THE BACON INDUSTRY.

Taranaki Daily News, 4 September 1917, Page 3

THE BACON INDUSTRY.

POSITION IN SOUTH TAKANAKI. Considerable discussion took place at the annual meeting of the Hawera Dairy Company on Saturday regarding the advantages or otherwise to bo derived from joining the New Zealand Farmers' Bacon Company. The matter was introduced by Mr. Ogle, who moved that the companv join the Bacon Company. He pointed out that he had supplied a number of pigs and had lost considerably through the dairy company not being a shareholder. The chairman said that the position had been threshed out last year. They were told that it would only cost them £4OO to join, but they would have to take up shares to the value of about £IBOO on the basis of the share for each ton of butter or two tons of cheese. If they joined every industry their contingent liabilities would soon become very large. He considered it would be very unfair to call on those suppliers who did not g'o in for pigs to join a company for the -benefit' of those who did. Those who did supply pigs could, as individuals, take up 20 shares and then supply as many pigs as they liked, but they should not ask an institution like the Dairy Company to' join. Mr. Dawson: Individual shareholders have to pay more for their shares. The chairman said the directors had considered the matter and decided not to join. He had personally supplied pigs to the Bacon Company and had lost the bonus, but he blamed no one. f A supplier: Other factories have joined. The chairman: Other factories have cut down their share basis to one share for each 0Q or 70 lbs fat, but ours is still I2olbs. Mr. BUrk then seconded the moti<|£' Mr. W. C. Henson stated that he was a shareholder of the Bacon Company and favored tho company joining, though he would not benefit. Mr. Mills stated that the majority of the present directors favored joining the Bacon Company. Though personally a shareholder he considered tho company wa3 making a mistake in not joining because by standing out they were penalising their shareholders, who had to pay extra for shares. This was the first attempt made to place the bacon industry on a good footing by the establishment of a strong company. He pointed out that such a company saved to the producer the cost of paying two or three competitive buyers, also the railage of the pigs in different directions. Small and i financially weak concerns could not hold their produce and when a slight slump | came had to place their produce on the market, so reducing the price all round. Moreover, they only received tUeir psfs during a period of the year, and a financially strong company could afford lio hold them so as to regulate the supply on the market the year round. A supplier considered that it was unreasonable to join the Bacon Company jinler.3 (hero was unanimity. All were producers of butter-fat, but all were not producers of pigs. Mr. J. R, Corrigan pointed out that the majority of the South Taranaki dairy factories that 'were in the Bacon Company were previously in the South Taranaki Bacon Company which had amalgamated. Mr. Spratb, jun., stated that as a member of Xormariby Dairy Co. (a shares holding company) hp had supplied pigs and had received 3d and a bonus of %d from the Bacon Company, whereas tho previous year when there was competition he had received G%d to C 3 Bacon was if anything dearer this year. Farm, ers were interested in the pig and not in the bacon, save that bacon might become so dear that people would bo unable to purchase it and would buy something cheaper. He considered that there was danger of a monopoly lowering the price paid to tho producer and raising the price to the retailer. After further discussion the resolution on being put was easily defeated.