PIG MARKETING PLAN

Hawera Star, Volume LII, 3 September 1932, Page 6

PIG MARKETING PLAN

CO-OPERATIVE ORGANISATION EXTENSION TO TARANAKI SOUTHERN EXECUTIVE FORMED. Pig marketing on a co-operative basis as outlined by Mr N. W. Hastings, of Morrinsville, organiser for the New Zealand Co-operative Pig Marketing Association, was affirmed by a; meeting of South Taranaki farmers in Hawera last evening. A committee was appointed to foster the movement in this district and to arrange further meetings to be addressed by Mr Hastings. There was an excellent attendance despite totally adverse weather conditions and, as representative of the South Taranaki provincial executive of the New Zealand Farmers’ Union, under whose auspices the meeting was convened, Mr D. Wards (Okaiawa.) was elected chairman. “The rearing anej. marketing of pigs is a very important adjunct to our . dairying industry,” said -Mr Wards, “but it has its peculiar problems.” Continuing, he said that New Zealand’s exports of pork would undoubtedly* increase in the years to come, but successful marketing would result only from the closest co-opera-tion.

At the outset of his remarks Mr Hastings said he came to- Hawera at the invitation of several South Taranaki farmers who had observed the remarkable success of the New Zealand Pig Marketing Association’s activities in the Waikato district. The association, like every other institution, had bad its bad years with the- good, l>ut since its complete reorganisation last year there was every prospect of more rapid advancement. Its activities previously were confined to Waikato, but gradual Dominino-wide expansion was taking place. The speaker recalled- the circumstances in which the association was formed, a: number of dairy farmers meeting in November, 1927, and deciding to market their pigs co-operatively. After four years the association was reorganised and a new hoard of directors took office last November. Following upon investigation of the accounts the directors set about exploring every avenue of expenditure with the object of reducing costs. A. saving of 6d a pig on agency charges was effected, bringing down the cost of collection to Is per pig. Previously the average cost of haulage was 3s 4d, but this had been reduced to Is 5d on the 21,000 carcases handled so far this season. Another big saving was in killing and freezing charges, the "Westfield Freezing Company accepting pigs at rates more than 14 per cent lower than the charges of another concern in Auckland. Simultaneously with these negotiations the directors sought new ' export arrangetaneously with these negotiations the directors sought new export arrangements, the result being that the association marketed its products through Empire Dairies Limited, a world-wide organisation which made available a higher rate of advance. The most favourable advance made to suppliers under the old regime was 60 per cent on current market values, hut this year sunpliers received advance payments of 75 per cent of estimated London realisations. Mr Hastings dealt with matters in connection with the campaign among Waikato dairy companies to facilitate administration, and at the same time mentioned that the Taumarunui Dairy Company had established its own pig farm. Pigs fed on the buttermilk which the company previously sold for £ls per annum realised a net profit of £350.

The basis of shareholding was explained, also the three principal conditions of a carcase which might cause it to be condemned. Tn certain instances the Government allowed compensation, but the speaker remarked that the loss through condemnations was exceptionally small, no payment being made for three carcases of a total of 42,000 carcases handled during both seasons. In Taranaki as well as in. the Manawatu district dairy farmers all realised that some form of cooperative marketing organisation was essential. . The time was ripe to place th« pis industry in New Zealand on a sound footing and from the dairy farmers’ point of view the only sound basis was co-operative marketing. It was estimated that 75 per cent, of the pigs raised in this country were consumed locally, so that actually there was ample scope for expansion in our export trade. The New Zealand Pig Marketing Association was the only co-operative meat business in existence to-day and wlmt co-operation had done for butter and cheese it would do for pork. Mr. Hastings discussed at some length, the tactics of opposition proprietary concerns and agreed with the chairman that purchases on scale weights gave buyers a big margin of profit. The association bought on dead cold weight plus head and trotters.

“If we are to increase our pig production in this country let it he pork..’’ said Mr. Hastings. “We could increase our quota twenty-fold because of the foot-and-mouth disease restriction of frozen pork from Denmark.” Continuing, he said, that Denmark exported two bacon pigs for each cow that was.nnlked, while in New Zealand one pig to every three cows was killed. Danish exports of bacon totalled £25,790,000, United States of America, £13.000,000, the Netherlands £5,000,000, Irish Free State £5,000,000, Canada £3,000.000, Sweden £2,000,000 and l New Zealand the very small amount of £406,407. “Our exports to London last year were equal to two days’ supply,” he remarked. “If there is one industry that needs to be fostered it is the breeding of pigs for the porker trade.” Mr. Hastings said he had just completed a tour of the Manawatu district where the farming community was keenly alive to the situation. Promises' to supply pigs during the next 12 months wore signed freely and the indications were that with similar activity in South Taranaki an additional 30,000 -carcases would be available. The contract to supply could apply to portion of one’s output or the ‘whole output over a period of 12 months when it could then bo cancelled. In Denmark the farmers were signed up to supply for seven years. Mr Cl D. Dickie, chairman of the .Patea. Freezing . 00.. Ltd., supported the marketing of on a. co-operative basis.

“In the event of sufficient support being available in this district to market along the lines suggested where would the killing take place?” asked Mr Wards. Mr Hastings: At Patea. It is estimated tentatively that 30.001) carcases' would be put through for export and a very favourable rate could bn agreed upon. Mr Dickie said that if properly organised considerable economies could be effected. Too often mono- was frittered awav needlessly, hut in the case of the Cooperative Pig Market-.

ing Association lie felt that the right .iien were at the head of affairs. In answer to Mr B. Pease, Mr Hastings spent some minutes, explaining why the killing contract had been let to Westfield, a proprietary concern, in preference to a co-operative works. Questioned as to whether the Pa tea Freezing Company, would buv pigs this 1 season, Mr Dickie said that his company would not stand in .the way of co-operative endeavour if the association was making a success of its campaign. Mr Hastings said that when his association linked up with. Westfield an agreement was signed that buying and killing of pigs by the freezing company on its own account would cease. One of the conditions of linking up with Patea would be that the company coulcl not operate in tionMethods of collection were discussed and Mr Hastings said that collecting agents would receive 9d pe.r pig. The same system of payment would operate throughout New Zealand. “How many pigs must you. have guaranteed before operations for the season commence?” asked one breeder. Mr Hastings : Any number, from one upwards. (Laughter.) The chairman pointed out that this was a, matter of -special interest to the Taranaki branch of the Now Zealand Pig Breeders’ Association.

Mr Thomlinson: As a breeder I think the suggestion to join up with Lfip association is excellent. Discussing representation on the. board of directors, Mr Hastings said that eventually wards would be created and each ward would be. entitled to one director. Meanwhile Mr Russell, of Palmerston North, was acting for the whole of the Manawatu, Wanganui and Taranaki districts. He was a supplier in a very big way, sending up to 2000 pigs l in a- year from farms in the Manawatu and Waikato. Advisory committees also would be elected anil agents appointed. If the preliminary arrangements were undertaken Mr Hastings said he would return within the next six weeks and address further meetings. Everyone seemed to he most enthusiastic and the interest of farmers at this- meeting augured well for any future campaign that might he undertaken. In addition to marketing the association conducted a pig recording station and valuable information was issued from time to time in swine husbandry. On a show of hands the meeting almost unanimously supported a resolution in favour of extending the principles of co-operative pig marketing to Smith Taranaki.

The following committee was elected to promote further meetings and to undertake preliminary organisation: Messrs H. Thrush (Hawera), Percy Tong (Okaiawa), D. Wards (Okaiawa), •L Thomlinson ( Hawera), L. R. Pease iMangatoki), J. Owen Jones (Noruianby). C. R. Dickie (Hawera), L. F. Uiijl (Mokoia), O. H. (Washer (Tokaorn), and B. 11. Pease (Mangatoki). Ur Thrush was appointed convenor. Votes of thanks to Mr Hastings for his address, to Mr Wards for presiding and the Farmers’ Union executive for calling the meeting were carried by acclamation. Thanks also were conveyed to Mr A. K. Fy.son for the use of the room.