WELLINGTON NEWS

Hokitika Guardian, 29 October 1927, Page 1

WELLINGTON NEWS

I ‘li; FFJ)KKATI(>X’S FACTS,

(Special tu “ Guardian

WELLINGTON, Oct. 2G. The I'ecently-formed Dairy Companies’ Pig federation, whose activities apparently cenire in Eeilding, lias issued a statement on the pork export trade. 11l tills it is stated that last year a group of producers in an endeavour to avoid glutting local markets accepted prices for exports considerably lower than those ruling locally for diminished supplies. This year, it is I stated that there is every probability that producers will he compelled to accept values very much below the cost of production. These facts are not alarming. They simply emphasise tinfact that the pig-breeders, like everyone else, have had to submit to the law of supply and demand. Bust season, rather than glut tlic local market, they accepted the low prices for export, and it must lie obvious that if they did not accept the low prices there would have been very little export. Apparently again this season the production will exceed llie local demand, hut ibis is only theoret ieally correct, fer the i-on'sumers can very rightly I urn round and say " it is because your prices are too high that we cannot consume as much pork, bacon and ham as v.c would like to.” Of course, the producers can retort: "Our costs ol protluci ion are high, and we cannot reduce prices.” Thus with costs high and purchasing power low business is restricted, bill the advantage is with tin* consumer, lie is not compelled to buy, hut the producer must sell or give away his products. Under these ciri ii m-laliccs it is up in the producer te make investigation into his own affairs. Is it not possible to cut out waste and needless expense? The Eederntion apparently is mb concerned to effect economies, or with an ordered elfurt to reduce costs, flic/ circular stales plainly that the objective of (lie l-'ederation is to " stabilise prices in New Zealand.” The word " stabilise ’’ is being misused h.v a good many people. There can never In* stable prices in a commodity market, on lb loulrary there must always he iiurtua liens based on supply and demand Some organisations use the word "stabilise " instead of “ exploit," for prices cannot he stabilised except by exploiting consumers. The Pig Breeders’ federation wants a Government subsidy to ensure the exporting producer of a minimum price of say oil per lb for his work. Why should tlie pigman lie paid to develop his business and put it on a profitable basis!- The dairy industry was mil built up that way, and yet there were times when the dairy farmers received poor returns, and there were occasions when they received high returns, and on the average they have made reasonable profits, and the dairy industry rests on a solid foundation. The dole would he harmful and not helpful to the pig industry. And the federation wants the " Paterson 1 ’hiit " applied to the export of pork, hut they ran write that off the slate.

The same tiling was suggested for the beef trade ami was turned down. The imposition of the Paterson plan by legislation would he a legalised swindle, for it would he taking money nut ol tin* pockets of all file consumers ami putting Lite money into the pockets ol a lew . This does not seem to be the way to build tip an industry. None ol our great primary industries, meat freezing and dairying, were built up in this way. What is wrong with the pig industry is that the producers, with perhaps few exceptions, are lint producing the class of pork that would command top prices in the London market. At tin* London Dairy Show last week in the bacon class South Africa secured

first and second and Australia third. New Zealand was unplaced. The pigbreeders have got to face that fact. Offer the consumers a good quality product at a reasonable price and there will he plenty of business done. It is of no use talking about costs of production. that does not interest the consumer, who is conversant only with the limits of his purse.