THE BOBBYCALF TRADE

Te Awamutu Courier, Volume 55, Issue 3927, 16 July 1937, Page 5

THE BOBBYCALF TRADE

PROBLEMS OF TRANSPORT. CONFERENCE OF CARRIERS AND FARMERS. Part of the time of the conference on Wednesday afternoon of master carriers and district farmers, with Mr E. J.. Phelan (No. 1 Licensing Authority) as chairman, was devoted to the bobby calf business. Mr Phelan said he was definitely' instructed to fix the price of cartage of bobby calves, and conditions to-day would be the basis. If the carriers had to go on to the farms, weigh the calves, and buy them the cost must be higher. He wanted the farmers to co-operate. The tendency was to have the calves weighed at the freezing works and the price paid on those weights. If the farmers would agree to place the calves at the farm gates the cost would be lowered.

It was suggested that the scheme operating in the Ngarua district was suitable for Te Awamutu district. At Ngarua the calves were placed at the gates, weighed there, and marked. On arrival at the works they were paid for according to the weights at the gates. Calves not up to specification could be refused at the farm gates. Some might escape rejection there, and provision would be made for them to be rejected on arrival at the freezing works. The trucks would be equipped with weighing apparatus. Mr Nicholls read details of a plan prepared by a layman and which contained many of the points that appealed to the Authority. This scheme would be practicable only under an association of carriers.

Mr Phelan said everything depended upon having an association that could enter into agreement and give a bond for proper performance. There would be no price-cutting or falsifying of weights. The money for carrying would be pooled and distributed by he association to its other members. Zoning would cut out overlapping, and thus be more economical. Furthermore, there was need for shelter for the calves penned at the gateways.

Mr Hodgson said too much had been made of alleged inhumane treatment of calves. Nearly all pens were closeboarded, and so long as the calves were fed sufficiently they would not suffer harm. Cows did not spread wings over calves to keep them warm. Mr Phelan said there were cases of varying prices, and thus dissatisfaction was bred. Mr Cavers said even though the price agreed upon was 6s 6d per head variations were made in this district. The peculiar fact was that there were eight buying firms and only two exporting firms. Naturaly there was opportunity for breaking the terms of the agreement. TRADE WORTH WHILE. Mr Phelan gave the conference some information on the above point. As to competition, it was not desired to eliminate it all, or the farmers would lose. He favoured eliminating competition at the farm gates. The buyers could compete at the works. On a conservative estimate each calf was worth £1 in New Zealand, and there were between 500,000 and 600,000 calves handled in the Auckland province each year. The trade was therefore well worth while. Mr Hodgson thought the Transport Authority would have to define an area for the local carriers. Perhaps Cambridge could not agree, while Te Awamutu agreed, and thus there would ensue a price war. Mr Phelan said he could not delay. He would have to fix prices under the existing rotten conditions. He was representing the people as a whole. Transport licenses were fairly wide, and perhaps he could not entirely eliminate buyers from entering an adjoining district. His job was to fix the charges from the farm gates to the railway station or the freezing works. That would apply for this season, and would no doubt be subject to review in time for next season.

Then, to a question, Mr Andrewsaid the Carriers’ Association was prepared to assume responsibility for the zoning and picking up of all calves on a route, thus eliminating overlapping.

A Matamata representative said zoning could be introduced there at a moment’s notice, but it was impossible owing to the attitude of one man, a carrier who would not co-op-erate. The solution was for the whole job to be handled by the Association. The men with temporary licenses were causing trouble. (Hear, hear.) In further discussion Mr Phelan was told that if the Carriers’ Association had to provide the weighing apparatus something extra should be allowed the carriers. Mr Phelan asked the position if the farmers co-operated to sell only to members of tjie Carriers’ Association. £1 PER HEAD ON HOOKS ! The Matamata representative told of 8s per head being refused for Shorthorn calves, and the owner was assured that he would get £1 per head on the hooks. Mr Phelan said marking the calves at the farm gates, where they were weighed, would check the receipts at the works. The pool created at the works would be distributed by an association of farmers. The farmers could promote or ensure competition for the calves at the works. To prevent “piracy ” legislation might be promulgated. He advocated preference to members of the Carriers’ Association.

Mr Hodgson suggested giving a license only to the Carriers’ Association to handle calves in a given area. That would eliminate many of the evils. The Authority could refuse permits to any other carriers to buy calves in that area.

Mr Phelan said to do that would mean creating a special bobby calf or live-stock license. There was a good deal of pressure exerted to induce the Authority to issue temporary licenses.

Mr Hodgson: That only shows that the farmers are not getting full value, lorries in the district to efficiently

handle the bobby calf trade, Mr Phefor otherwise there would be no inducement for temporary licenses. Answering a question by Mr Andrew as to whether there were enough lan said the Carriers’ Association was loyally observing its undertakings and he believed it could adequately give the needed service. He would be guided by a recommendation from the farmers and carriers of Te Awamutu district, if a decision were made at once. FIXING THE PRICE. Mr Hodgson said agreement could be reached at a meeting within a week. Mr Phelan said he thought conditions would be practically the same for all districts as far south as Taumarunui. As to the question of unsuitable calves, it was stated that inspectors of the Society for the Prevention of Cruelty to Animals had authority to stop any lorry, and if calves were not up to standard the driver could be debarred from getting further employment at bobby-calf carrying. Mr Andrew said the Waipa Carriers’ Association had notified that it would not be responsible for any calves loaded into the lorries, thus throwing the onus on the farmers. It was pointed out that the farmers could assist by discoifraging more buying firms. At the present time each buyer or firm wanted the Carriers’ Association to hold about a dozen lorries in readiness for his convenience. That was quite unreasonable and uneconomical. EXISTING CONTRACTS. It was pointed out by Mr Rowan that some carrying firms had verbal contracts for twelve months with the calf-buying firms. To Mr Hodgson, the chairman said he could not restrict members of a carriers’ association to a smaller area than they were already licensed for; but he could review any license if an operator deliberately committed a breach of the Carriers’ Association’s rules. If the Association agreed to handle all the calves, and failed, there should be a penalty. Carriers could not contract outside the limits of the Act. He hoped unanimity would be reached: it would be a big forward step worth striving for.

A'case of one lorry operating to a district nine miles away, yet travelling fifty miles, was mentioned as a proof of uneconomical methods. The representatives of the Hamilton district and Matamata Carriers’ Association gave assurances that agreement reached at Te Awamutu would be acceptable to their districts. Mr Phelan, before terminating the discussion re bobby calves, said agreement on that subject would be a step towards agreement re general goods cartage. It was conceded that the best solution was to zone the carriers and then fix the charges. Mr Phelan was accorded, by acclammation, a hearty vote of thanks for his helpfulness at the conference. Replying, Mr Phelan said he would do anything possible to help in reachin agreement. Te Awamutu district was an ideal place for instituting a system. EXPORT VALUES. FARMERS’ EXAGGERATED VIEW'S. Interviewed by a representative of Te Awamutu Courier regarding the export value of bobby calves, Mr W. A. Phillips, chairman of directors of the New Zealand Co-operative Pigmarketing Association, Limited, said, inter alia:— “ Owing mainly to the competitive factors in this trade, which at times •—as was recently the case in certain districts in the Waikato—passed beyond the control of the exporters themselves, it is not surprising that farmers are confused as to the real value of this product. “ I am therefore pleased,” said Mr Phillips, “ to have the opportunity of clarifying the position by stating the following facts:— “ The average live weight of calves slaughtered in the Auckland province approximates 62 lbs, of which, after skinning, boning, and trimming, only roughly 25 per cent in weight is retained as exportable veal. The veal is exported, frozen, in bags, and is usually sold forward at upset c.i.f.e. price, with delivery spread, much beyond the normal season for collection.

“ The skin from an average-weight calf would weigh approximately 4i lbs, and is usually sold green, on the freezing works’ weight and grade. The offal, consisting of hearts, kidneys, livers, etc., is exported, frozen, in containers, and is sold accordingly. The veil, which is the only remaining byproduct of value, is mainly used in New Zealand for the manufacture of rennet.

“ The current delivered-at-port-or-works export values of these products from the average weight of calf is approximately as follows: Boned veal ss, skin 5s 6d, offal Is 2d, exchange (on meat and offal) Is 4d; total gross value, 13s. Out of this the following charges have to be met: Overseas freight on meat Is 3d, killing and other works charges to fo.b. 3s Id, marine insurance and export selling commission 3d; a total of 4s 7d.

“ This leaves a net all-sunk value to the exporter of approximately 8s sd. Therefore, to arrive at the price payable to the farmer, it is necessary to provide for all costs of handling the live product from farm gate to port works. These are: Cartage to rail, at present Is 3d; agents’ commission and railage, varying from 3d to Is 3d according to distance from works. These are direct charges only and make an allowance for indirect losses, such as that on calves rejected for export, excessive railage costs that occur on both sides of the peak period additional storage costs on veal to effect shipments which buyers require spread much beyond the currency of the slaughtering season, and in consequence yet another direct loss is occasioned by the abnormal shrinkage in weight of veal packed. All of these

factors are common to the trade, and must therefore be provided for. “ Finally,” said Mr Phillips, “ I wish to make it clear that my comments apply to current values only, which are based on the most favourable port works charges. In saying this, however, it is desirable to mention that although over the last two years the' average export value of the veal and offal has varied very little this does not apply to the skin market, in which substantial fluctuations have occurred. The demand for bobby veal and offal is mainly from England, but that for skins is international in scope, fashions playing a big part in the competition for the product and the resultant price offered.”