SALE OF FAT STOCK.

Otago Witness, Issue 3763, 27 April 1926, Page 14

SALE OF FAT STOCK.

NEW SCHEME OUTLINED. RETORT TO FARMERS’ UNION'. ' , Some months ago the dissatisfaction of graziers in Otago at the treatment re* ■ ceived in respect of fat stock sales at Burnside came to a head in a proposal by Mr E. H. Murney at a meeting of the Otago Provincial Executive of the New Zealand Farmers’ Union for the establishment of a scheme for improving the methods of sale and the quality and price of mutton and beef. The project embodied the floating of a company which would deal with all the fat stock in the province without recourse to the Burnside saleyards at all. The matter was deferred at that time until the question had been fully investigated. A full report of the scheme was admitted at Tuesterciay’s meeting of the Otago Executiva by Mr Murney. In introducing his report he stated that . at Burnside stock was not sold at per ; pound, and all recognised that the per head system was out of date and inequit- , able. Euyers at Burnside pooled their.i stock, and the best returns were not assured the farmer. Another factor in the old system which detracted from its value was an inevitable loss of weight 1 and quality. Where stock were taken from the paddock and slaughtered at the nearest works no loss of quality resulted This was not so when animals were sent miles to the saleyard by road and rail. It was proposed, Mr Murney continued, - to form a company with a capital of £25,000 in £1 shares, which would be taken up by the sheep .and cattle owners on the basis of two shares per 100 sheep or 10 head of cattle owned. There would be no dividends paid on capital invested, but surplus profits would go towards reducing handling charges and expenses, thus proving of benefit to shareholders, only shareholders’ stock would be handled by the company. A depot would have to be secured in Dunedin for the cool storage and sale of the meat. All stock would be slaughtered at the nearest works, and forwarded to cool store in Dunedin. Skins, hides, and fats would remain the property of the grower, but other offal would be retained by the company, as it had been found . that it would be too difficult to divide such extras among individual growers. lii remaining the property of the company it was indirectly the property of the grower. All carcases would be graded under export conditions, and sold on grade, and surplus stocks exported. It had been suggested formerly that carcases should be disposed of by aue?.. tion, but this had been found impracticr able. The management must be left re* sponsible for the fixing of the prices of the different grades. The idea was now to introduce the scheme to branches for consideration. The basis of a sound business proposition w T as there. They wanted meat sold on grade and handed to the consumer in the best of condition. That did not necessarily mean they were going to get increased prices for their meat. All surplus would be exported if necessary. It was anticipated that there would be no difficulty in getting freezing companies to. freeze. Mr Revie said that the scheme was certainly worth a trial. There were difficulties to be overcome, but these were only made to be overcome, and he considered that if such a company were established the project would be second only to the fire insurance scheme that had already proved such a success. Mr Overton suggested that if prices were fixed at export value a man with heavy-weight wethers, say 801 b or over, would be getting about 4d per lb for his mutton. Mr Murney contended that this would be an inprovement, as less than that was being received at present. He instanced a case of a man he had spoken to recently. He sold a line of wethers which killed out at 1301 b, and for these animals he received 41s. At the time press reports of the Burnside market quoted prime wether mutton at s|d per lb. At 41s per head this grower was not receiving 3d per lb. Mr Kinney asked if Mr Murney were in favour of asking farmers’ freezing companies to participate in the scheme. Mr Murney: No. They would be of absolutely no assistance to us. To him it appeared that the scheme would do away with a great proportion of the over-weight stock at present being offered for sale. The grower would make more money off his 701 b stock than from sheep up to 1301 b. Mr Overton: Will this scheme do away with Burnside altogether? Mr Murney: No, not necessarily. What it will do will be to stabilise values.

.There is no doubt that at the present time there are too many fluctuations in v the meat market. The very slightest movement has its effect. In reply to a question Mr Murney stated that if they could get 15 per cent, of the stock already going to Burnside success would be assured. He did not .think the project could be launched before New Year, if it could be managed even then. When farmers gave their moral support to the scheme, arrangements could be taken in hand much more -.definitely. It was unanimously decided that the as presented by Mr Murney should sent out to branches for their con- - iideration.