DAIRY CONTROL

Auckland Star, Volume LVIII, Issue 114, 17 May 1927, Page 16

DAIRY CONTROL

MR. COATES' EXPLANATION.

WARNING CABLE JTJSTITISD.

HOME MARKET IMPERILLED. (By Telegraph.—Press Association.). DARGAVILLE, Monday. The Government's attitude toward the dairy control scheme was reviewed by the Prime Minister in his speech this evening. Mr. Coates said he had already issued two statements which he thought were sufficiently explicit in regard to his attitude and actions during his visit to London last year. "Notwithstanding these statements, a campaign of misrepresentation regarding myself and the Government is being persistently carried on," he continued. "The Leader of the Opposition (Mr. Holland) repeats certain information on which he places an interpretation which, in his opinion, will best 6uit his own political cause. His object is to discredit myself in the eyes of the farming community." Mr. Coates first of all denied that he was in league with Mr. Stronach Paterson, and asserted his belief that Mr. Paterson had no ulterior motive. Why He Intervened.

"My own connection with the matter," said Mr. Coates, "arose only after I became convinced of the serious position in which the New Zealand dairy producers might be placed by any move likely to place their products at a disadvantage as compared with similar products in the Home market. My conclusions were reached after information had come into my possession from many reliable sources. There are those who say that Mr. Paterson's cable to 'the board was sent with my approval. Such a statement is incorrect. The cable

was not sent with my approval, though I knew of it. The telegram sent by myself to the Government of New Zealand expressed by far the bulk of the opinions which had been conveyed to me from very many reliable sources. "I challenge any person with a knowledge of the position founded on fact to controvert the conclusions at which I arrived. Having then formed my views and, in spite of possible misinterpretation on the part of producers, I decided to acquaint the Government in the Dominion of the position as I saw it, especially as I had. like most people, a keen appreciation of the extent to which the Dominion's prosperity is linked up with the dairy industry. Not Hostile to Mr. Wright. Mr. Coates denied that he was hostile to Mr. W right, the Hoard's manager in London, and said in conclusion: "1 think my fellow-producers will do me the justice of believing that both as Prime Minister and as one of themselves 1 am actuated only by a conscientious desire to enhance the welfare of the farmer and all other sections of the people. "I take this opportunity of adding that in the event of the New Zealand Dairy Produce Export Control Act again coming before Parliament' I am of the opinion that the word 'control' should be altered. This term creates an impression that tends to prejudice our product* in certain markets. I suggest as an alternative that a more suitable term would be the New Zealand Dairy Producers' Co-operative Marketing Board, or some other sore appropriate designation." «

PROBLEMS OF MARKETING.

AIM OF PRICE FIXATION.

The marketing of primary products and its problems was dealt with exhaustively by Mr. W. Grounds, chairman of of the Dairy Produce Board, in an address to members and guests of the Accountants' Society last evening. The speaker avoided matters of a coutrocersial nature, and considered "th« fact that he had been asked to address the gathering as a distinctly hopeful sign in that representatives of important organisations were anxious to know more of the problems of dairying and become acquainted with the position. He prefaced his remark by tracing the growth of the industry, saying that thirty years ago New Zealand exported only 2428cwt of butter and 3056cwt of cheese. In 1891 the quantities were increased to 39,430cwt and 39,000cwt respectively; in 1901, to 183,000cwt and 109,000cwt; in 1911, to 3G7,ooocwt and 456,000 cwt; in 1921, 476,000cwt and 1,208,OOOcwt; and in 1920, to 1,156,000cwt of butter and 1,347,000cwt of cheese. The figures indicated the magnitude of the development of the industry, which certainly had provided some of the major problems. The Dominion's progress had gone on side by side with that of other countries in the Southern hemisphere, such as Australian and the Argentine. One of the primary difficulties was the distance of New Zealand from the market and the attendant matter of handling the produce. These difficulties to a large extent, however, had been overcome.

The desire of the board was to use direct methods, and it did not advocate the establishment of retail shops —the connections already established formed the soundest means of distribution They had heard, and quite rightly, a clamour for sales of New Zealand produce under their own brand. As the first step towards this end the board had registered and had begun to advertise the national fern leaf brand. Some people believed that in doing so they were scrapping the goodwill that had been established by the factory brands. This, however, was contrary to fact, and a scheme has been devised whereby the factory brands maintained their identity in spite of the fern leaf scheme.

Reference was also made by the speaker to the board's effort in regard to insurances and shipping, and he explained that in the latter regard the ports of call of vessels for loading had been limited, so that the individual factory incurred no loss or enjoyed no gain from prompt or slow shipments. If reservations were going to be made to maintain a supply all the year round, the board must see that no unfairness was created in these matters.

In regard to price fixation, the board—' with 20 per cent of Great Britain's supply of dairy produce—had never aimed nor dreamt of controlling prices. All it aimed at was to control its own prices in harmony with ,the market level, and to control the agents so that no danger would exist from the produce competing against itself, TCie board did not contend that a policy of such magnitude, covering such wide interests, could be organised with 100 per cent efficiency at the outset. But viewing the whole of the disabilities and recognising all the factors of the case in the light of recent events, he was sure the board's policy as laid down was the sound one to adopt.