GO-OPERATIVE PIG MARKETING.

Putaruru Press, Volume IV, Issue 134, 27 May 1926, Page 9

GO-OPERATIVE PIG MARKETING.

THE MAN AW ATI' SCHEME. Explained at Morrinsville. A scheme of co-operative marketing, claimed to be for the betterment of the pig industry, was outlined at a meeting of farmers in the Coronation Hall, Morrinsville, on Thursday afternoon. The details were explained by Mr. Lindsay Gardiner, a representative of the executive of the North Island Co-operative Pig Marketing Association. THE BIRTH OF THE MOVEMENT. Mr. Gardiner said the scheme was first mooted about 18 months ago by the Rata (Rangitikei) and Levin Dairy Companies, who then considered they were not getting a fair price for pigs in comparison with the export figures current at that time. These two companies commenced operations, but they met with the difficulty of not being able to make up parcels sufficiently large to warrant an economical export trade. The _ matter was then brought up at a meeting of the Manawatu Dairy Companies’ Association, and l a committee, consisting of Messrs. S. Broadbelt I' (Levin), C. G. Dermer (Cheltenham) and H. McManaway (Rata), was set up in an endeavour to forward a cooperative scheme on the lines already tried by the individual companies. The main difficulty they found was the disposal of the unexportable or reject pig, which, upon an average over the North Island, was about 40 per cent, of the total killings. This difficulty was overcome through an arrangement being made with the Fielding Bacon Company to freeze all exportable pigs and also take over for j local trade the rejects at a price equal to one-fifth of a penny net to the vendor above the average price being paid by bacon companies operating in the Waikato, Manawatu and Wairarapa districts. i Dealing Avith the local trade, Mr. Gardiner said it had been found that Australia might become quite a good customer for NeAv Zealand bacon and hams, and in explanation of this he said it might appear peculiar that, while the Government regulations did not alloAv reject pigs to be exported frozen, ,the bacon and hams made from the rejects could be exported. THE BRITISH MARKETS. a* The market of the British- Isles, he Continued, would take pigs "o£ practieally all weights, either porkers or baconers, but the executive recommenchar that the New Zealand, farmers shoulVi concentrate mainly upon the production of baconers in that the export trade was longer and that there was a better opening for the sale of the reject ; also that countries such as Denmark and Poland could watch the porker, market much more closely than could New Zealand and were thus able to avail themselves immediately of favourable fluctuations in the market. - London was the consumer of the porkers but the baconers Avent to the Scottish curers and sold as English • bacon. They must grade into two grades, porkers and baconers, and again into two grades of baconers, exportable and unexportable. When the exportable pigs were again graded they must have a number of pigs made up in the different grades within a reasonable time or else they would remain in store till they accumulated, thus incurring storage. FINANCE. Dealing Avith the financial aspect w Mr. Gardiner said that neither the farmers nor the dairy companies would have to find any guarantees nor did the farmers have to take ut shares. There Avould not be any guar, antee with the suppliers to send theii pigs. The scheme was not designee to hit the bacon companies but t< bring the price up to the expor ..parity. In this concern, if the farm ■ers come out square, that was all tha was Avanted ; the bacon companie must get a profit. The only Avay t wreck the scheme was for the baco companies to stand out of the marke •for, say a fortnight, and the work of the co-operation would not be abl to cope with all the pigs offering, bu the farmers could combat this b holding their pigs. The Avorks a Fielding could not handle all the pig offering but the measure he mer tioned could last only for a shoi while. As regards payments, Mr. Gardin; said Dalgety and Company avouUl a< vance the average local price of tT pigs less the cost to place on the sh: and on realisation the full paymen were made. Dalgetys, as broker were interested to the extent tin they acted as selling agents for tl executive for the exportable pigs, ai for this service they Avere remune iHfll ated Avith a commission of 2t percer on the gross sales. For this cor mission the brokers attended to a

advances, shipping arrangements, selling' in London, and remission of surpluses upon the various parcels and all clerical work incidental thereto. The executWe itself had no clerical staff, the brokers paying direct to the dairy companies whose suppliers had sent forward pigs, and the dairy companies’ secretaries then distributed the proceeds to the individual suppliers concerned. While on this subject, he pointed out that farmers were entitled to nominate whetlier their exportable pigs were to be exported or not. In the event of them not being exported, and sold locally, he would receive the full locdl value within at least seven days. It was therefore optional for the supplier to export and. await the final surplus from London, but the longest period farmers of the Manawatu had had to wait for surpluses had been three months from the actual killing date. ADMINISTRATION. To handle the concern, a small executive was formed by an annual meeting of the dairy companies. The executive numbered only four at present, but in the event of the Waikato district joining in a sub-executive could be formed to meet every week in order to watch the prices. For tire exportable pigs the executive was left free to sell locally or to ship on consignment, to sell f.o.b. or c.i.f. as the conditions warranted. The speaker was on the executive as an employee of Dalgety and Company and to give information concerning prices and conditions. The co-operation’s shipments had averaged 9d per pound c.i.f.e. Glasgow, realising 6'id per pound net to the farmers, the average for the whole line being 6s a pig- above the average local prices. In his district the prices were at least Id to lid better than had the scheme not been in operation. Their object was to obtain high prices while they had the greatest number of pigs. For baconer purposes the best weight was 1401 b, but the tendency in England and Australia was for the lighter pigs. A bacon company had difficulty in selling heavy hams, so that was why the maximum of 1501 b was imposed. The average price paid by the cooperation for the season was 6 2-3 d. The ideal was to sell on the hooks and not on the hoof, as the buyer did not know which of the pigs were exportable or unexportable and which would be condemned. The buyers therefore fixed their prices on a safe margin. . INSURANCE. Referring to the insurance of pigs, the speaker said that during the early stages of the scheme some dairy companies paid the insurance, but they

found that the rejected pigs came usually from the same farmers, so they decided that the companies would pay the insurance except for farmers who had sent in a number of rejected animals, these farmers having to arrange their own insurance.

COST TO DAIRY COMPANIES. The cost to the dairy company was merely the clerical work. One dairy company charged 4d per single pig up to Is for a parcel for clerical work. One company had a buyer to buy the pigs on the hoofs, care being made that an excessive price was not paid, but when the pigs were realised a bonus was paid. The buyer was paid by some dairy companies on a percentage basis. In reply to Mr. J. E. Leeson, Mr. Gardiner said the London prices had been particularly favourable. Mr. Leeson : And we can’t expect the prices to remain high. Mr. Gardiner : That is so, sir, but we are introducing a stabilising element. He added that the world’s supply of pigs was not keeping up to the consumption. The demand was growing faster than the supply. He had heard of offers this month of 9£d per pound c.i.f. and this was very favourable. The consumption of pork in \ England at present was greater than | before the war. | To Mr. Topham, Mr. Gardiner said i he was not quite clear whether they ' could ship choppers, but he found he 1 could not get them past the inspector. He, however, was interested in a firm ( of pork sausage makers. They were ' also watching the Italian market, j where a very fat pig was wanted, but so far there had not been sufficient to j warrant any drastic fiction, j In reply to another question Mr. ! Gardiner said pigs were under the Moat Control Board, which deducted i-id per pig levy. | To Mr. J. L. Faulkner, Mr. Gardiner said the average price of 6.66 d per pound paid by the co-operation would mean a price of a fraction over 6’d to the Waikato after railing to ’ Fielding. ’ At the conclusion of the meeting a " A’ote of thanks Avas passed to Mr. Gardiner for his address. ■ | AT HAMILTON. At a meeting at HamiLton on Fri--1 (Continued in Next Column.)

day, convened by the Farmers’ Union and' addressed by Messrs. Gardiner and C. D. Dermer (Cheltenham), approval of the principles of the scheme Avas expressed and it was decided to call a meeting of dairy companies interested to further the matter.