BOBBY CALF POOL

Waipa Post, Volume 45, Issue 3210, 30 July 1932, Page 6

BOBBY CALF POOL

HIGH HANDLING COSTS A SILVER LINING. Urging upon farmers the pressing need for their loyal support of the National Dairy Association bobby calf pool, Mr C H. Backhouse, general manager of' the association, stated during the course of an address to Pahiatua farmers that three or four weeks ago it was just doubtful whether it would be.worth while continuing the operation of the pool. Values were so low and the position was so bad that it was doubted whether the association. would recoup its other charges for operating. They were up against high costs. The cost of collecting the calf at the farm gate and landing it in London was 6s Bd, so that 6s 8d came off before the farmer received anything. Some of the freezing workers got as much as £3 a day for killing and boning calves. That was what the pool was up against. It was astonishing to find that two-thirds of the value of the calf was eaten up by handing charges, leaving the producer one-third. Last season the federation handled 195,539 calves and no less than £60,452 out of a total sum of £81,352 was represented by cartage and railage, freezing charges, railway f.o.b. and ocean freight. It was apparent that these handling costs would have to be reduced to enable the producer to obtain a reasonable return. To this end strong representations had been made to the Government and freezing works.

Mr Backhouse said that the biggest factor wheh-had persuaded the Natonal Dary Association to run the pool was that unless it did so, the New Zealand Co-operative Rennet Company—which was the farmers' own concern—would be left without its supply of veils. The company was relying solely on obtaining supplies of New Zealand veils for use in rennet manufacture. The boneless veal industry, therefore, safeguarded the New Zealand cheese industry in regard to future rennet supplies in remost economical rate.

The rennett price in New Zealand was half the price of that supplied by concerns in other countries. If the New Zealand company went out of existence rennet might increase in price £2 or £3 per keg, which would be a very serious thing for the cheese industry.! The main proprietary concern, in opposition to the National Dairy Association bobby calf pool had now definitely advised the New Zealand Rennett Company that it intended to export all veils from New Zealand as a better price was offering overseas.

The department had tried to get cosls down, said Mr Backhouse, but the awards were keeping wages high. If they did get relief in the matter of lower freezing costs, it would be shown by a bonus. Three weeks ago they were told that a calf skin was worth 4d, compared with 8s lid some years ago. One reason for this was over-production. However, the silver lining seemed to have shown last week, when there was an improvement in the hide market and famers would certainly get more than 4d. The National Dairy Association, in fact, would hold skins until they thought the time opportune to sell. He added that in the past the association had taken 3d a calf for running the pool, but in the future would ; take only 2d for commission.

The meeting, passed a resolution that the pool be continued in the Pahiatua district again this season and the. farmers be, urged to give it every support. It was also decided to continue grading the calves this season.