Farming Notes

Hauraki Plains Gazette, Volume VLI, Issue 3421, 18 December 1935, Page 6

Farming Notes

PRICES FOR PIGS PORKERS AND BACONERS In an interview with representative bf the .Waikato Independent regarding the trend of the pork market, etc., Mr W. A. Phillips, chairman of directors of the New Zealand Co-operative Pig Marketing Association, Ltd., mentioned that contrary to last year’s experience ruling local values had so far this season not reflected any premium on export parity values. Porker values since the beginning of the season have consistently been maintained at higher levels than those for baconers, the marginal difference having shown a gradual increase up till the present, when lightweight pork is commanding an attractive premium on baconer rates. This is in keeping with the relative position on the English market, where, owing mainly to a very substantial drop in imports from the United' States of America and the Argentine, porker values, compared with those for the corresponding period last year, have been very firm, while those for baconers have shown a correspondingly weaker tendency. For the present position, which reveals a lower export value for bacohers than that which obtained at any time last season, one can only account by the lack of control in respect of bacon imports from Denmark and other foreign exporters to the British market, who have apparently been allowed to greatly and consistently exceed their quotas. Recently, as a result of joint representation from English curers and producers the Pig Control Board further reduced Denmark’s bacon quota by 121 per cent. The effect of this has not yet been reflected in any improvement in bacon values on the English market, which are at the lowest point for 12 months. “Being of the opinion that English producers will again press for further relief, either in the form of a further restriction or by means of an import duty, I am inclined to regard it as probable that the present position is of a temporary nature,” Mr Phillips said, “and for this reason time may prove that it would be a mistake for producers who have set out on a policy of turning off their pigs at baconer weights to divert from this for the present price advantage in light porker weights.” Continuing, Mr Phillips said it would appear as sound advice to producers who may after Christmas be inclined to divert from the production of bacon to porker weights, to bear in mind that while it appears likely that export values for pork will remain relatively attractive for

December, January and possibly part of February arrivals, prices are almost certain to ease following this period, and in consequence he is of opinion that they would be well advised, in the event of any change being contemplated, to adopt a middle course.

While from the producers’ point of view in regard to his returns a more consistent export market, as Jo the relative values between porkers and baconers, would tend to facilitate a better organised production, the fact that all countries are today disposing of their surplus pig meats oh the British market makes this almost impossible. It is, nevertheless clear that normally the success of our future expansion in pig production lies in our ability to extend dur exports in baconers and not in porkers. It is therefore to be hoped that our grading standard, and their control, will soon be revised to provide the necessary incentive to producers to gradually improve our present average quality of bacon pigs to meet the standard of the product produced by our foreign competitors to whose trade we must look for an increasing' and more profitable share of Britain’s imports.

Regarding the arrangement made with the British Government last year, which allowed us to ship a maximum of 12,500 tons of bacon pigs for the current year, Mr Phillips stated that this expires at the end of Ihis month, and while we have so far not been advised of any arrangement for next year, he would not be surprised if the whole question of quantitative restriction was dropped in favour of an import levy on all imports of pig products, with preferential treatment for the Dominions. Such a course is being pressed for by English producers, who would enjoy a subsidy to the extent of the levy, and would thus be relieved of the uncertainty of the benefits to be derived by the present restrictive import measures. Asked as to the position of New Zealand’s exports as compared with the previous season, Mr Phillips stated that owing to the late spring, porker killings from October Ist to November 15th showed a drop of about 40,000, whereas those for bacon pigs showed an increase of 3000. His own association’s total killings for the period showed an increase on last year, but as in the case of Dominion killings, its own supply reflected a substantial increase, in the percentage of baconers handled. At the present rate of export killings throughout New Zealand it was possible, undei' favourable autumn weather conditions, that a substantial part of the above-mentioned loss in killings would be overtaken before the season closed.