DAIRY CONTROL.

Press, Volume LXIII, Issue 18947, 11 March 1927, Page 12

DAIRY CONTROL.

ANONYMOUS CRITIC'S ALLEGATIONS. 85 PER CENT. OF STOCKS STILL ON HAND. (E7 CABLE—F-.ZSS ASSOCIATIOS— COPrKIGBT.) (Sydkey '"Sin;" Service.) LONDON, March 9. ''The- New Zealand Dairy Board's control policy has resulted in the biggest fiasco ever known in trading circles," said a prominent market authority. "]t will liave catastrophic consequences on New Zealand's basic industry. What Mr Coates foretold in a cabled warning in November has now happened. If New Zealand producers had acted on Mr C'oates's advice. instead of attacking him politicfilly for pointing out the unwisdom of the Board's policy, they would have been now in a happier position. The sooner producers face the crisis the sooner they will amend their policy. "It is estimated that the producers are likely to lose £2,000 000 this season. Tt will take two or three years to recover the position held here prior to contfol. New Zealand methods have antagonised the whole trade." The same authority added that the Australian Board drew up a scheme of co-operation with traders with whom they worked harmoniously, whereas New Zealand drew up its own academic scheme, and imposed it upon trade regardless of its impracticability. The contrast between the two schemes was shown by the fact that Australian stocks were cleared as they arrived, but New Zealand sold only 10,000. tons out of 60,000 destined for the British market. "At present 10.(XX) tons are stored here, including a portion of December arrivals." he said. "The alarming thing is that, with four of the best selling months gone, New Zealand still has 85 per cent, of its stocks on hand and will meet the keenest comfietition with the Northern Hemisphere's spring output when prices are very low.

"The impasse is due firstly to the Board's holding policy of keeping limits above sales point; secondly, to the strong antagonism of wholesalers and Retailers to price fixation by the Board, which dictated to traders instead of co-operating. They gambled for a rise, being thus virtually guilty of the same sfjeculation for which they formerly criticised traders. Wholesalers and retailers refrained from buying except when forced to, because the fixed prices were unprofitable. Similarly, the wholesalers refused to handle New Zealand butter because they said it was the same price for large quantities as for a few boxes. Traders sympathise with the Board's original intention to secure continuity of supplies, but the policy was overdone and failed. Some producers are likely to be faced witli substantial claims on account of over-advances against supplies."

TWO YEARS' WARNING. MR AGAR'S PROPHECIES. 'T stumped the country for two years warning producers as to the facts of control," s;iid Mr C. P. Agar, manager of the Tai Tapu Dairy Co., last night, "and now, in seeiug the realisation of my prophecies on that occasion, I can only regret that my fears were accurate, and express regret at the effect it will have on the producer and. the country. Nothing but the abandonment .of . control will, in my opinion, establish, the- goodwill of the trade, without which we cannot look, for the prosperity which has attended the 'lairy industry of the ppsfc. 1 '