VEAL EXPORT INDUSTRY

Hawke's Bay Tribune, Volume XXII, Issue 193, 30 July 1932, Page 8

VEAL EXPORT INDUSTRY

LOWER PRICES EXPECTED. HEAVY MARKETING COSTS. According to Mr C. H. Backhouse, general manager of the National Dairy Association, the marketing costs eat up most of the proceeds from the “bobby calf” (boneless veal) industry. Dealing with the prospects for next season, Mr Backhouse said it was regrettable that owing to the prevailing economic conditions, the outlook was not by any means bright, and certainly last season’s prices would not be realised. Calfskins were to-day practically unsaleable. They could not be economically treated and marketed at the low values offered by overseas tanners. This applied to a greater extent to farm calfskins, and if any improved values were to be realised they would hold only for freezer quality skins.

FARMERS’ SHARE ONLY £20,000. One important matter receiving attention, Mr Backhouse stated, was the very high costs involved in the handling of the calf from the farm gate to London. It was astonishing to find that two-thirds of the value of the calf was eaten up by handling charges, leaving the producer one-third. Last season the federation handled 195,539 calves, and no less than £60452 out of a total sum of £81,352 was represented by cartage and railage, freezing charges, railage to f.0.b., and ocean freight. This meant that the farmers’ share amounted to £20,000.

It was safe to estimate that practically the whole of the £60,452 was represented by actual labour in operating the industry, which clearly showed that apart from the return to producers, this new industry was greatly assisting the Dominion in the way of providing employment for freezing, transport and other markets. It was apparent, however, that these handling costs would have to be reduced to enable the producer to obtain a resonable return. To this end strong representations had been made to the Government and freezing works. It cannot be too strongly emphasised, concluded Mr Backhouse, that this is a time for farmers to co-operate. Values will be substantially lower than in the past, thus making it necessary for farmers to market by co-operative effort, designed to eliminate waste and provide the market with a standardised article.

VELLS FOR RENNET-MAKING. It was pointed out by Mr Backhouse that the New Zealand Co-operative Rennet Company at Eltham was relying solely on obtaining supplies of New Zealand veils for use in rennet manufacture. The boneless veal industry, therefore, safeguarded the New Zealand cheese industry in respect to future rennet supplies at a most economical rate. If the New Zealand Rennet Company were forced to import veils, as was the case a few years ago, the position would not be at all satisfactory or secure from the cheese industry point of view.