BACON INDUSTRY.

Shannon News, 7 December 1923, Page 4

BACON INDUSTRY.

PRICES RECEDING.

Mr. P. J. Small, of Palmerston North, one of the best-known men in the pig-breeding and rearing industry throughout the Wellington province, made ajvery interesting statement to a “ NeW Zealand Times ” reporter on the present state of the industry, and its prospects for the future. " There is certainly an increase in. the number of pigs throughout the province, for more people are going in ;for them. So far as the present-day high price's are concerned, they are more of an injury , the farmer than otherwise, 1 because in the district we have men who breed for sales to the fatters from sows, and , through the high prices • ruling—which are likely to drop within a short time, for i£ is on the downward tendency now—these men have spent a lot of money stocking up in weaner pigs, which have cost them from 25/- to 30/- a time. If a serious drop takes place, it means that these men will be practically nothing. The price of bacon pigs at present makes it impossible to export at a profit, as as high as lOd. per lb has been paid for them, and for the bacon companies to make a profit at that price the consumer has got to pay out of all proportion to the ■ general cost of living. Fluctuating markets and high prices in the early part of the season, with a serious fall afterwards, is not in the best interests of the dairy farmer. LOOKING FOR STABLE PRICES.

“ What he is looking for is a stable price, so that he will know exactly what he is doing as he goes ®n. ; The uncertainty of the present position is a menace to increased production, and is likely to deter men from operating in the business. . Taken over a long period, most,farmers have got the biggest portion of their pigs ready for ,the market, and this is the time when the lowest price is paid, which is too low to cover cost of production. CO-OPERATION THE KEY. “In my opinion the only way t o solve the problem is for the farmer to go in co-operative works and produce and handle the raw material. I mean a co-operative bacon factory. This principle has been the means of increasing production in every part of the world where it has been tried and has given adequate returns to the producers. PROSPECTS FAIRLY GOOD. “ Immediate prospects are fairly good for there are some strong companies operating. It has been a severe winter, and the setback in the weather in the last week or tw.o, with cold and lack of sunshine, has brought about a decreasing production of but-ter-fat, and the stock are not doing so well as in the . early part of the season. It is also delaying the crops, for the ground is ready, but the farmers cannot get their crops in."