The Daily News TUESDAY, FEBRUARY 27. THE BACON INDUSTRY

Taranaki Daily News, Volume XLVII, Issue 8057, 27 February 1906, Page 2

The Daily News TUESDAY, FEBRUARY 27. THE BACON INDUSTRY

It may be said that pork raising—the natural corollary of dairying—is I almost indigenous to Tarauaki, and |it would be thought that the success that has attended the operations of the prime industry would relied itself ou the former. Unfortunately, however, while the dairy companies have been almost universally successful, the bacon companies, with few exceptions, have experienced a long period of adversity. The past year lias proved no exception to the rule, and almost every balance-sheet reveals the same unenviable position—a dead loss on the season's operations. Various reasons have been assigned by the dif-

ferent companies to account for the losses, anil while in a few instances there were exceptional circumstances, in no case were they sullicient to account for the whole of the losses. In cases where the greater proportion of the losses was due to one particular cause, experience has shown that no guarantee can be given that the circumstances will not recur. In the first place, especially m South Taranaki, there is far too much competition amongst factories for supplies of pigs. This might not have been the ease were all the concerns operating in the district, run on the eft-operative principle, but private concerns compete largely for the fanners' custom. As there is not a plethora of pigs offering prices are inflated to a figure that the

co-operative companies have found to their cost, leaves no margin for profit. Then again a great deal of the bacon cured iu Tarauaki has turned out badly, and sonic oE the factories have sustained heavy losses ou that account. Money has also been lost iu the selling market. Factories finding themselves overstocked have rushed their hams and bacon on to the market at at a reduced figure in order to quit, and save the yossibility of further shrinkage in weight and loss in quality. The market at all times is a comparatively restricted one, and while probably markets can be found for the whole of the companies' output, want 1 of captial in most instances compels directors to Hear as quickly as possible. The price given for live pigs is higher thau the position of most of the companies, and the state of the market warrants. Consequently the margin allowed for factory expenses and trade charges has been quite inadequate making no allowance for losses, and the inevitable has happened. In the aggregate, however, the losses are not serious, but if they are to continue there must be a day of reckoningIt seems to us that the fault primarily lies with the farmers themselves, who have not been as loyal, on the whole, to their own co-operative factories as they might have been. Intances could be cited where shareholders have gone past their own company with their pigs aud sold them elsewhere because some outside concern was offering a slightly better inducement. Unfortunately it appeal's impossible to get some farmers to realise what a "penny wise, pound foolish " policy Ihcv arc pursuing. If by reason of su-h practices and others which militate against the success of

the co-operative concerns, they are forced lo the wall—and a number of factories are almost in thai position—how will the farmer fare ? As surely as he will lose the capital he has invested in bis co-operative company, so will the price of pigs be reduced by the surviving concerns. The establishment of the co-operative bacon companies in Taranaki has created a market for the larmers pigs, for which he was at one time glad to take half the price he now gels. The circumstances, with the local factories out of the way, would be exactly the same. While we believe that there are too many factories in the province, and that one huge co-opera-tive concern in a central posilion w julil have given lar more satisfactory results, and established a record of uniformity of quality that at present does not exist, there is still 110 reason whv they should not pay. If the farmers remain loyal to their concerns, and supply them with well topped-olf raw material, and the directors and managers do their duty in reducing the cost of manufacture and making a succesful cure, the bacon industry will yet be established 011 a basis as secure as the butter concerns.