The Daily News MONDAY, DECEMBER 13. THE BACON INDUSTRY.

Taranaki Daily News, Volume LII, Issue 263, 13 December 1909, Page 2

The Daily News MONDAY, DECEMBER 13. THE BACON INDUSTRY.

Surely never did farmers so quickly reap the "reward" of their poiinv »:■■■ policy than in the ease of tin-' bu-iin industry in this district. When tini's were fairly good with tlie industry, tinopposition buyers wore in a position hj, pay a fraction of a penny more per l!i than the co-operative factory fell deposed to* oiler, the farmers, with h unanimity that gladdened the heart .if the ontsidc concerns, starved their o-.vn factory into liquidation. It was nut from want of warning that they thin-' deliberately stultiiied themselves; fr.i-n the public platform and in the Press the farmers were continually urged to remain loyal to their own factory. hi doing so, no one was acting antagonistically to those large outside concerns that had extended their buying operations into the district. In our opinion, we held that the resultant competition was good for the district in that it stimulated pig-raising, and thus increased the farmers' returns at comparatively little increase in expense. The fact that new linns entering the district were prepared to pay a slightly higher than ruling price in order to ou tain a footing in the market was too much for the average producer to legist. They refused to see that wkh competition killed, they would have no choice of markets. They see now. 'A'e arc not of those, however, who hold that advantage is being taken of tile position by bacon buyers. The market, as ever, ie ruled by the law of supp:y and demand, and at the moment, owing to the great increase in production end the decrease in the number of curing houses, supplies exceed the capacity and requirements of the latter. Naturally, therefore, prices are readjusted. Accordingly we do not say that had the co-operative concern been in existence farmers would bo obtaining bigger prices for their pigs, but, on the other hand, tliey would have the satisfaction of knowing that they were getting full value according to the existing requirements of the market. With this knowledge, the idea of reducing supplies that is at present prevalent, would not have occurred, for it would have lieen quite apparent that greater facilities lor handling the increasing supplies was all that was wanted. To our mind, the position is quite clear. Last year the Christchurch Meat Company were large buyers all over Taranaki, and to m.-i-H the requirements of the trade, a lar.<e increase took place in pig production. This season, however, the company withttrew from business in 'the XorMi Island, with the result that the oilier big outside firm, Dimock and C0.,-are unable to handle their own usual supp'.v and what the Christchurch firm put through in addition. That the supply of pigs is in excess of the existing facilities fo,- handling them is shown nUo by the action of the co-operative companies elsewhere in the province receiving from shareholders only. Clean v. therefore, if the present rate of production is to be maintained—and it oii;.M to be, for the temporary drop sliou'd not cause anyone to lose faith in this the best side line on the farm—addition, al facilities for handling the raw miterial must he provided. We do not see why the co-operative company should not tie revived, and with every prospect

• successful career. With the vpi;>'w- available, there, is plenty of room for its operations without interfering al all with the .business of the other llr.ns lint it will assuredly fail, as it failed .."- fore, unless shareholders in il are loy.il. Were it a fact (which, as we have indicated, wc doubt) that the present, pri.-u k below the true market value, farmers have only got themselves to blame. There is nothing to be gained by bemoaning the circumstances, but they afford a lesson that should not lie 10-t on those who are bow trying to revive the local factory.