RATIONALISATION SCHEME

Press, Volume LXXVIII, Issue 23749, 22 September 1942, Page 6

RATIONALISATION SCHEME

PRODUCERS’ OPINIONS DIFFER Conflicting opinions on aspects of the proposed scheme for rationalising egg supplies in the Christchurch marketing area (which, broadly speaking, would divert all eggs through organised channels of established depots and the Central Egg Floor, Ltd.) have been expressed by producers. In general, the scheme (announced in "The Press” recently) is favoured by the larger producers and is criticised by the smaller ones.

Entire agreement with the scheme was expressed by Mr J. Liggins, Burwood, the largest poultry farmer in New Zealand, whose sales are more than 1,000,000 eggs yearly. He believed that most large commercial producers would endorse his opinions. Leading poultrymen in general, he said, had been trying for years to achieve true co-opera-tion and have all eggs put through one floor. Actually the Government had done in one stroke what these producers had been trying to effect for years. These commercial producers had been putting eggs through the organised channels and assisting with export, “carrying the baby” for others who had supplied stores or shops directly or privately. The new scheme, he said, would mean orderly marketing facilitating distribution, would guarantee the grade of egg received by the consumer, and would spread the responsibility for military, export, and other supplies to all producers. The scheme would put the industry on a proper footing and ultimately all poultrymen would benefit. Some consumers, he said, might think that producers wanted an unreasonable price and that the scheme was designed to that end, but he would emphasise that this was not the case and that producers wanted only reasonable compensation for their work.

Mr A. Fazackerley, probably the Dominion’s second biggest producer, said that the producers’ idea had been to obtain producer-control of such a scheme, whereas the present floor was an amalgamation of agents, but he agreed that the scheme would in the long run be beneficial to all producers, big and small, though some of the smaller producers were dubious about it. He was not personally interested in the Christchurch scheme, however, as his eggs were sent direct to Wellington.

Substantially agreeing with the opinions expressed by Mr Liggins, Mr W, E. Green, of Green Brothers, whose production was described as fairly big, added that though only a war measure the scheme was a distinct improvement on the old system. Objections Voiced

Objection to the scheme was expressed by one poultry farmer who gave his production -last year as 500,000 eggs, and by a number of smaller producers. Describing the commission required by the central floor as “down-

right robbery,” the poultry farmer (who would not allow his name to be published) said that at a recent meeting with Mr McConnon (egg section officer) he was certain that 95 per cent, of the men present were smaller producers, supplying privately, and opposed to the scheme. These men, he said, had by their own enterprise found a direct market for their eggs and would object to having to pay to a commercial floor a commission of 7J per cent, on all eggs supplied. He, with most others, would favour the Government’s handling such a floor, with any profit to go back proportionately to producers. While the scheme and the commission to be paid would not affect the large commercial producers they would seriously affect smaller men, and he had already been told that numbers had decided to abandon egg production.

One of the smaller producers said that he had built up a business supplying shops and boarding houses. He would now have to pay £3 10s a week in commission, which would absorb the greater part of the profits from egg sales. Like many others he would not bother with egg production in future, and where he normally operated 1200 to 1500 pullets he was now down to about 100 and would in future concentrate on hatching and other avenues. There were too many good jobs in town to make it worth while for him to spend time on egg production. Ho would, however, have been in favour of producer-control v/ith profits going back to the producers. Fixation of Prices Approached by “The Press,” Mr J. W. McConnon, officer in charge of the egg marketing section of the Internal Marketing Division, said that egg prices would be fixed by the division, and that the pool system was not intended to show profit or loss, the aim being to meet consumer requirements and give the producer the best possible price. If there did happen to be a profit, it would go back to the producer. The central floor would receive only the 7J per cent, commission it charged. Mr C. Ferguson, chairman of directors of the Central Egg Floor, Ltd., said that the commission charged was the minimum practicable to meet costs. The floor already had 1000 suppliers, including nearly all those who supplied the four previously-licensed agencies and quite a number of country suppliers. There had been some delay in putting the floor in working order, he said in answer to questions raised by some suppliers, but in future cheques would be paid out fortnightly.