Too many pigs a problem

Press, 7 July 1977, Page 7

Too many pigs a problem

Wellington reporter

A major concern in the pork industry was production exceeding demand, which . was a reverse of the situation 12 months ago, the Associate-Minis-ter of Agriculture (Mr Bolger) told the pork industry conference in Wellington.

i Last year pig meat had | to be imported, although ! this had been easing as pig numbers were built up. "If we are to be sure of meeting all consumer ! n..Ms for pork and bacon I at all times, we should

I aim for slight over-pro I duction,” he said.

“But production in excess of demand has almost invariably carried with it a reduction in schedule prices.” By this time last year a

procedure for fixing basic minimum prices for pigs had been set. The Pork

Marketing Board had the power to intervene and buy pigs to support basic

minimum prices. The marketing fund built up by the industry over the years was to be used to finance the board’s marketing.

In recent weeks this fund had had to be supplemented by a Govern-ment-guaranteed overdraft to enable the board to continue its buying policy, Mr Bolger said.

Although pork producers might consider the present basic minimum price to be marginal because of cost rises, he said he was sure all oversupply had shown to all pig farmers the benefit of the basic minimum price procedure. The pig kill for the current year was about 10 per cent up on the same period last year, he said.

This was not cause for concern, as some increase had been needed to offset last year’s imports. But Otago and Southland had been well over-supplied. The board had bought the surplus pigs there at a guaranteed price and processed the meat for sale, mainly in Auckland.

Any expansion in pig production meant that either local consumer demand had to be stimulated or that the meat had to be exported, Mr Bolger said. The pork production bureau had been stimulating consumer demand.