NEW REGULATIONS

Waikato Times, Volume 127, Issue 21176, 27 July 1940, Page 15 (Supplement)

NEW REGULATIONS

MARKETING OF EGGS PRODUCERS’ PROBLEMS Ever since eggs were produced in any considerable quantity the need for some degree of market organisation has been felt, first, to protect the producers from the operations of speculators, secondly to protect consumers from exploitation and stale eggs, and thirdly to control supplies of eggs so as to eliminate unnecessary price fluctuations. The majority of poultry keepers sell direct to retailers, but this system has many disadvantages. Individual firms seldom handle sufficient eggs to dispose economically of any surplus, thus the usual method followed is to bring down prices to levels unprofitable to producers. Since it is in the interest of retailers to procure their eggs as cheaply as possible, cases have occurred of poultry keepers being played off, one against the other, as a means of beating down the price. Another disadvantage is that few retailers take the trouble to grade or test their eggs. Stale eggs coming on the market have the effect of reducing consumption, since a bad egg on the consumer’s breakfast table frequently results in a disinclination to purchase eggs for some time. Common Practice For many years it was a common practice for speculators to buy up large quantities of eggs in the spring, hold them in cold store until the autumn for sale as “fresh” eggs at a profit of 100 to 200 per cent. Firms conducting operations in egg pulp have been known to advertise a quantity of eggs for sale at an extremely low price in order to force down prices in their area. The moment this was achieved they would buy extensively for the production of cheap pulp. In short, so many abuses have crept into the handling of eggs that strong agitation has been going on for years among producers for Government intervention and the necessary powers to organise the egg market on co-operative lines. The first step in this direction was made with the passing of the Poultry Runs Registration Act in 1933, which provided funds which were administered by a Poultry Board. Next came an attempt to organise the industry, and in 1934 the Poultry Producers’ Federation was formed.

Initial Difficulties Considerable difficulty was encountered. Of 180,000 owners of poultry only 18,000 kept 25 birds or over, and of these fewer than 5000 are commercially interested in the industry. However, membership grew to 1600, branches were formed in most centres and a conference of delegates has been held annually in Wellington ever since. Each conference has passed on to the Government a large crop of resolutions dealing with the need for a marketing scheme, a stock foods bill and a host of other matters dealing with the industry. The resolutions met with the fate common to such resolutions and producers had practically given up hope of ever making their voice heard. Many attempts were made by poultry keepers to organise their own market co-operatively with varying degrees of success. In Auckland and Wellington agreements were reached with the large egg merchants and marketing committees were formed composed of producers and agents to exercise some control. An Egg Circle is functioning in Otago and for the past three years quite an efficient marketing organisation has existed in Hamilton. Unfortunately, these examples have not been generally followed and over the greater part of the Dominion chaotic conditions of marketing still operate. Special Conference After having bombarded the Government ’ with resolutions for so many years without result, there was a good deal of astonishment when in January last representatives of the industry were summoned to a special conference in Wellington to consider a marketing scheme submitted by the Internal Marketing Division. The scheme was approved by a large majority and although full details are not yet available owing to a pledge of secrecy having been exacted from the delegates, it is believed that the three main features are as follows: (1) That all eggs in the main marketing areas shall be sold through licensed agents.

(2) That all eggs shall be graded and tested, retailers to sell on grade. (3) That egg pulp and chilled eggs shall be strictly controlled by the Internal Marketing Division. A member of the Poultry Board and a representative of the Internal Marketing Division will be paying a visit to Hamilton at an early date to explain the new regulations. Poultry keepers and all others interested in the trade will have an opportunity of forming thejr own judgment upon it.