MILK COUNCIL.

Auckland Star, Volume LXIV, Issue 206, 1 September 1933, Page 8

MILK COUNCIL.

PRODUCERS' AIM. GOVERNMENT URGED TO ACT. « LOW PRICES RUINOUS." A resolution strongly urging the : Government to give the necessary authority for the setting up in Auckland of a milk council was carried unanimously at the annual meeting of the Auckland Whole Milk Producers" Association, held in the Chamber of Commerce this morning. A telegram was read from the acting Prime Minister, Mr. Coates, to the effect that he concurred in the proposal and would be pleased to help in the solution of the present unsatisfactory position. Mr. G. F. Williams, who presided, said that for the last three years the price paid by the vendors to the farmers bad been inequitable. Up to three years ago and for seven years previously an Order-in-Council had operated, fixing the price to be paid to the farmers at 50 per cent of the retail price of milk. The average price for contract milk during the seven years was 1/ a gallon. Three years ago the vendors refused to continue on that basis, and from then conditions had become worse. In March last year the vendors reduced the pay-out to Id a gallon for contract milk, and 3 : Jd for surplus milk. Government intervention was opposed by the vendors and then a milk war started.

The trade had got into a deplorable state and the. vendors, for their own protection, joined the executive of the Producers' -Association in an appeal to the Citv Council, urging Government intervention. ! The Hon. Mr/ Cobbe had come to Auckland with. a. .view to settling the trouble, but his advice to raise prices was not accepted by all the vending interests, and, although a slight rise in price had taken .-place, the position was still ruinous to the farmers. Two Factions. Mr. "VV. H. Madill said regulation of the milk industry and price fixation had been successfully introduced in Canada and the United States. It was unforlunate that there- should be two factions in Auckland representing the farmers' interests. As far as East Taruaki was concerned there was only one solution —they wanted all the producers to join them. A good deal had been done already in connection with the setting up of a milk council. Cheap milk to the public had meant ruin to the farmers. The last six months had proved that conclusively. Co-operation, .co-ordination, and consolidation of interests and services were essential. East Tamaki would be well advised to support the milk council. The stabilisation plan of the past had been a misguided attempt to bolster up an unsound position. All sections must recognise that the present system of distribution was uneconomic. Economy must start at the cowshed, and be continued to the consumer's home, and the milk council was the only practicable solution. There was a quantity of milk produced close to-the city at .the-present time which was '" isolated " —squeezed out by milk from further afield. Without proper regulation and control, chaos would result. In co-ordination of services it was not. necessary to have such a block system of- delivery as 'to completely eliminate competition. Resolution Carried. On the motion, of ..Mr.' J. S. Moritgomerie, the following resolution was carried unanimously:—"That this meeting of farmers supplying the city with milk-again strongly urge that the. Government give immediate authority for the election of a council to control the sale of milk in the metropolitan area." Mr. Montgomerie said that under the present system if the cost of distribution were added' to the cost of production, the consumer would never be able to pay the price that would be required. The milk council Would enable the industry to bring about co-ordination >in the collection and distribution of milk. Tamaki as a group was afraid of any system which would spell uneconomic cost of distribution. A resolution was carried' instructing •the incoming executive again' to approach the-Tamaki farmers with a view to persuading them to agree to the setting of a, milk council.' ■ v j