Improvement Of Pig Industry Discussed

Press, Volume CVIII, Issue 31596, 6 February 1968, Page 18

Improvement Of Pig Industry Discussed

“If my wife gave me five bob, I would not invest in the pig industry,” commented Mr E. J. Kirkeby, chief technical advisor to the New Zealand Pig Producers’ Council. He was addressing a meeting of more than 80 pig producers in the Fernside Hall on Friday evening on the economics of pig production today, i

Two resolutions, carried at a meeting of pig producers at Ashburton on Thursday evening, were carried without dissent at the Fernside meeting. .They were: That the New Zealand Pig Producers’ Council initiate an investigation into the margin of cost of pig meats from the producer to the consumer. That the New Zealand Pig Producers’ Council approach the Government to request to be empowered to set up a pig meat marketing board. A further motion, moved by Mr A. E. Williams (Kaiapoi) and seconded by Mr I. D. Constable (Flaxton), was carried without dissent. This was to the effect that an approach be made to Federated Farmers to see if its support can be enlisted to support pig producers’ recommendations. Price Discussions

Asked if the pig council had discussed the pig meat industry with members of the trade concerned with retailing, Mr Kirkeby said the trade and the council were on “the best of footing.” “However, when you sell your pig and get your money for it, it’s no longer yours and you can’t demand more from the other fellow.” A lot of the present troubles of low prices for producers wore caused by fluctuating prices, said Mr R. L. Skilling (Lakeside), chairman of the Canterbury Pig Committee, who chaired the meeting. When the price was high, it encouraged more production, and then demand declined. He considered price setting could be in better hands.

‘Violent rise and fall of prices is not only supply and demand, it’s being done on purpose. It’s being manipulated to keep us in our place —New Zealand’s so-called free enterprise,” said Mr G. S. Meyer (Springston), a member of the Canterbury Pig Committee.

Declining Kill Mr Kirkeby said the New Zealand pig kill had declined by 22 per cent during the last two years. Consumption of pig meats two years ago was 351 b a person and was likely to be down to 251 b a person now.

Freezing works were delivering carcases to retailers at 25 cents a pound, and pork was being sold to consumers at from 40 cents a pound, which was a big mark-up, said Mr Skilling. He suggested pig producers should discuss this with retailers and suggest to them that they should reduce the profit margin and sell twice as much to make more.

"Consumption of meat won’t rise with a reduced price, as people eat Only as much as they need," argued Mr R. G. C. Giller (Ohoka). “If the butcher sells more pork then he won’t sell as much beef or mutton.” Reasonable Profit

What the producer had to worry about was obtaining enough from his product to cover the cost of production and to give a reasonable return on his capital investment, regardless of the retail price to consumers, said Mr Kirkeby. It was when he was asked from the floor whether he considered the 18 cents a pound schedule price was fair to producers that Mr Kirkeby made his comment about not investing in the pig industry.

“How far can we interfere with free enterprise?” asked Mr Williams. “It’s no good to the producer or the consumer if prices fluctuate drastically. Interference with free enterprise by control has had good effects. Look at town milk supply and centralisation of cream—you can't tell me we aren’t better off for these. “Something should be done about having pig meat produced under contract —there’s no physical reason why it can’t be done,” he said. Marketing Board “We couldn't be worse off than we are now if we had a pig meat marketing board, but we couldn't back down or we’d really be at the mercy of the butcher,” said Mr Meyers. “We could double the levy to the pig council and use this in an intensive advertising campaign showing pig meats as a quality product. We would then have to supply a quality product. “What has Federated Farmers done for us? We have; been the Cinderella industry long enough. Federated Farmers has been behind the wheatgrowers, and unless they do something for us, I suggest we withhold our subscriptions to add strength to our argument,” he said.

“I think you are being a little unfair to Federated Farmers,” said Mr Wiliams. “You say they have done nothing for us—but have they been asked?” Price Fixing The whole idea of a pig meat marketing board was to set up a price-fixing authority, said the chairman. Buying and selling was effective price control. He asked if the pig council was spending enough on advertising pig meats. “Could this levy money be better spent on promoting the industry? It’s being well spent on research, but it’s possible that the council could advertise more,” he said.

Several speakers were critical of the fact that producers had not been consulted when the “so-called schedule price” was fixed, and of the continued high price far pig meats, although the amount paid to producers had been greatly reduced. “The only way to control prices of pig meats paid out by, and asked for by others is to compete with them through a marketing board,” said Mr Kirkeby.

The Secretary for Maori and Islands Affairs (Mr J. M. McEwen) has been nominated as the New Zealand member of the United Nations trusteeship mission to Papua-New Guinea.—(P.A.)