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Dáil Éireann debate -
Wednesday, 24 Nov 1954

Vol. 147 No. 7

Committee on Finance. - Adjournment Debate—Grading of Bacon Pigs.

At question time to-day I asked the Minister for Agriculture:—

"Whether he is aware of the general dissatisfaction prevailing in regard to the rigid grading of bacon pigs, and, if so, whether he will have an inquiry held regarding the working of the system to ascertain whether the reduced prices paid for heavier pigs are passed on to the consuming public in all cases."

The Minister informed me, in reply, that he was not aware that there is any foundation for the statement made in the first part of the question:—

"The position is that the purchase of pigs by bacon factories and pork exporters is on a freely competitive basis and the prices paid for the various weights of bacon pigs reflect the preference for lean bacon both on the home and export market.

With regard to the second part of the question, retail prices do not come within my province, but I would point out they have been the subject of a recent inquiry by the Prices Advisory Body and are controlled by Order of the Minister for Industry and Commerce."

I feel sure that this House and the Minister agree that the pig and bacon industry is a very important one in rural Ireland to-day, as many of our farmers and, indeed, many of our cottiers have to depend to a large extent for their livelihood on the pig industry. I maintained at question time to-day that these pig producers are being exploited by the bacon factories and, as a result, the bacon factories are reaping a rich financial harvest.

In reply to a supplementary question, the Minister made it very clear that a preference should exist as between the different grades of pigs; we all agree that that position should obtain. The reference in my question is to the rigid grading system that obtains and it is on that system that the bacon factories cash in and make their big profits. Now every Deputy knows that this was a very difficult year so far as pig production was concerned. It is agreed by all that for the summer months and the early months of the year there was not a single penny profit made by pig producers. They were producing pigs uneconomically and, that being the position, I believe there is an obligation on the Minister for Agriculture, whoever he may be, to ensure that these people are treated with justice and given fair play.

In raising this matter to-night, I want to make it quite clear that I regard the present Minister for Agriculture as as good a Minister as we could have. I believe he is most interested in the pig and bacon industry and that he is endeavouring to be as helpful as he possibly can to promote the interests of pig producers generally. It is in that spirit that I raise this matter and not in a spirit of trying to attack the Minister or find some fault with his administration. Any criticism I have to make of the Department of Agriculture so far as pig producers are concerned is entirely constructive.

I was amazed to-day when the Minister informed me that he was not aware that any dissatisfaction exists. I believe that he himself produces pigs and he must be a very fortunate man indeed if he is not dissatisfied with the prices he has received over the past few months from the bacon factories unless, of course, being who he is, the bacon factories treat him generously and give him some special consideration. In my opinion that could be the only reason why the Minister is not aware of the grave dissatisfaction that exists.

He informed me in reply to-day that pigs are bought on a competitive basis. Does not everyone know there is no such thing as competition in the pig market? Has not all that been done away with long ago? The pigs are bought as the bacon factories desire they should be bought. They lay down the terms and the producers have no say whatsoever in relation to those terms. I would like to inform the Minister, if he is not already aware of it, that when a pig producer in County Cork—I am sure the same applies in Roscommon—has pigs for the market, he sends them to the bacon factory and he must have them there at a particular time; they are graded; they are weighed; the price is marked down and the producer has no say whatsoever as to their grade, weight or price. If he disagrees with the weight or with the price he is told to take his pigs away. That is the position that obtains in every factory. I am convinced that in most factories there is a ring or combine working against the interests of the producers. Do not for one moment think there is such a thing as competition in the pig market to-day, for it is not there.

I have received from various pig producers, mainly small farmers and cottiers, many letters of complaint about the way they are being treated by the bacon factories in Cork. These are all responsible people and, having examined these letters and understanding the problem, I am satisfied their complaints are justified. I have been asked during the past few months to bring this matter to the notice of the Minister. I do so to-night in the strongest possible language at my command because I have faith in the Minister. I believe he will inquire into the allegations I make on behalf of pig producers all over Ireland.

Now the consuming public has just as big a complaint because everyone knows that, despite the fact that there was a sharp decline in the price of pigs at the factories, particularly during the spring and summer months of this year, no such reductions were passed on to the consuming public. It is a peculiar position that while farmers and pig producers are selling pigs at an average of 1/5 per lb. the consuming public here in Dublin City and in many provincial centres have on an average to pay 3/6 per lb. for bacon. Of course, in many cases, for the better cuts the price was 4/2, 4/4 and 4/6 a lb. Is it not a function of the Minister for Agriculture, in conjunction with his colleague the Minister for Industry and Commerce, to inquire where this differentiation went to? Into whose pockets did the difference of almost 2/-a lb. go? Surely it must have gone to the bacon factories. If it did not go to them it went to the wholesalers and then if it did not go to the wholesalers it went to the retailers. I am informed by many shopkeepers that they have got no benefit whatsoever from this system.

I understand that if you sell a pig weighing 9 st. 13 lb. to a bacon factory you get one price and if you sell a pig of 10 st. 1 lb. to the bacon factory you get another price. In the summer months, there was a difference of as much as 10/- between the prices of two such pigs. I should like to know if the Minister ever bought a 10 st. 1 lb. pig as against a 9 st. 13 lb. pig because in no shop in Dublin City or throughout the country was there anything such as grade A, B and C pigs: you paid the very same price for the pigs. The only price differentiation was in relation to the different cuts. I believe the Minister is aware of that fact and, if he is not, he should be aware of it. This rigid system is working against the producer and, at the same time, it is of no advantage whatsoever to the consumer.

For the past two years, the Cork County Committee of Agriculture have discussed this problem. We asked the bacon factories in Cork to receive a deputation from the committee of agriculture with a view to greater co-operation between the bacon curers and the pig producers. We asked that, in fairness, the bacon curers should make known their prices every day of the week. We got no co-operation whatsoever from these people. They told us it was no concern of ours even though the Cork County Committee of Agriculture represents the agricultural interests of the county. These people were able to ignore that body because of the monopoly they have in the bacon trade at the present time and because of the ring and combines which they have formed between themselves. This has been going on at least during the year 1954. Complaints are being made all over and, indeed, many individual complaints have been made to the Department of Agriculture. I object, then, to be told here in the middle of November that the Minister is not aware of any dissatisfaction whatsoever among pig producers. Is it not quite evident that they are dissatisfied when, during the past two months, there has been a decline of 50 per cent. of the pig population of this country? If my figures are correct, the number of pigs has declined by about 50 per cent. in the past two months because the pig producers are now satisfied they cannot deal with the bacon curers. They feel that the bacon curers have complete mastery of the position and, consequently, that they will not get any satisfaction. The result is that the pig population is declining and unless adequate steps are taken to safeguard the producer it will dwindle still further. It is mainly on this line that I raised this question on the Adjournment to-night.

I have given to the Minister, briefly, a statement of what I believe is the position so far as the pig industry is concerned. My information is based on the most reliable sources. It comes from pig producers. I know hundreds of them. I know a good deal about pigs, about the difficulty of producing them, about costings, and so forth. I say here as a Labour representative that the man who produces a pig is entitled, as a self-employed person, to a fair and just deal—just as much so as any other self-employed man or wage-earner is. He is not getting that square deal at the present time. I believe the obligation is on the Department of Agriculture to see to his interests. The Minister may, in his reply, state that the position is improving somewhat. The position is improving somewhat because the number of pigs is declining. The bacon factories now know that if they continue to pursue the policy which they pursued when pigs were in plentiful supply—particularly during the summer months—they will have to close down altogether. Part of my question seeks to have an inquiry held into the working of the system to ascertain whether the reduced prices paid for heavier pigs are passed on to the consuming public in all cases. In the circumstances, it was reasonable to demand this inquiry. The consuming public were entitled, when the prices were drastically reduced, to a reduction in the prices which they had to pay for bacon to the shopkeepers and others. So, both the producer of bacon in this country and the consumer got a raw deal—and it is the middle people who are doing well out of this business.

I suggest that the Minister tell the House his opinion of the position. I want him to state clearly whether, in his opinion, the bacon curers are giving a fair and square deal to the pig producers and also whether or not he is satisfied that the margins of profit of wholesalers and retailers are justifiable. Further, I want him to state clearly what he intends to do to enable this industry to continue—an industry which is giving so much self-employment to many of our people and which is so helpful to small farmers and cottiers and other people in the country.

The Minister is entitled to ten minutes. However, the debate on the Adjournment did not begin until two minutes past nine. Therefore, Deputy Mrs. O'Carroll can have two minutes.

I am speaking to this motion of Deputy M.P. Murphy because I have a similar question down for answer to-morrow. My question is framed something like this: Will the Minister consider holding an inquiry into the bacon factories with a view to seeing if they are working in the best interests of the producers and the consumers? I did not know that Deputy M.P. Murphy had a question down on the Adjournment and he has very kindly given me some of his time, We had a cold, airy-fairy dismissal by the Minister to-day at question time of any responsibility on his part towards the consumer. It is this passing of the buck between the Department of Industry and Commerce and the Department of Agriculture, over the years, that has led to this dissatisfaction between producer and consumer. Every time the price of an agricultural commodity was questioned, the Department of Agriculture said that the function of the Department of Industry and Commerce is to deal with prices and, on the other hand, the Department of Industry and Commerce said that it is the function of the Department of Agriculture to deal with prices of agricultural commodities.

I am very glad that Deputy M.P. Murphy has raised this matter in the manner in which he did. I should like to add something still further for the Minister's education or to enlighten his ignorance in regard to the dissatisfaction which exists by pointing out to him that during the weeks in the middle of the summer when bacon prices to the producers reached a low level, there was absolutely little or no reduction to the consumer and, for once, the retailer did not get it either. I have here factory prices quoted by one of the bacon factories to retailers for three weeks. It is significant that when they would reduce one particular side of bacon or particular type of cut they increased the price of another one.

You have here for August 23rd: Wiltshire leanest, 300/-; Gammonless leanest, 300/-; and then you have for August 30th: Wiltshire leanest, 295/-; Gammonless leanest, 302/-. I might point out that in the three weeks when the price of pigs to the producer steadily decreased, the price of lard from the bacon factory was 140/-, 150/- and 160/-.

On behalf of the consumers I would like to add to Deputy Murphy's appeal for a public inquiry. If the bacon factories are all right an inquiry cannot hurt them. There is a need for such an inquiry to end dissatisfaction. I submit to the Minister that not only have the factories exploited the producer in a most despicable manner this year, but they certainly have not given either the consumer or the retailer any benefit. There is not a single part of the pig they have not sold except perhaps the squeak, and they will probably sell that to Radio Éireann. They sell the hide, the bone meal, the tongue, the feet, the head, the sausages; they are all priced here and all the prices fluctuate. When they are compelled, possibly because prices are widely known, to reduce some parts, the other parts increase.

I suggest we allow the Minister in now.

I hope the Minister will listen to Deputy Murphy's appeal on behalf of the producer and mine on behalf of the consumer.

Deputy Murphy is quite right when he says the pig industry is very important to this country and he and I have a right to look back with pride upon the fact that it was the pig and bacon agreement—which the Government he and I supported in 1951 made in May, 1951—that has secured the pig industry as a prosperous industry in this country ever since. I said there was no general dissatisfaction in regard to the grading of pigs. I do not think there is because our farmers have come to realise that there is no place for the fat pig any more. The production of the fat pig in this country means ruin for the farmer who produces it. Our farmers are as up-to-date and as progressive as any farmers in the world; they have accepted that fact and they are at present doing, in my opinion, an excellent job in producing and supplying to the factories the vast majority of their pigs in a suitable condition for conversion into top grade bacon.

It is true there was dissatisfaction for about six weeks during the period of peak production and I do not complain of that, but the dissatisfaction amongst the producers in Ireland was nothing compared to the dissatisfaction amongst the producers in Northern Ireland and Great Britain. We were able to boast that every pig tendered to a factory in Ireland was taken, slaughtered and paid for at a period when in Northern Ireland and all over Great Britain one pig out of every five tendered by the farmers of Great Britain and Northern Ireland to their factories was sent home. Deputies should recollect, therefore, that we were able to take, slaughter and pay for 100 per cent. of the pigs offered in this country at a period when we were being tendered up to 40,000 pigs a week and when one of the largest proprietary factories in this country, controlling 18 per cent. of our total slaughter capacity had walked in to me and announced that they were going to close down during the whole period of peak supply. In spite of that we accepted, slaughtered and paid for a greater number of pigs per week than at any time in our previous recorded history. I do not blame the producer for feeling a certain dissatisfaction. When they know the facts I think they will realise that their fortune compared with that of the producer in Great Britain and Northern Ireland was very good.

What is the real solution of the problem raised by Deputy Murphy here to-day? There is only one real solution and that is that the farmers should cure their own pigs. Until the bacon industry of this country is controlled by the co-operative movement representative of the farmers who produce pigs, we will have recurrent cause for complaint. If Deputy Murphy inquires amongst his neighbours he will find I did not content myself by giving nothing more than good advice. I have offered help and encouragement to the farmers of West Cork, to the farmers of Limerick, to the farmers of Tipperary and to the pig producers all over Ireland to undertake the co-operative processing of their own pigs so that they can ensure, through the management of their own factories, that substantial justice is done to the farmers who produce pigs.

Let there be no illusion about this. My job is to get for the producers of pigs in this country the best price I can get for them wherever they get it. So long as I am in this job that is what I am going to do and nobody will stop me doing that. That is what I am here to do and I am doing it, and not only for a selection of the pigs produced but for all the pigs produced. Deputy Murphy and I ought to boast of the fact that it was we made the agreement that made it possible to do that and it was something our predecessors were never able to do. There is something our predecessors were very glad to have, that is, their feather bed to lie on. We provided the tick, put the feather in it and they lay on it for the last three years. Let us do a little jumping on that feather bed because it was we made it. It is because of what we have done that the pig population of this country is standing at as high a figure as it ever stood. Do not let us forget when we took over in 1948 there were two ounces of bacon per person available in this country; we were not able to provide bacon for our own people. Now we are able to produce all our people require and ship hundreds of tons abroad at prices that enable us to pay the pig producer of West Cork up to 240/- a cwt. for every pig he brings in.

I am not going to be put into the position of defending the proprietary bacon factories in this country. I have got enough persecution from the proprietary bacon factories—not all of them but some of them—to make me refuse with vehemence the task of being their champion in this House. Nevertheless facts are facts and it is true to say that the most recent figure I have suggests that prices ranging from 240/- down to 200/- is being paid for pigs——

By some factories probably.

—according to grade and that during the same time prices for bacon have fluctuated between 300/-and 274/- a cwt. according to quality. You have in one factory 300/- being quoted for leanest Wiltshires, 296/- for lean sides, 280/- for what they call prime sides and 274/- for stout sides. There is a relationship between the prices charged by the bacon factories and the prices paid for pigs, but I will go this far with Deputy Murphy—I am not satisfied the producer got a fair deal during the whole of the period to which he referred, but I am satisfied that the only effective way to put an end to these abuses is not to hold futile inquiries, because I know without any inquiry that the only effective way to put an end to this abuse is for the pig producers to cure their own bacon and take control of the bacon industry. Until that is done the producers in this country may expect to get, from time to time, a raw deal.

In so far as within me lies, when the attempt to give them a raw deal is being made, under existing circumstances I will endeavour to make it possible to cook the deal and prevent it from being raw any longer. But there is no use in pretending I can do it effectively under existing conditions —I cannot. There is only one effective method to prevent the sort of thing of which Deputy Murphy complains and that is to have the farmers cure their own bacon. The sooner they do that the better for us all.

The Dáil adjourned at 9.30 p.m. until 3 p.m., Thursday, 25th November, 1954.

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