MARKETING OF PIGS

Manawatu Standard, Volume LII, Issue 257, 29 September 1932, Page 5

MARKETING OF PIGS

CO-OPERATION IN MANAWATU. SUPPORT FROM SHANNON. Stabilisation of the pig industry on the lines of the scheme being advanced by the New Zealand Co-operative Pig Marketing Association was both explained and advocated at a meeting in Shannon, last evening, by Mr T. E. Roach, of Hamilton, a director of the association, which is extending its activities to the Manawatu district after launching a similar movement in Taranaki last week, in order to link up three large producing districts into one efficient co-operative selling organisation. Mr S. W. Barber presided over a large attendance. The chairman explained that at the annual meeting of the Shannon Dairy Company a resolution had been passed confirming the advisability of linking up with the association.

Mr \V. S. Carter, who has been elected a director to represent the Manawatu, stated that all would agree that the raising of pigs was an integral part of dairying and a large subsidiary source of the farmers’ principal income. GROWTH OF ORGANISATION. Outlining the extent of the organisation and the reasons for supporting it, Mr Roach said it was a national scheme for the marketing of pigs on co-operative lines, with the object of realising a price which would return an economic value to the farmer. Pig marketing principles had really originated in the It an aw at u, but the movement had come into existence and received its full impetus in the north. A system of monthly pooling for export, with the net returns paid to the farmers, had been in operation for four years until 1931, but the scheme was not pushed extensively for expansion. However, in the 1930-31 season pigs were paid for at the rate! of 4fd to od up to December, and that period showed a loss of £9OOO owing to a decline in prices. The balance of the season’s pigs were put into one pool, which showed a profit of £7OOO. The business at that period had been pioneered as the first co-operative marketing of meat, and the policies in operation had been formjulated on the basis of relatively prosperous years. Following an investigation changes were instituted and the lessons of cooperation in the dairy industry were absorbed. Yearly pooling with dairy companies was then introduced and Empire Dairies took over the marketing. The system of collecting and agencies •was thoroughly overhauled to increase the efficiency of control,! and very effective reorganisation todk place. From May to December, 1931 ,i 900 pigs had been received, but fromj December to the May following the record number of 20,800 were handled, {indicating the strength of the confidence behind the movement. The business 'had continued to grow, and in the same district, from May last to date, five times as many pigs had been handled as in any corresponding period previously. Meanwhile, the scope of operations had been extended to Gisborne aijd Taranaki.

VALUE OF INDUSTRY. The organisation wasi not antagonistic to the bacon companies. Seventysix per cent, of the pigs were consumed in New Zealand and should give a net return of 4£d to 5d per lb. to the farmer. Pigs exported would have to meet the iruling market values. The marketing scheme would obviate the uncertainty of returns. Scale buying bad practically ceased in the Waikato and the hook weights system had been substituted. Denmark was a ' coiintry the same size as the Auckland province and exported pork valued at £20,000,000, compared with New Zealand’s £250,-

000, although the dairy produce exports were practically the same. Banks in ' Denmark had financed against supply agreements. In icxDenmark killed 3a,000 pigs, and in 1890 exported 127,000 carcases, but in 1930 the number had grown to 5,750,000. Last year the association handled 23,000 New Zealand pigs, compared with Denmark's big figures. Three week's activities in the Waikato this season had resulted in 16,000 pigs being guaranteed for supply, and on Tuesday night 600 had been guaranteed at Opiki, near Palmerston North. Mr W. S. Carter stressed the incalculable advantages of supporting the organisation. He said one farmer had guaranteed 300 pigs this season, and had already forwarded 70. Mr L. L. Lovelock, organiser for the Manawatu district, said very satisfactory, arrangements had" been made for the transport of pigs to stations and for their trucking at a charge of Is per pig. No insurance was payable by the farmers as the association before* that responsibility, which had cost only 1 2-3 d per pig last season. The Government paid 2d per lb. compensation for x»gs condemned under the schedule of diseases. Only four very minor classes of pigs condemned were not paid for in compensation, and the percentage of these was infinitesimal. KILLING ARRANGEMENTS. The formation of a district committee to supervise the collection and handling arrangements was urged by Mr Roach, who said the service would be cheap and convenient, and its efficiency would depend to some extent upon the enterprise of tire farmers themselves. Nothing was charged from the rail to the works, and every penny saved went back to the producer.

Arrangements had been made, staled Mr Carter, to truck to Patea for killing any pigs which were ready. The matter of killing locally was being investigated, but had not been finalised, although it appeared that advantage would accrue from having one killing centre. Freights on live pigs were cheaper than those on dead carcases. There was no organisation in the North Island collecting pigs as cheaply as the association, whose overhead costs were very low. It was felt that the prospects for export were quite good, and it seemed quite likely that bacon as well as pork could be exported this year. The association handled all classes of pigs and the collecting arrangements would leave nothing to be desired. There would be many more pigs produced this year, and a complete selling organisation should be available. It was to be followed out on the same lines as the co-operative dairy companies. Not so much notice should be taken of the advance; it was the final payments which counted. The success of the association meant progressive increases in exports and the natural consequence of its operations would be to raise the prices to pork and bacon producers, but farmers must not succumb to increased advance rates by other interests if they were to maintain the efficiency of their organisation. There was an assured market in England for New Zealand pork. Replying to questions, Mr Roach said votin' l power was based on the shareholding of the supplier, 5001 b. supply of pork being equivalent to one £1 share. There would be a universal system of payment. BASIS OF ADVANCES.

Mr Carter said the movement was one of the finest the farmers could support. He had been associated with it for years in the Waikato. It was explained by Mr Roach that the English pork period of consumption started in September and finished in March. Prices were now at their lowest ebb, and were no criterion of the future. Advances were based on ruling export prices and the best return

was received by farmers from the 60-80 lbs class. There was a drop of id for the 80-1001bs class, and a further l-8d in the 100-1201bs class, after which the baconer class (120-1501bs) was reached. Guarantees of supply were being secured to combat the temptation to farmers to accept the bait of increased prices. Continuity and permanence of supply enabled very favourable export contracts to bo made. The top weight for baooners was 1801bs and from 150 to 1801bs was classed at id per lb lower than for best baconers. Over ISOlbs was classed as a chopper. Pigs which did not have a film of fat across the kidneys or which had blemished carcases were classed secondgrade, and on this basis there was only 6.7 per cent, of these pigs last year. It was hoped this year to pay a bonus of l-16d j>er lb on shareholding supply. Tho object of the shareholding was to build up a capital reserve of £BOOO within four years. Meanwhile, the advance rate would be 75 per cent, of the market value. Shareholding was not compulsory, but was most advantageous. The supply agreement was outlined by Mr Roach, who pointed out its safeguarding classes. It was to be for a minimum period of one year, he said, to. be terminated by notice in writing at any time before the following year. He stated that supply was being signed up fast, some 3000 pigs having been guaranteed last week in the Bay of Plenty. It was hoped to reach a total of 60,000 this season, although only 20,000 were required for the scheme to go ahead as planned. The bulk of the payments over and above advances was paid in August of each year as an interim or final bonus. The meeting elected a local committee as follows to deal with pig marketing in the Shannon and Moutoa districts:—Messrs S. Barber (convener), W. S. Carter, C. H. Speirs, W. Moynihan, \V. Lee, A. Prier. Pirovano and Bowler, junr. . Guarantees were immediately signed by those at the meeting for the supply of about 600 pigs. Messrs Roach, Carter and the chairman were accorded hearty votes of thanks.