PIG MARKETING.

Hauraki Plains Gazette, Volume XXXX, Issue 5388, 15 February 1929, Page 2

PIG MARKETING.

THE CO-OPERATIVE ASSOCIATION.

KEVIBW OF OPERATIONS.

A report on the working of the

N.Z. Co-operative Pig Marketing Association was given by Mr N. W. Hastings, the organiser, to a meeting of Haiiraki Plains farmers at Ngatea on Wednesday evening. Mr F. A Kneebone presided.

Mr Hastings said that twelve months ago scale buyers dropped the top weight and the prices, and as a result the Co-operative Pig Associar tion was formed. It was an association of 16 Waikato co-operative dairy companies, which appointed the directors. The scheme had been explained to bankers, but they had declined to finance the proposal because* they were financing the scale buyers. ■As finance could, not readily be obtained the association had to commence with the small advance price; of 2d. The Association had exported 37,000 pigs last season, and the result was that scale buyers had to advance their prices. This gain to farmers as tlie result of the association’s work was per lb. Porkers hail been an unfortunate venture, as many carcases had been taken from farmers who had found it necessary to get rid ef them during, last summer’s draught. A gamble had been taken, and the operations in London of an exporting firm had caused a loss, and also the delay in making payments.

In comparing prices with those of the scale buyers it should be considered t,hat the association paid f°r pigs less the head and intestines, and this worked out at 19 per cent, above the weight which scale buyers gave. On last season’s price this represented %d per lb. Mr Hastings quoted instances as demonstrated by weighings at Thames and Paeroa.

Another saving had been effected for farmers by the elimination of the Is deduction for insurance. On last year’s figures the Is charge would have returned a clear profit to the association of over £5OO. Members thus benefited instead of. the exporting; firm.

Mr Hastings qndeavoureff to shew the fault of the present system of State assistance to t'he pig industry, and contended that 78 per cent, of the money had gone to a certain proprietary exporting firm.

The association was, now on a; firm footing, and its turnover during thq present season up to Christmas was three times as great as, the whole of the previous season’s. The cost of organising was limited to Is per pig. wher,eas the scale buyers paid their agent 2s a pig to receive and weigh only. The association had its pigs treated at Horotiu, but the scale buyers trucked a much greater distance. The scale buyers resorted to the saleyards to fill their trucks, but' did hot buv in competition with one another. Members could buy pork and bacon from the association at the same price as could grocers. The association had to have a local mai,ket to dispose of those carcases which did not. comply with the requirements of the London market. The associated scale buyers were now offering farmers and others bacon and por,k at very low prices, being willing tpt lose money to get the trG.de and thus injure the association’s Ideal trade. The association had been able to make a contract with an Australian firm to take the wheile of its output at a price which would enable aji advance pr,ice of 415 d per lb to be made witliia seven days/ With the association’s 10 per cent, greater weight tills price was equal to 5d per lb, and liieie would be a bonus of at least lit!. The sc,ale buyers had learned of this contract and had advanced their price, with a view tp» preventing the association from getting sufficient pigs ami forcing it to break the contract. There was no justification for the price npnv being advanced by scale buyers, and if the association was not loyally supported by farmer? and to break its contract the spale price would fall rapidly. If. farmers wanted / a high present price and a low price; ever afterwards the scale, buyers should be supported; but wise farmers. would realise that it was a direct challenge to co-operation and the association.

In reply to a. question Mr Hastings said that it was impossible for tlie association to buy pigs; in thq farmers’ paddocks, as was done by the scale buyers, because the weighing was carried out at the freezing works. The carter’s contract was from the depots, but most carters did collect in the farms at a small extra charge to tlie far,me ( r. All octets were pooled from the time the pigs were put on the trucks, but the farmers had topaz the cost, of delivering to the railway.

Mr Hastings explained his scheme’ for forming the association intq a; limited liability company, which would enable it to finance on lettqr,s of credit, overdraft, etc. There would be no liability on farmers, who would be required, if the .scheme eventuated, to contribute Is a pig, a sum which the s’alej buyers charged for insurance, and a fully-paid-up share would be allotted when £1 was thus contributed. At the present rate at which pigs were cpming forward t'he scheme would only have to be in fotece' for three years to provide; sufficient capital. The scheme was his own'.T.he board of directors, had not yeti adopted it, but a recommendation from the meeting would undoubtedly carry weight. Mr H. F. Louch moved, and Mr AV. Phillips seconded, a motion recommending, the board to consider the scheme of forming the association into- a limited' liability company in the manner outlined by Mr Hastings. The motion was carried.

To test the feeling off the meeting, Mr Louc,h moved that all present pledgq their support to the association for 12 months, irrespective of the price paid by the buyers.

Seconded by Mr W. Fisher and carried unanimously.

The meeting closed with a vote rif thanks to Mr, Hastings for his able and instructive address.