MARKET FOR CALVES

Northern Advocate, 4 July 1928, Page 7

MARKET FOR CALVES

CO-OPERATION PROPOSAL

PROFITABLE SIDE-LINE A meeting of representatives from dairy companies throughout the disi trict was held in the Madeira Hall yesterday, when Messrs McFarlane and Masters, of the National Dairy Association Executive, explained proposals for the co-operative marketing of calves. Mr E. S. Tremaine, of Ruatangata, who was elected chairman, said that the scheme was fully explained at the National Dairy Association’s conference at Palmerston North. It had been shown that its adoption meant that farmers might obtain 91- for their calves, instead of 4/- or 5/- as at present.

Mr Masters stated that the meeting had been convened as an outcome of a remit to the N.D.A. Conference, which had led to full discussion and preparation of a scheme for. selling calves on a co-operative basis, which scheme he wished to place before the meeting. The idea was that all calves should be sent in by dairymen to the freezing works and marketed, instead of continuing the practice of killing them on the farms and selling skins from there. The Auckland Farmers’ Freezing Company had agreed to open the works at Moerewa under certain conditions.

Speaking in support of the proposed development of the new industry, Mr Masters said that at present the highest prices being paid for calves were between 4/- and 5/-, while in the Waikato 5/6 was sometimes paid, and he briefly outlined how the returns could be improved, as was being done in Southland and elsewhere. It had been found in Southland that the Dairy Association could make an advance payment of 5/- a head and, after covering transport charges and llper head for organisation, it was found that there was a further 4/- to pay to the suppliers, who therefore netted 91- per head. Overhead expenses in transport were not heavy, and advertising was practically nil. All the dairy companies were asked to do was to forword the cheques on to the suppliers. Adoption of the scheme would result in a considerable increase in stock going through the works, and he believed that further reductions in railway charges could be obtained, especially as the rolling stock required was not otherwise in use at the period when it would be required to carry calves to the works.

Mr Masters explained that the idea was to set up a central committee in the North Auckland district and suppliers' committees in the various dairy company districts, to deal with the several problems of cartage and railway transport. The central committee would recommend to the N.D.A. carters with whom the association would enter into contracts. The only other work for the committees would be attending to transport, as all other matters, such as marketing of skins and meat, would be dealt with by the National Dairy Association.

Attention was drawn to certain clauses in the regulations regarding killing of calves, such as necessity for ante and post mortem inspections, and the requirement that calves could not be killed under five days from birth. Reference was also made to the arrangement in the South Island whereby carters were paid 75 per cent of their contract price, the balance being withheld until completion of the contract.

The Farmers’ Freezing Company was prepared to open Moerewa works on a guarantee of 1500 calves a month, at a rate which agreed with those charged at other works, and with an indemnity of 6d per head on a shortage in the number stipulated. It was thought that the works Avould be required to be kept open for about six weeks.

Mr F. Elliott said that at the Conference it had seemed that the regulation requiring the calves to be kept for five days before killing was a critical point, with which Mr McFarlane agreed. The latter explained that it had been discussed with Dr J. C. Reakes, Director-General of Agriculture. It was stated that keeping the calves so long was considered a rather harsh regulation, and' some in the South had said that if it were insisted upon they would not bother with the scheme, as they wished to begin milking in three days. Dr Reakes got in touch with Mr Crabbe, the Chief Veterinarian in London, and suggested a modification to three days. The reason why the regulation had been made was because a Reuter message had stated that New Zealand was exporting day-old calves. The matter was mentioned in Parliament, ami the health authorities naturally took action. The difficulties in that respect had been removed, and shipments whiph were on the water were allowed into the Old Country. To avoid any repetition of a scai’e of that nature the Ministry had thought it fit to impose the regulation. It was hoped, however, to have the age lowered from five days to three.

Continuing, Mr McFarlane declared that the mai'kct for boneless veal was quite good at Home, the shipments having brought 51d c.i.f., 51d and s:|d per pound. The boneless veal was sent over to Holland, where it was tinned, and was returned to the Old Country-, where the demand was greater than the supply. It was seemingly a palatable and appreciated food in England, where it sold at about 1/2

per lb, so that the market should be able to return more to the suppliers. If New Zealand secured the market offering, the speaker felt that it could be retained, owing to the quality of the calves.

Skins taken off properly at the works were worth more than those pulled off at the farms, and the demand for them was very great. The business promised to become a profitable one to farmers, and it would also give employment to a number of men who would be engaged at the works, while he was sure that there would be a demand for veal. It was a rush business, and would be all over in six weeks, but the scheme had been simplified as much as possible, with a view to making a profitable side-line for farmers.

In reply to a question, it was stated that carters would collect calves about three times a week.

Mr Hewlett questioned whether it would be possible to mark calves from the several factory districts, but it was pointed Put that all the calves would have to be pooled at the freezing works, as any other arrangement would be too cumbersome and involved. It was desired to run the business as simply and cheaply as possible, and there was very little difference in the average weight of skins, •specially as manufacturers were often prepared to give as much for a light one as for the heavier. There would be a pool at every works. In the course of further replies it was stated that in Taranaki alone it was estimated that 100,000 calves had been simply slaughtered last year, showing what a big industry the export of calves could become. Mr Cullen dealt with various phases of the scheme as outlined, and declared that he was enamoured of it.

Mr Elliott agreed, but thought that Jersey owners would be chiefly benefited, as he could see other promising markets ahead for steer calves of the larger breeds. He was also afraid that clay roads might militate somewhat against the collection of calves.

After discussion of various details of the scheme it was resolved to support it.

At Mr Cullen’s suggestion, Whangarei was decided upon as the centre for the central committee, and on the motion of Mr W. Crawford, seconded by Mr Clarke, it was further resolved that the chairmen of all dairy companies should constitute that body. Amongst the early duties of the central committee, said Col. J. N. MeCarroll, would be to ascertain what prospects there were of getting calves, and also whether the Railway Department would provide proper facilities for transport, so that, if a truck could not be fully loaded with calves at one station, it would be possible to fill it at other intermediate stations.

The dairy companies will be asked to set up suppliers’ committees in their districts, and the matter will be further considered after a meeting at Dargaville to-day. The meeting concluded with a vote of thanks to the visitors.