DAIRY PRICES.

Auckland Star, Volume LXVII, Issue 149, 25 June 1936, Page 8

DAIRY PRICES.

LOCAL MARKETING. GUARANTEE THE BASIS PLANS NEARIWG FINALITY. ORDERLY SELLING THE AIM. (By Telegraph.—Parliamentary Reporter.) WELLINGTON, this day. Within the next week it is expected that the Government will have fixed its policy in regard to the local marketing of dairy produce, and that the Minister, of Marketing, the Hon. W. JTasli, will be in a position to make liis decisions known. There is special provision in the Primary Products Marketing Act, passed recently, authorising the fixation of the prices of dairy produce intended for consumption within New Zealand. This step is a secondary one, but is just as. important as the fixing of the prices for exported produce. The Act lays it down that the prices may bo fixed by Order-in-C'ouncil in respect of any such dairy produce, whether it has been or is intended to bo acquired by the Crown, or is sold or is intended for sale otherwise than by the Crown. Further, the Act stipulates that in the fixing of the prices to be paid to any dairy company, whether such price is to be paid by the Crown or by any private purchaser, the general purpose shall be to assure to the producer a net return from his produce equivalent to the return he would have received had his produce been acquired by the Crown for export. Also, it is intended to ensure that the consumer will be able to obtain dairy produce at a reasonable price, and that the retailer and other persons engaged in the distribution of dairy produce will receive a fair and reasonable remuneration for efficient service. Chaotic Competition. The question of' local marketing lias been prominently before the industry for many years, but particularly during the period of the depression, when keen competition by manufacturers has "introduced a state of almost competitive chaos. Various remedies have been put forward with the idea of stabilising the local price, which lias always been based on the export parity, but in view of the practical difficulties that have presented themselves none was acceptable to the industry. One of the most uneconomic features of local marketing has been the liigli cost of distribution, particularly in the North Island centres, where overlapping has been intense, and it is expected that one of the first steps that the Government will take will be to eliminate what is admitted a highly wasteful factor so far as overhead costs arb concerned. The manner in which this will be done will be awaited with interest, as will akso the manner in which the Minister proposes to stabilise the price, whether it will be at the .factory, the door or at some other stage. The general feeling is that it will be adjusted at the factory.