FARMERS’ COMPANY

Manawatu Standard, Volume XLVII, Issue 6, 4 December 1926, Page 10

FARMERS’ COMPANY

SHAREHOLDERS’ ANNUAL MEETING. REVIEW OF PAST YEAR. Tlie annual of the New Zealand Farmers’ /Co-operative-dis-tributing Coy., Ltd., ftt Feilding yesterday, Mr J. St.; ■ of directors, presiding. ' /’4'ti'V \ Addressing the meeting, Mr Bryce stated inter alia: “In my review last year I ventured the opinion that our dairy produce exports for the coming season would be adversely affeoted by the unfavourable climatic conditions, and the final figures for 1925-26 have justified my prediction. The following are the comparative totals for the past two seasons: Butter, 1924-25 7i,063 tons, 1925-26 61,195 tons; cheese, 1924-25 72,016 tons, 1925-26 71,682 tons. Whilst the decline in cheese is only 334 tons, the export of butter is less by nearly IQ,OOO tons, a serious matter for our dairy farmers and {or the country generally. The prospects [or the coming season are not at all reassuring, but it is hoped that, with the termination of the coal strike in the Homeland, the accumulated stocks there will now be absorbed more rapidly. Undoubtedly at the present time those engaged in dairy farming are facing conditions which call for the exertion of extreme care and economy in every direction. MEAT TRADE. “Similarly to the previous year, the earlier prioes for our live stock were not maintained as the season advanced. Prime woolly lambs opened in the province at 9£d per pound and wethers at 6Jd. During February and March fhese prices declined by about Jd per pound, but slightly recovered towards the end of the season. Beef has followed the same course, due in large measure to the continuation of the meat war at Home and on the Continent between leading British and American packing. interests operating in the Argentine. Commenting on this conflict, the Duily Mail states thqt the losses are probably running - into £10,000,000, and that for the time being the British housewife is getting cheap beef. The figures furnished by the Meat Board show that our exports of frozen meat front November 1, 1925 to October 15, 1926, were as follow: Lambs, 5,052,351 carcases; mutton, 2,268,262 carcases; beef, 376,965 quarters —all considerable increases over 1925. It seems unlikely that the coming season will find values for lamb and mutton a 3 high as last year, but for beef and pork a better demand is anticipated. The slaughtermen’s strike, coming at a time when the freezing industry in the Dominion is facing extremo difficulties, must reflect upon our market, and it is to be regretted that the industrial trouble has been forced upon us when one and all require to pull together to re*establish our country’s finances. It is pleasing to note a further increase in our sheep returns, the total at April 30 being 24,904,993, a 3 against 24,547,955 for last year, an increase of over 350,000 sheep. WOOL MARKETS. “The New Zealand wool sales continue, and rightly so, to increase in favour, and the past season records 491,582 bales sold at the Dominion ' auctions as against 462,795 bales for the previous year—an increase of 28,787 bales. Although the opening prices at the November sale were not maintained throughout the season, nevertheless from December onwards values remained steady, indicating that buyers were not compelled by financial reasons to sacrifice their holdings. The. Dominion wool sales held so far this season have shown opening prices very little changed from those ruling during the 1925-26 year, and while not so high as some of us would no doubt wish, they are probably better than we had a right to expect. When one considers the lengthy coal dispute in the Mother Country it is really astonishing that wool should open at such satisfactory prices, tor after all Bradford is the centre'of the world’s wool trade, and it is to Bradford we look for our chief market. The manulacturers in that centre of the world’s textile trade have, we are told, during the strike period, paid as much as six times pre-war value for coal and, apart from that, there is the diminished spending power of the masses and the general stagnation of the trade that must result from such a conflict. “Now, as to the future, it is not, of course, wise to attempt to forecast the probable trend of the market during the coming season, but I do think that we will, at the conclusion of the sales, be able to congratulate ourselves upon fair markets; beyond that I will not go. We may see prices even a little better than those ruling at the earlijgr sales, but even if wo do not, I am of opinion that we will not be compelled at any stage this year to accept what can be termed low values for our wool. With the sales held so far this season there is this encouraging feature: That competition has been well spread and fairly general, • Bradford, American and Continental buyers having all been in the market; and, while we have all these using countries competing we need not, I think, fear much in the nature of a set-back. The French so far have operated sparingly owing to the exchange going againsc them, but all things considered, as far as one can see ahead, the future points to firm markets with prices much the same as ruled during the major portion of last season. DOMINION’S TRADE. “In reviewing the Dominion’s trade for the year ended September 30, we find our total exports amount to £48,406,925, as against imports £51,593,818, leaving an .adverse balance of £3,186,893. The geiferal decline in the value of our products, particularly wool, is largely responsible for this debit balance, which, by the way, is only the fourth time in the last 21 years that an adverse balance has been revealed. Compared with last year, which showed an excess of exports ot £5,049,627, we are back by £8,236,520, accounted for by a decrease in the value of our exports of about £7,000,000, and an increase of about £1,000,000 in our imports.. Whilst, as I have said, the drop in values of our staple products has accounted in large measure for this startling discrepancy, nevertheless the .figures furnish food for earnest reflection. Britain continues to rank as our best customer, taking about 85 per cent of our total exports, so once again would I emphasise the call for us to reciprocate by remembering the slogan, “Buy British bloods.” Considering the heavy tariff restrictions imposed by the U.S.A. upon all our products, it is time the producers of our Dominion realised that the only logical and sensible course for them to adopt is to give their trade to the country which protects us and encourages and supports our primary industries. Let us therefore be Loyal to Britain and to the Empire. FINANCE AND RURAL CREDITS. “The tightness of the financial market is being felt by those on the land, but whilst every settler and resident in New Zealand is at present being called upon to restrict expenditure to the utmost degree, one cannot fail to notice the high figures of public expenditure. Further, the numerical growth in the public service list must entail increased taxation; whilst the continued compulsory retirement of still efficient and valuable officials on superannuation cannot fail to add unnecessarily to the State expenditure. The proposed rural credits scheme and the Bank of New Zealand amortisation system for farm mortgages are welcomed as a possible channel for the provision of cheaper money lor settlers. • “Tho balance-sheet of the company discloses a remarkable consolidation of its finances, the comparative figures of liabilities and assets (excluding share capital) for 1923 and 1926 being as follow: 1923, liabilities C]2o 017 assets £192,283; 1926, liabilities £73 439,’assets £176,542, giving an increase in the surplus of assets over liabilities of £3O 937. After allowing for depreciation ox properties and making substantial provisions for depreciation ot plant and furmturo and for the bad and doubtlul debts, the profit and loss account shows a net return of £2524 12s 6d.” ' The chairman then formally moved tile adoption of the report and balance-sheet. Mr J G. C’obbo seconded the motion. Considering the difficult times, he considered that the net profit was quite satisfactory, fc.

and he noted with pleasure how the business of the company was now being conducted according to sound business methods. Whilst agreeing with the chairman that tho prospects for the coining season were not too encouraging, he reminded the shareholders of the splendid resources which the Dominion possessed to assist it in making good recovery. He was pleased, as ono closely associated with the freezing industry, to intimate that the slaughtermen’s strike was practically over. The thanks of the producers were due to those members of the farming community who had come to the rescue of the freezing company during tlie present threatened troublo, and they had all done excellent work. The report and balance-sheet wero unanimously adopted. GENERAL. The chairman announced that tho election of directors had resulted in the return of Messrs Alec Stuart, E. Eagle and G. L. Marshall. He expressed the board’s thanks to the retiring director, Mr O. McEiroy, who had served the board for many years during its most strenuous periods. Mr McKlroy congratulated Mr Stuart on his election, and- referred to the difficult work of the board during those times when the company had faced very trying conditions.- On the motion of Mr Kempton (Carterton), seconded by Mr A. Campbell (Podding), the shareholders accorded a hearty vote of thanks to Mr McElroy for his past services. Mr Stuart, in returning thinks for his election, said that he hoped to induce better combination amongst farmers for the support of their own company, thus ultimately assisting in reducing prices and commission to shareholders. On the motion of .Mr Kempton, seconded by Mr G. L. Marshall (Feilding), Mr S. E. Lambert was re-elected auditor to the company at the same remuneration as last year. Mr F. C. Wilson, of Marton, was re-elected shareholders’ scrutineer. A vote of thanks was accorded the board of directors for their services during the past year. Tlie chairman formally' moved special resolutions providing for the reduction of tho nominal value of the company’s shares by 6s in the £l. This, he explained, would relieve the directors of the long-standing adverse balanco in the profit and loss account and hasten the establishment of the business upon a dividend-paying basis. Ho read the auditor’s report concurring with the proposal and asked the sliareholuers to give the resolution their support. Mr W. G. Fry (Tedding), in seconding the motion, expressed pleasure at the smillness of the proposed reduction. Many trading concerns hud found it necessary to dig deeply into their share capital, and the company had been much more tortunate. ft was mentioned by the Feilding manager tor tho Public Trustee that tlie Public Trust Department’s financial adviser, acting for a number of shareholders’ estates, strongly recommended the adoption of tho proposals. On the motion being put to the meeting it was declared unanimously carried.' The chairman moved a vote of thanks to the stall', whose high efficiency during tho past year had been much appreciated by tlie board of directors. This was carried by acclamation. At a mcetifig of directors held subsequent to the annual meeting Mr Bryce was reelected chairman for the ensuing year.