PIG MARKETING.

Hauraki Plains Gazette, Volume XXXX, Issue 5475, 16 September 1929, Page 3

PIG MARKETING.

THE CO-OP. ASSOCIATION. MEETING AT NGATEA. A meeting of suppliers to the New Zealand Co-operative Pig Marketing Association was held in the Ngatea Hall on Thursday evening, Mr C. W. Schultz presiding over an attendance of sixteen, representing all parts of the county. Mr S. H. Judd, chairman of directors, addressed the meeting at length on the working of the association during- the past season. Over’ 43,000 pigs, he said, had been handled, an increase of over 50 per cent, over the first season. Of these ovei’ 30,000 had been exported, and 21 pei* cent, had been sold locally, largely to the local curing establishments. Two point-six per cent, had been condemned for disease, a figure which showed a steady annual decrease. The quality was steadily improving. Just over 9 per cent, had been graded second quality last season, and most of these came to hand during the last three months of the season, when feed was becoming short. Reports on quality coming from England had been satisfactory, though it was apparent many pigs had not been finished off with grain and meal. The opinion had been expressed by Smithfield experts that if the quality continued to increase New Zealand pork would shortly be demanding a premium over those from other countries. Overweight pigs which exceeded 1801bs did not earn the Government export bonus, and consequently had to be paid at the rate of Id per pound less than baconer prices.

The pay-outs made for the past season showed that prices or average value in the saleyords was usually a fraction below that paid by the association. In addition there were no deductions by the association. The turnover by the association last year exceeded £150,000, and the lack of capital had seriously affected the operations, .particularly in the matter of advance payments and in the business standing of the association. The directors had considered the matter and had agreed that the time had come when farmers could be shown that results had been achieved. A new company had been formed and the policy would be the same as in the past, the only alterations being that in future the directors would be fleeted by the shareholders instead of by the dairy companies, as at present. The other alteration would be that a deduction of 2s would be made fpr each pig handled, and for each 2s deducted a fully paid-up share would be issued. .„ The shares would be resumable and transferable, but no dividend would be paid on share capital on account of the smallness of the shareholders, the profits being distri-. buted to suppliers of pigs in the final payments. It was proposed to issue shares for three years only, unless the supplier increased his supply in subsequent years, when he would be required to take up additional shares to cover his increased supply over the average for'-the first three years. The share capital would be utilised to making the final advance payments promptly. The capital of the proposed company would be £25,000, divided into 250,000 2s shares. In asking suppliers to take up shares the company was only asking farmers to put back what the company had given it, and would continue to give. In conclusion Mr Judd drew attention to a complaint which had been received .in England concerning pigs other than those supplied by the association, which had developed a very objectionable flavour, so much so that the pork was quite useless. It was something which, if it increased, was going to destroy the Dominion’s export trade, and the cause appeared to be the feeding of whale oil. The position was very serious, as advice had been received from old customers that they would be right gff the market in the future if any more cases were discovered. Whale oil was a good food for young stock, but it should not be fed to grown pigs within two months of finishing off. In reply to questions Mr Judd explained the operation of the Government subsidy, and of a movement to make grain offal available to pig fatteners at a much smaller cost than at present. If the protective duty on wheat and wheat offals was removed pig breeders could do without the pork subsidy and make more money. Mr J. A. G. Wilson supported the capitalisation scheme. In reply to a question Mr Judd said that the association received the same value per pound on the export market for pigs weighing between 1601bs and 180Ibs as for those weighing between 1201bs and 1501bs. The export bonus was received on pigs up to 1801 b. A pig weighing 3641 b, had netted 3d per lb. to the supplier. In reply to Mr Paton, Mr Judd said that the present directors would be the provisional directors of the new company. In a year’s time two directors would retire and be subject to 're-election by shareholders, under' the basis of one share vote, with a maximum for any shareholder of 500 votes. The ward system had been discussed, but owing to the size of the territory it had been dismissed as unwise. In the opinion of Mr Judd the company would confine operations to the Auckland province though working arrangements might be entered into with similar organisations under which the company would handle the marketing only.

In reply to Mr Paton, Mr Judd said that Is per pig was paid the organiser for every pig from his territory. The total overhead in the first year was 4s 3d per pig, but this had been reduced in the past season to 4s Id per pig. Out of the shilling the organiser had to pay the whole of the cost of organisation in his district. A balance-sheet was published annually and supplied to shareholders, and in future all suppliers will receive a copy.

In reply to a question Mr Judd said that A. S. Patterson and Co., Ltd. was in no way interested in the association. It had no money in the associa-

tion, and had never had any dealings with it. Many statements had been in circulation concerning the association, and in North Auckland it had been asserted that it was a proprietary concern. The chairman moved, and Mr F. Louch seconded, a motion endorsing the capitalisation scheme. This was carried unanimously, and the meeting closed with a vote of thanks to Mr Jud for his address.