ketB ' LABOR QUESTIONS. Labor questions.—lt will be remem bered that when I addressed you last. I mentioned that in February of last year a conference of freezing companies had agreed with employees to concede a bonus of ]0 per cent, on the wages of hourly and weekly workers, and 71 on the earnings of piece workers over and above the rates fixed by the award of AoriL 19L9- _Before the commencement

of the season just ended, a further de* mand was made by employees, and at a conference held towards the end of last year, it was agreed to pay a further bonus of 15 and 12$ per cent, respectively. This additional bonus has, of course, had the effects of increasing the cost of manufacturing our various products to a very material extent, and in view of the lower values ruling for such products—more particularly wool, belts, tallow and hides, and the increased cost of getting our meat to the London market—will, in my opinion, necessitate a mutual adjustment of wages rates. Otherwise the freezing industry will not be in a position to stand the strain. The matter of wages was fully discussed by the associated freezing companies of both the North and South Island in June last, and certain proposals have been placed before the Federation of the Freezing Workers’ Union, and I anticipate that an amicable settlement will be opened without the delay that occurred last year.

THE SHIPPING PROBLEM. Freights.—As you are, of course, aware, .the Imperial Government commandeer on frozen meat ceased on June 30 last year, and it was necessary .for freezing companies to enter into an agreement with shipping companies for freights on frozen meat. After protracted negotiations an agreement was arrived at between the companies and the three shipping companies, namely, Shaw, Savill and Albion Co., New Zealand Shipping Company and the Commonwealtn and Dominion Line. The rates of freight, which cover the season just ended and next season, however, are in my opinion exorbitant compared with pre-war rates, but under the circumstances the freezing companies had no option but to accept. A movement emanating from the Producers’ Association, and strongly supported by the freezing companies—more particularly the farmers’ companies, is on foot to form a fleet of vessels for the carrying of their own produce, and it is sincerely to be hoped, in view of the present high rates of freight, that such movement will be crowned with success. It will require, however, the loyal support of every grower in the Dominion to enable the project to meet with the success it deserves.

.Shipping.—The shipping position, as far as space is concerned, has greatly improved since I addressed you last. There appears to be ample shipping space, both for frozen and general cargo, in sight, and we hope to have the works cleared of all products by November, enabling us to make a clear start for next season. Whilst on this subject, I should like to mention that I am once again pleased to be able to inform you that during the past year our meat, and, in fact, all our products, have been received aboard the various carrying vessels in flrstr-class condition.

Manure Mixtures. —Un my last address, I had the pleasure of informing you that the company had installed a new fertilizer mixing plant, and last year we disposed of about 800 tons of mixtures, and have received most gratifying reports from users in many parts of the province. In view of this, your directors have decided to adhere to the same ingredients for the mixtures for the various crops this year, in spite of the fact that prices have been considerablv reduced.

FUTURE PROSPECTS. Foreign Markets and the' Future.—l had hoped, as foreshadowed in my last address to you, to be able to inform you that foreign markets* had been opened up for the profitable disposal of our produce, but up to date such has not been the case. On the other hand, as you are no doubt aware, large quantities of lamb and mutton, which were shipped to the United States of America, have been transhipped to the United Kingdom, whilst the stocks of Imperial Government beef, which were purchased for disposal on the Continent, were also diverted to the same quarter. These conditions, of course, had a depressing effect <?n the Home market, more particularly with regard to beef. In view of the fact, however, that the matter of the German indemnity has been settled, [ hope that before long the Continental markets will be available to us, not only for frozen meat, but also canned meats, wool and tallow. Without in any way attempting to prophesy, T am hopeful that the ensuing season will be brighter and more profitable to growers than that which has just ended. I do not, however, think for one moment that values of wool, tallow, pelts and hides will soar to the heights they reached during the 1919-20 season, and I would impress upon growers the necessity for exercising due care in their dealings. The high values referred to were false, being created by a purely speculative demand, and large sums of money were lost by these speculative buyers, with the result that during the past year many of them have not been operating, and those that have been were not pre pared to offer the true market value of the various products, this, of course, in an endeavor to retrieve a portion at least of their losses during the previous year. In view of this your directors decided to consign practically all by-pro-ducts, and up to the present time results have fully justified such action. Touching again on the question of manures, the chairman said that during the last season they had received most gratifying reports as to the value of this product. They had therefore decided to put up the Game standard this year, but at a reduction of about £’2 10s. This would not show much profit; but the directorate thought tire move would be in the interests of shareholders. Taxation on companies was briefly touched on, the chairman remarking on the heavy rate levied in this connection. Ke said at present there was a tax of 8/9.| against companies, and this, as could be seen, was penalising the income of the company and not the individual shareholders. It collected a 'levy on the same basis from both small ! and large shareholders. There was a ; movement afoot to have the incidence iof thi«s tax altered. Efforts would be I made to secure an amendment of the Act next session in order to give relief to companies. While well aware that the taxation had to be paid they believed that it should be levied on a fairer basis than that which penalised small shareholders.

THE DISCUSSION. In seconding the ,motion for the adoption of the report, Mr. A. McKeown endorsed the compliment paid by the chairman to the borough of New Plymouth. He said that the works had added considerably more to the value'of the borough. 'Though the town might not receive a direct dividend from the capital invested other benefits accrued from the existence of the industry. K«gardina the pavment of a dividend, Mr. McKeown said that the whole of the procame from the producer. Unior-

tunately as producers they were not strong enough to put up the works and had to get foreign capital which they acknowledged by paying a dividend. He also said he would have liked Uf have seen his consignment of lamb shipped by now, as it had been in the works four months already. The chairman replied that the lamb would be shipped next week. Regarding dividends, he thought it would have been a breach of contract if they had not paid for the use of the capital received, and he would always maintain this attitude.

Mr. W. J. Gray inquired if the company had taken into consideration the matter of grinding Nauru phosphates. The chairman replied that the, company was not in a position to put up a plant, which would cost between £50,000 and .£60,000. They had, however, made arrangements with an Auckland fertiliser company for any supplies required.

' Mr. Colson inquired as to the quantity of benzine purchased by the company, and the chairman replied that the manager had not come prepared for this question. Mr. Colson also desired to know if any benzine was supplied to the staff, and if eo was it at cost price.

The chairman replied that there was no benzine supplied to employees. He assumed that the questions led up to the subject of “joy-riding,” and running about the country. He was of opinion that it was an impossibility to draw a hard and fast line. They would have a buyer whose judgment in one transaction might mean thousands of pounds to the company, and he did not think they could draw the line if he took his car and drove the family to church on Sundays. It was a boomerang which might rebound very suddenly. Instructions had been given to the manager, however, to reduce these expenses at discretion, except for necessary work. The questioner replied that he had seen something which had opened his eyes. There was no business done on Sundays and he believed it was time some line was drawn.

•Speaking with regard to the output of lamb, which, he said, was likely to become a staple product, Mr. D. J. Hughes suggested that with the idea of stimulating interest and keeping up quality, the company might announce at the annual meeting the six highest grades* and the names of the consignees. Mr. M. T. Gray expressed disapproval of this proposal, as the land varied so much. He thought it was altogether wrong to make such comparisons. Mr. Hughes asked if, in view of the accumulation of frozen meat products, had the company approached the French Consul or other foreign representatives with a . view to securing Continental markets.

The chairman replied that there was no permit available to export any raw material to Germany.

Mr. Morton, referring to the manufacture of manures, informed the meeting that the directors had before them the question of reducing the price in view of very strng competition by other sellers of manures. The previous season’s output, which had been sold to farmer shareholders, had been sc sati?factory ’that it was deemed inadvisable to reduce the standard. They had lowered, the price, however, but this would mean a reduction in the company s margin of profit and not in the quality of the article. Last year’s output of SOO tons had all bom disposed of. He did not think that this year the total would be as high.

Several shareholders testified to the good results obtained from the company’s product, and one speaker said the manure was the best he had had since he commenced farming. Mr. J. S. Connett expressed the opinion that other manures sold at much reduced prices could only be marketed profitably by a breaking down process. Answering Mr. Hughes, the chairman said the company had not experienced the slightest trouble in connection with -hipping through the port of New Plymouth.

The motion for the adoption of the report and balance sheet was subsequently carried unanimously.

DIVIDEND OF SIX PER CENT.

A motion was passed declaring a dividend of six per cent, on paid-up capital. In speaking to this motion, Mr. A. Morton said that while la it year a di /idend of 8 per cent, had been paid, the season just passed was an entirely different one for the frozen meat business. Me thought every shareholder cmi’d be congratulated on the way the company *s business had been managed during the year, and on the excellent report and balance sheet.

On the motion of Messrs. W. T. Gray and E. Marfell, the chairman was voted an honorarium of £250 for his services. Appreciative references were made as to the work done by Mr. Quin for the company, his interest in the business, and his valuable practical knowledge. The retiring directors, Messrs. M. Fleming, J. W. H. Martin, A. W. Bridge and S. E. Meredith, were re-elected unopposed. A hearty vote of thanks was passed to the manager and staff for the. loyal way they had served the company throughout the year. In moving the resolution the chairman expressed regret that finances did not permit of the staff being voted a bonus, as was done last year.

Replying, the manager (Mr. 11. B. Gray) assured shareholders that the T.F.M. permanent staff took a very great interest in their work, and had. the interests of the company at heart.

A vote of thanks was also accorded the directorate for their work during the year.

Mr. E. P. Webster was re-appointed auditor.

At a subsequent meeting of directors Mr. Quin was re-elected chairman.