COST OF CARTING BOBBY CALVES

Hawke's Bay Herald-Tribune, Issue 154, 17 July 1937, Page 19

COST OF CARTING BOBBY CALVES

Transport Authority Meets Operators VIEWS OF EXP0RTERS w.ccause they *re faoing ihereased costs, carriers participating in the collection of bobby calves this seasbn ara asking for additional xemuneratibn fbr their services. Whether they will gefc" it, however, will depend on the verdict of the transpQrt licen$ing authorities which are looking iqto the mattbr tq see if the increase is justified. In Palmerston yesterday Mr P. O. Skoglund, No. 2 Lieensrng Authority, diseussed the prbblem with representatives - of the operators and exporting firms, who came from as f ar afield . as Taranaki, •Wanganui and Wairarapa. Mr Skoglund obgerved that in- the past charges had varied considerably in the various districts, governed by the distances involved and number of calves carried. The prices had varied from 9d to Js 6d. Mr Skoglund intimated that after he had heard the representatives he would proceed to' Auckland and consult with Mr B. J. Phelan, who was conductitig a siinilar mission in the Auckland province. Mr S. McDqiwall, speaking fbr the Feilding branch ' of the Transport Allianee, said the present system was that the various export interests were buying in competition and arrangihg their own transport. It'was, therefore, mainly a mafter of who'got tb'a farmer 's gate 'first, and it w'as on recordthat a lofry woffld rush past a gate where only one calf was waiting to get to another fnrtber on where there would be more." As many as four carriers would be seen operating over ohe route in the Mana watu, and1 this was quite ridiculous. * : Mr McDowell produced figures which were illuminating: — 2000 calves for 1540 miles of running, 3010 calves for 4320 miles, 3000 calves for 5280 toileg, 3207 calves for 2616 miles, 4000 calves for 4400 miles, 1112 calves for 2330 miles, 998 calves for 2586 miles or 2J miles fbr every calf collected, 1100 calves for 2300 miles or a rnn of two miles for each calf colldoted. In one case an operator had collected only 24 calves in 105 miles and hia greatest collection over the same route was 63. One firm had calculated that it had cost them 5.48d per vehicular mile to collect calves, or in other Words, they had lost £90 during the season on the business. No transport firm could alford to make such a present to the indugtry. The only payment that wbuld meet the eireumstances would be one fled on a mileage basis. He knew' the export interests were adverse to such a procedure, but the facts were that it cost ls 2d a mile to operate a vehicle. Mr P. O. Skoglund said that from k figures supplied the Dejpartmeut, it had been deduced that vehicular mile costs were as follows; — Up to 4J-ton truek, 8.92d; 44 to 5 tons, 9.68d; 5 to 5$ tous, 10.17d; 54 to 6 tons, 10.06d; 6 to 6i tons, 10.16d; 6i to 7 tons, 10.67. h£r Skoglund added that he did not con,sider the figures at all accurate, but even if 20 per' cent. were added, the • figure would not be more than ls. Where Competition Not Beneficiai Mr Skoglund obaerved that in the Manawatu it seemed competition had increased the price of carrying rather than reduced it. Mr W. T. Stanton (Taranaki) pleaded a similar case to that presented by Mr McDowall. Their operating costs last year had been 10$d, but this would be increased at least 25 per cent. this season. The speaker also emphasised that collecting calves was a slow jqb and so labour costs were higher. Eepresentations from Southern Hawke's Bay were for ls 6d per mile for November-July inclusive and ls 4d per mile for August, September and October. Eeturns showed that at the beginning of the season one lorry had gone 50 miles for one calf and ano^ier 81 miles for three calves. Mr E. W. F. Gohns (Wanganui) quoted a lorry running 4600 miles for 1987 calves, which worked out at lesa than 6d. per mile. Mr Skoglund: Why do the carrieis do it? Mr Gohns: Well, unless there is a satisfactory price this season they won't. He added that the operators of "pirates" had been partly respoaible. Competition wa eo kebn in the Wanganui district that 6ne firm, he uhderstood, was offering beUzine free. Another firm had offered ls 6d until it heard that this conference was to be held. Anything less than ls 6d was not gonig to pay the operators. Mr Gohns rbgretted that the conference had not beeh called earlier so that the operators cbuld have been zbned. ■jL'he Bxporters* case Mr Hastings, representing the P.M.A., pointed out the toany factors influencing the cost of'cartage. The " connection " of the fivm for which a man carted was a very material faet.or, giving him large or small loads. 8ome of the operators also carted for the one firm all the year | rouud aud when not dehliug with calves j plcked up other stock, so that losses on j calves rrcre rnado up in other directions. | Mr Hasfcinga also stvesse'6 that the j attractive priee offered for calinkins at ! present inighl iuduce farmers to do their : ott'u skiniiing should the cost of cartage i go tou liigi! Lu fixing a pricc, the trans- • xjoi'i authority should also fix tlie day j on which the lorriea should start oper&l- j

ing, thus eliminating the unprofitable. periods. It should also not be forgotten that the cash at the gate system did away with administration overhead and offlce costs. A lot of time wasted at .the farmers ' gate would be saved if the carriers carried out the instructions of the companies and paid the price told them instead of conducting a sort of auction wi.th the farmer because another carried had pfeviously offered more. * Mr Skoglund: In that case a carrier. might, go around and not pick up a calf. The evil is with tho firms Who aceept' what' th'esb carriers do. - Mr Bearsley (Palmerston North) remarked that with the cash at the gate system a carrier would of ten • cut ; his cartage cost and pay the farmer more for his animals rather than lose them. Mr Pettigrew (Patea Freezing Qompany) said his figures revealed that running costs had been lOd And the carriers had been paid ls. Mr Wilsbn, speaking on behaif .oi ,th© Wairarapa Veal Society, said that as ".the result of the opefatibnp of his or^anisation, cost3 were the lowest in ' the Island, about 8.80d. His organisation had xesulted in the elimination of overlappihg'and other evils. J. 0. Hutton38 representatiye (Mr "Powdrell) pointed out that the dilferent methodB adopted by the eompanies were factors affecting costs. In fixing the . .price, the attthority should deal with each diatrict • separately, as in quite a number oi localitiea .the carriers wero . satisfied. Mr Kuight (W. and B. Fletcher, Ltd.) said the buying eompanies • were in agreement that there should be an increase to compensate for higher costs, but each district should be dealt with on its merits. The exporters thought a 25 per cent. increase sufficient and so were prepared to" give ls 3d. Mr Hastings said ls 3d was an acceptable rate in the Waikato. Mr Skoglund advised that for the 1935 seasbn the cartage of calves had worked out at the following prices: — 19 per cent. nt 9d, 3 per cent. at JQd, 1} per cent. at lld, 58 per cent at is, 62 per cent at ls Id, 6.04 per cent. at ls 2d, 7.46 pr cenu at ls 3dj .24 per cent. at 1b 4d, and 4.08 per cent. at ls,6(L • Mr Matthews (Pahiatua) agreed that zoning would be the only remedy, as costs went up with the ihorease in com- • petition. ' • Mr McDowall said a universal prwje would not »olve the problem owing to the Way the cow population varied in different distiicts and geographical obstacle?.; • . „ Mr Skoglund said the variation had already been allowsd for and any new . price would just have to be a percehtage increase over past charges. ' .Deoisiqn was reserved. • "*■