“Disgusting and Inhuman”

Sun (Auckland), Volume I, Issue 123, 15 August 1927, Page 1

“Disgusting and Inhuman”

Trade in Immature Veal

Little Profit in the Industry

r SPITE the fact that it is undenied that much of the meat packed does not come up to the requirements of the British authorities, the grim trade in veal still goes on. New Zealand’s goodwill on the Home market is to be jeopardised, while those concerned follow the line of the least resistance. Another aspect of the question presents itself for immediate consideration. Investigations made by a SUN representative disclose little profit in the industry. Shippers, in fact, risk financial disaster.

r-DAY the man on the land is asked to sink money in the bonejess veal industry. Figures are quoted alleging huge profits to be made both out of the meat and the by-products. Only last week in the House the Minister of Agriculture stated there was £IOO,OOO in the industry for New Zealand farmers.

Few concrete facts are given. THE SUN, however, presents a few facts in the following review of the industry as carried out in the Waikato district.

The first cost on the Industry is the collection and purchase of the calf. To-day the price of the beast is, approximately, 6s a head. In the Hawke’s Bay district, where many lambs are carted to the works in motor-lorries, experience has proved that there is little profit in the freighting under Is a head. Lambs are collected at the one stopping place without bargaining. Seeing, therefore, that the calves have to be picked up in small lots all over the district, and the lorryman has to act as buyer, it is only reasonable to assume that Is a head will be the absolute minimum charge for collection. Thus, landed at the works the calf costs at least 7s. F. 0.8. CHARGES Batchers charge 6d a head for killing, while 7d a head is charged for boning. Other charges make an aggregate f.o.b. cost of 2Jd a lb on the packed meat. As the average weight of the meat taken from the calves going through the Horotiu works at the present time can be taken as somewhere in the vicinity of 151 b, at this figure the average a head killing, boning, packing, freezing anl railage, f.o.b. cost, is approximately 2s 9Jd. Thus, before the meat leaves Neaw Zealand the lowest cost to the shippers is in the vicinity of 9s 3|d a head. Additional charges have yet to be met, however. Freight accounts for ,81d. Insurance. exchange, London storage, and agents’ selling commission of 2 pef cent, all have to be met. The exporter would, in fact, be lucky if he quitted the meat on the Home market at a cost of much under 11s a head. Office and other alministration expenses, usually high in a cooperative concern, would also have to be accounted for. THE CREDIT SIDE Against the debit side place the. possible credit. Those in the business assess the price of the skin at 4s 6d. No figure has been quoted publicly as to the London parity of the veal this season. THE SUN understands from reliable sources that it is worth little over 4d a lb. Give the value at sd, however, and 151 b of rolled veal

works out at 6s 3d; thus 10s 9d a head.

There are additional “perks.” certainly, but the tongues are only valued at 2d. while for the bones the Auckland Farmers’ Freezing Company offers less than 1-Sd a lb.

These figures are not fictitious. They are based on actual experience and fact. Shipments of veal have previously been made from this country, and, though it was older and of better quality, it failed to return a profit to the exporters.. Yet the farmer is asked to take over existing companies, while the Minister of Agriculture talks airily of big money to be made. PROFITS FROM BY-PRODUCTS Much has also been said of the profit to be made from the by-products. One company has even gone to the extent of publishing a circular which, wilfully or otherwise, gives the alleged return for calves-foot jelly and gelatine at considerably more than the retail price in Auckland. No account is taken of manufacturing costs, and the fact that no such factory could be expected economically to retail its own product. Admittedly there is a demand for well-matured choice veal on the Home market. As a white meat it is an admirable substitute for chicken pies and fancy packed meats. It is all a question of costs. PAST'EXPERIENCE Experience in the meat trade in the past, however, has proved that unless there is a fair margin of profit, experiments are likely to prove costly to the promoters. All sorts of contingencies arise. A falling market when the meat is landed, corresponding with the slightest defect in the meat, is likely to see the whole shipment rejected. Many firms have gone under for the same reason. New Zealand is exploiting no new market. Argentine has been in the business for years. The position to be considered is this: It is clear that there is no big money to be made out of the trade for the shippers. Is it worth while, therefore, carrying on with an industry which must inevitably harm the country’s name on overseas markets? A country is not judged on its best but on its worst efforts. “Disgusting and inhuman,” said a well-known local butcher alluding to the trade. “When a butcher speaks like that,” he added, “it must be bad.” Yet, the trade goes on. Few face facts. The day of reckoning must come, however; in the meantime, on with the slaughter.