THE BACON BUSINESS.

Franklin Times, Volume 9, Issue 785, 17 November 1922, Page 5

THE BACON BUSINESS.

A REVIEW OF THE SITUATION. The following letter has been sent to the secretaries of the various Dairy Unions, and will he of general interest to all farmers: —• During this period of low prices and small advances it is pleasing lo note the revival of the price of pork. II is many years since the season opened s<> poorly for the price ot pork. In September, in many districts, slips were bringing more than baconers, and dairymen were selling their fa I pigs at less than store prices. One factor particularly responsible for this, is the over-production, so tar as the Dominion consumption is concerned. of fat pigs. It is estimated that no less less than 380.000 will be eligible this year for the brine barrel. The logical cure l'or this over plus is. of course, export, but notwithstanding the fact that our mild cured bacon and hams are in keen demand in 'Britain and have obtained the place of honour in their own class at the Royal Show, that leading distributors in the Old Land are clamouring for it, and that Denmark’s annual trade with the United Kingdom based on last year’s turnover amounts to almost as much as the lotal value of our dairy products for the same period. , The position in the past was that our own Co-operative Bacon Company had been unable to agree with the other bacon companies, and a policy of destructive competition as regards Dominion trade —a short-sight-ed suicidal policy, injurious alike to producer and trader, followed. Unfortunately, this state of things is by no means confined to the pork packers.

This was the position as we found it some two months ago, and deciding to take a hand in reconstruction, meetings were held in Palmerston North and Hamilton, resulting in a tentative arrangement between the companies concerned, including an agreement, whereby competition of a destructive nature would be cut out and an understanding regarding the export of surplus stocks arrived at. ■No finality, however, was reached, but there is every prospect of a satisfactory settlement. In the interval, the Co-op-erative Bacon and Meat Packing Co. lias ceased operations pending reconstruction.

It is just here that our organisation lias shown (tie value of united effort by those whose interests are at stake, guided by the best minds available in dairydom. Our Palmerston executive formulated a plan of reconstruction which included a Government guarantee on a,£ for £ basis fir a sum running into five figures. Incidentally, it may be mentioned that thsi is the first occasion on which the Government of the country has ever come to the assistance of a farmer’s co-operative, concern. In the dying hours of the last session of Parliament, Mr Massey mentioned that the Government were about to assist a producers’ concern, and those interested in pork \voi|kl know what lie was referring to. The Dairy Companies of the Dominions were .asked lo guarantee the balance required, and the N.Z.C.D.C. proposed lo do their share provided all contributed. The scheme as outlined did not involve any payments in cash either by Government, the Dairy Companies, or the allocation of any shares whatever, the bank agreeing to find the necessary capital fur purchase of pigs, etc. A lease of the company’s works will be undertaken by the new management, thus enabling this important co-operative concern to continue working on sound reconstructed lins, ensuring to Hie dairymen protection against exploitation by private interests, maintaining the price of pork at a fair level, and gaining a great victory for co-operation. Dairy farmer Unionists can point with pride to a most creditable and timely achievement secured by their progressive executives.

The result, reduced to a money value may be gauged by the advance in the price of pork amounting up to Hie present to 24d per lb. A continuation of the price of pork at this level for the season will put into the pockets of pig fal toners £250,000 over and above what would otherwise have received.