PORK AND BACON.

Auckland Star, Volume LX, Issue 233, 2 October 1929, Page 4

PORK AND BACON.

EXPORTS TO AUSTRALIA. AUSTRALIAN FARMERS PROTEST. WANT INCREASED DUTY. (From Our Special Representative.) SYDNEY, September 27. There is a move on the part of Australian farmers to have a higher duty imposed on imported hams, bacon and pork, and if their desire is put into effect, it will have a very prejudicial effect on Dominion producers, who ship large quantities to this country. The application is being made by the Primary Producers' Union, the president of which (Mr. Patrick Grant) made out a seemingly strong ease to the Tariff Board. The duty now is: Pork, 10 per cent; bacon and hams, 2d lb (about 15 per cent); lard, Id lb (about 10 or 12 per cent). It was urged that a duty of 6d lb on bacons and hams should be imposed, and that the price of these goods to the consumer should be raised 3d lb above the cost of importing. With that the consumer will differ, for the retail price of bacon is- now from 1/6 to 1/9 lb for rashers, pork is 1/ lb, and ham commeiisurately dearer. The raising of the price by 3d lb, the P.P.U. contends, would have the effect of keeping out imports when supplies were available within the Commonwealth, and one effect of the duty would be to encourage the production of a better class of pig in Australia, and in greater numbers. The raising of duties on butter was resulting in better production through herd tests, and similar results might be expected in the pig industry. It appeared from investigation, ran the case of the P.P.U., that the average cost of producing pork in Australia was 7.9 d per lb, while the returns on the sale of pigs was only from 6.2 d to 6.7 d per lb, equal to an average of 6.4 d lb. Pig raising on dairy farms was not profitable, except that it used up by-products that it would be difficult otherwise to dispose of. ,

N.Z.'s Cheaper Production. It was stated to the board "that some New Zealand bacon was put on the market as New South Wales or Victorian, and that pork from the Dominion was often made into bacon here. The better quality of hams and bacons from New Zealand were equal to those produced here; but it was claimed that the average qualities were not up to Australian standard. Production in New Zealand was cheaper, where, on account of the climate, pigs were grazed more largely than in Australia. Australia's export to the East was profitable and worth encouraging, because the export «>sts there were not so high as to the United Kingdom, where the products came into competition with those of New Zealand.

The chairman told the P.P.U. representatives that he thought the union was asking the people of Australia to bear a very heavy impost—3d lb—to permit of export overseas. The question was whether the consumer could carry the suggested burden. It was stated by Mr. G. W. Gordon, a North Coast farmer, and chairman of the Australian-Pig Council, that if there was an "adequate" duty, production would be increased fourfold. ' But he thought that an increase of Id lb would be sufficient for the purpose. He added that about 75 per cent of N.S;W. bacon was made on the co-operative principle—but the other 25 per cent" could break the market by underselling.

"A Dumping-Ground." The representative of the Queensland Council of Agriculture told the board that New Zealand exporters were obviously taking full advantage of the '.'low duty" of 10 per cent on pork to "dump" portion of their surplus- on the Commonwealth. The New Zealand duty was double that of the Commonwealth, and the Dominion Government subsidised exports to the United Kingdom by %d a lb. The cost of production on the farm was 9d in Queensland, and that price was not secured for the product. It was established by Mr. A. A. Watson, director, of the N.S.W. Marketing.Bureau, that practically the whole of the bacon and hams imported into Australia came from New Zealand, the f.o.b. price being 1/3 to 1/3% lb.- Landed costs into store in Australia were 1/5 to 1/6% lb, plus 2d lb duty (New Zealand preferential rate), and %d covering freight, wharfage and.handling charges, i The Customs Department grouped bacon, and ham as one item, but it was understood from inquiries made in the trade that hams constituted the greater part of this item. Current wholesale and retail prices for New Zealand bacon and hams could not be quoted. It was believed that the principal imports of these commodities were made during the period Christmas inquiries were being provided for, and the prices then conformed substantially with the prices charged for Australian hams and bacon.

The Tariff Board is now considering there representations; but it is unlikely that it will accede to the excessive demand for an additional 3d lb. But even Id lb would have a marked effect against New Zealand exporters. It is probable that any alteration in the tariff would be made effective before the rush' "of Christmas orders.