BACON INDUSTRY

Dominion, Volume 19, Issue 121, 16 February 1926, Page 10

BACON INDUSTRY

SUPPLIES FOR OVERSEAS MARKET FARMERS’ CO-OPERATION NECESSARY WILL COMPANIES ASSIST? There is a keen demand for first-grade pigs in the Old Country, and it would appear that the time is not far distant when farmers throughout the Dominion will combine in a big effort to establish an export trade in tho bacon industry. Irregular Supplies. A representative of a prominent meat importing company in London was recently in New Zealand, and asked for a supply of 2000 carcasses of first-grade baconcrs per month for a period of twelve months. The company approached was quite prepared to sujiply 2000 carcasces a month at thks time of year, but cculd not give a guarantee as to a similar supply tor the period mentioned. Thus, for tho lack of an assurance of continuity of supply, negotiations fell through. This defect has led to failure in any effort to organise an export trade in the past, and until exporters in the Dominion can definitely assure a continuous supply of baconers any attempt to export on a large scale is unlikely to succeed. Who Gets the Difference? Tho farmer in New Zealand notices that first-grade bacon is fetching, wholesale, 9d. per lb. c.i.f. in London at tho present time, and on the assumption that 2Jd. per lb. covers all charges of export, including killing, curing, dressing, and other expenses at this end, considers that he should receive at least 6Jd. per lb., instead of sd. or SJ-d., or perhaps 6d. per lb In conversation with one well versed .n the bacon industry, a represeniative of The Dominion was given the views of both parties interested in the export business. “At first sight the farmer’s contention may seem correct, ’ he said, “but the average man on the land does not with the difficulties of the exporter or wholesaler, such as abattoir organisation, shipping trouble, cool storage, and many other hindrances, all of which mean delay in export and shrinkage of the carcasses, with a considerable decrease in weight. From the farmer’s point of view there is something to be said in favour of his assertion that there is too great a disparity between tho price paid to him and that at which the p-oduct is sold on the market, especially when one considers the large quantity 0/ pigs handled by the different companies. These concerns make practical use of the various by-products, and thus there is little, waste material. Tho cost of 21-d. per lb. has been based on a small number of animals, and could perhaps be slightly lessened were there a large quantity of swine to be handled, such as would be the case if a permanent export trade were established. “It is common knowledge amongst those on the land '.hat the companies which dispose of bacon overseas take a certain amount of' risk as regards fluctuations in the market prices,” concluded ' The Dominion’s informant, "but farmers do not consider that they should bear the charges in this respect, as in all business of the kind there is that element of speculation.” Differences Hinder Progress. Whilst the farmer demands a larger reward for his labours, and the companies stand their ground, the prospects of setting up the desired export trade remain remote, and as a result New Zealand has made practically no progress in Hki matter of accomplishing what is stated would be one of the most profitable ventures if pursued on proper lines. Cut-throat competition amongst the various companies and lack of co-opcration in the ranks of those who rear pigs, are declared to be just as rife as ever, the former rivalry occupying much of the average farmer’s attention, and discouraging him in any desire he may have to see tho industry flourish. Supplying Local Demands. Quite recently one farmer was stated to have remarked. “Well, if we have to give our baconers away we will do so to our own folk.” Bis remark about giving them away was obviously a reference to the low price received. This may be the viewpoint of only a small section of the farming community, but it seems that there is an opinion prevalent amongst the majority of those who roar pigs that the local trade comes first. At the present time, after supplying this there is little stuff left for export, but the authority in the industry alreei; «ss;lai??2d that |

among other sections of farmers (here existed, the idea that the export trade camo first and local supply second, as in the case of frozen meat. “However,” he suggested, “perhaps the pig breeders have placed the immediate requirements of the Dominion in the foreground to tho detriment of its future, lint no doubt such views would be altered were the desired prices forthcoming.” There is amongst the farmers who are at all interested in pig rearing and the great possibilities of a big overseas market a quiet agitation at the present time in regard to bacon prices, and as a result it is thought quite probable that in the near future there may be some development in the industry. It is stated that if the farmer receives what he considers a satisfactory reward for his labours there will be ’.mple supplies to meet requirements. If such supplies were available it is thought that the increased business would enable the bacon companies to cut down handling charges. The question, it in stated, resolves itself into “Who is going to take the initial step? Will the farmer increase his supplies on the chance of a greater reward or will the companies pay a higher price to encourage more extonlivo production?”.