Bobby Calf Pool Debated By Dairymen

Northern Advocate, 22 July 1938, Page 2

Bobby Calf Pool Debated By Dairymen

IF TER A CONTROVERSIAL DISCUSSION. THE RECENT ACTION OF V THE DIRECTORS OF THE MAUNGATAPERE CO-OP. DAIRY CO., LTD.. IN PLACING THE DISPOSAL CF BOBBY CALVES IN THE FACTORY’S AREA IN THE HANDS OF THE CO-OPERATIVE PIG MARKETING ASSOCIATION WAS CONFIRMED BY SUPPLIERS AT THEIR ANNUAL MEETING YESTERDAY. The board of directors took their action following the formation of the bobby calf pool of its suppliers a short time ago.

Chairman Reviews Position

“Recently efforts to form a bobby calf pool in the factory area were undertaken. with the result that more than 80 per cent, consent of suppliers, required by the Minister of Marketing, the Kon. W. Nash, was obtained.” said the chairman of directors, Mr L. Reynolds, in addressing the meeting. "In deciding to allot the disposal of all calves to the Pig Marketing Association. the directors were actuated by motives which they considered entirely in the interests of suppliers and Northland generally. The association is a farmers’ co-operative organisation, dealing with pigs, and if given the bobby calf business, which is in the off season, it would enable the organisation to bo kept complete for the handling of pigs during the summer months. Supply to Moerewa, “All calves handled by the Pig Marketing Association go through Moerewa Freezing Works, and to my mind this is an important consideration. The recent, annual meeting of the Auckland Farmers' Freezing Company disclosed that there is a marked decrease in the number of stock going through Moerewa. as compared with the previous year. The decrease is disquieting, and should not be allowed to continue. otherwise there is a possibility, perhaps remote, of the works being closed down. This would he a most serious reverse to the whole of Northland.

pool in its district. It had also been asked to tender for the Whangaroi pool, but although it would have liked to have done so, it could not as a cooperative organisation. In the Maungatapere area, carriers had been appointed for calf collect lion who were considered most satisfactory to the suppliers. No tenders had been called, for this branch of the activity, as private' treaty was considered to give the best results. Association’s Success. Speaking of the success with which the association had handled calves in past years. Mr Babe said that last year it had dealt with some 157,000 animals, an increase of between 10,000 and 11,000 on the previous year. To date this year it was handling 25 pools in New Zealand. As with its pigs, all calves were being handled on a cooperative basis, and the payments made at the gate to farmers for animals would be in the nature of an advance only. The advance would constitute 90 per cent, of the animal’s value. ' ' Questioned as to The prices paid. Mr Babe said that, these would range I from 3/1 for a 50 lb. calf to 11/- for a 120 lb, animal. He himself was receiving Id per calf for those handled in this district, but this in itself was a saving of 2d per head on conditions ruling last year. It was expected that considerable other savings could be also made under this year’s scheme. One or two suppliers commented that the P.M.A. prices were less than those being offered by competitive firms. “Competitors will naturally try to smash the pool at the outset, even if they have to pay more than the calves are worth,” commented the chairman. The directors’ action was confirmed on a show of hands by 37 votes to 18.

“All Northland co-operative dairy companies arc shareholders in these works, and this in itself should be sufficient to warrant supporting them. “In the report of the recent annual meeting of the Hikurangi Dairy Company, it was. gratifying to road that suppliers, in discussing the formation of a bobby calf pool, strongly favoured making it, compulsory for calves to go through the works.” Suppliers Misled? Mr E. H. Sloane considered that suppliers had been misled when their signatures had been secured for the petition of suppliers for the formation of the pool at Maungatapere. Many suppliers had been under the impression that public tenders would be called for the handling of the animals, instead of which the directors had handed it over to the Pig Marketing Association.

“Competition is the life of trade,” said Mr Sloane, who strongly objected to the procedure taken. "The Pig Marketing Association is a co-operative concern, and for that reason I would not touch it with a 40-foot pole,” he added. The chairman: "You supply cream to our factory, though.” "Yes.” answered Mr Sloane,” and get 2;j per cent, for my invested capital. And that is a good investment compared with some farmers’ co-opera-tive concerns.” Opinions at Meetings.

The chairman read minutes of a r meeting of suppliers held at Maunu ’ prior to the formation of the pool for ", the discussion of the question, when it had been unanimously decided that f calves should go through the associai j 1 1 ion. Tins feeling had also been exs i pressed at other meetings, some of i which had been well-attended, although others had not. * t “In the face of that, the directors ■had no option." ho declared. “Wo are I here to do as you wish, and arc not I j the bosses of the concern. If suppliers ' do not abend meetings, and then cx- • press contrary wishes, it is not our ! fault/' He added that although authority ! had been given to the association, this -I was not necessarily binding for the f ( whole year if suppliers were not satisI tied. Mr O. V. Adlam pointed out that i by selling direct, farmers would have 'everything to lose, as on the American | market, skins had never been lower f; than at the present lime. Mr Johnson pointed out that the ( } j Association was only acting as agents I 1 I tor Ihe, pool, nnd did not become the i ( ! owners of the calves. ! \ > Several speakers, however, declared 1 I that they would not have signed the ? j circulated petition .had they known »| that tenders were not ,o be ended IkM.A.’s Position. '1 he position of the Pig Marketing Association in the pool was outlined by its representative, Mr J. Babe. Mr Babe reviewed the history of the ; caW pool proposals in New Zealand. ■ pointing no. that a scandalous posi- , j lion had previously existed through J overlapping and “rafferty" rules. The : i farmers’ income from bobby calves ! was little more than a drop in the ; bucket, only £700.000 having been rea- j 1 lisod from this source last season, but* the voluntary pools had been sag- : ,go sled as a moans of control. The : ; Fig Marketing Association had been i asked by the directors of ihe Maunga- . 1 tapcrc Dairy Company to handle the 11