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RATIONALISING' AN INDUSTRY

Operation of Dairy Factories progress reviewed by SIR FRANCIS FRAZER “The dairy companies have been all more or less at sixes and sevens over the collection of cream for the factories, and it is the job of the commission to straighten out the problem and cut out uneconomic practices; so {ar we have made good progress in the time we have been able to give, but there is still a tremendous amount to be done before the industry can be considered properly rationalised,” said Sir Francis Frazer, deputy-chairman of .the Executive Commission of Agriculture, in an interview yesterday. Sir Francis Frazer has come from Wellington to meet representatives of Banks Peninsula factories to-day to discuss the introduction of a zoning system for the peninsula factories. This is part of a policy by which it is hoped to eliminate wasteful competition in the overlapping of long-distance cartage of cream to the factories. The commission has met interested parties in practically every province in the Dominion and has already taken a hand in the amalgamation of several factories and defining of zones of operation for other companies. Sir Francis said yesterday that the Dairy Industry Commission of 1934 came to the conclusion that there was far too much overlapping among dairy factories and that rationalisation of the industry was essential. Not only was the overlapping uneconomic but the cartage of cream over long distances was considered likely to affect its quality Before the arrival of modern road transport many districts had use for their own local factories but by modern methods companies could operate over a radius from 50 to 100 miles and this led to violent competition. Commission’s Powers • The executive commission was set up in 1935 and had the theoretical backing of the whole industry. It was concerned with the marketing of all types of produce and had therefore not been able to give full time to the dairy factory problem, but considerable progress, had already been made. Until about two months ago the work was done on the basis of voluntary co-opcration and agreement among the different companies, because up to that time the commission had been given powers only of observance and recommendation. Since then the dairy factory supply regulations had empowered the commission to zone-areas and collecting routes to companies and close cream receiving depots established by any company at a distance from its factory and in an area adequately served by a local factory. The regulations empowered the commission to fix compensation payable to companies deprived of their supplies by those who received them. A great deal of work had been done on a purely Voluntary basis, Sir Francis said, but it was an exceedingly difficult task negotiating with the various interests over their rights. Since it had received the power of making orders the commission had still pursued the policy of endeavouring to negotiate voluntary agreements. It had not been necessary to use “the big stick.” Work Done The commission had arranged and defined zones for dairy factory companies from Maungaturota, 80 miles north of Auckland, to Paerata, 30 miles south of Auckland.* In that area nine companies were involved. Negotiations for the acquisition by co-opera-tive societies of proprietary interests in the area were pending here as in other districts. Southern and northern Hawke’s Bay had been zoned voluntarily. A number of boundary agreements had been made in Taranaki and a complete set of zones made covering the district south from Hawera to Bulls and north to Taihape. A comprehensive economic survey of the Rangitikei and Manawatu districts had been undertaken. Several meetings had been held with a committee representing 31 companies, and it was- expected that before long a plan for the whole area would be completed. In the northern part of the South Island the Waimea Co-operative Dairy Company had bought out a proprietary butter company and discussions were taking place over further amalgamations in Nelson and Marlborough. In Canterbury the Akaroa Dairy Company, a butter company, sold its business to the Tai Tapu and Central companies on a joint basis. The Ashburton Co-operative Dairy Company about the same time acquired the Mount Hutt company, and also bought the Alpine proprietary company at Timaru. ' Among the Otago factories there was overlapping into Southland as well as within their own districts. The commission defined a boundary for operation between Southland .and Otago, and fixed the rights of the two companies in the Southland iffea. ' Proposals had been made to the Otago factories for rationalisation in their district. Peninsula Problems The present visit to Canterbury arose, Sir Francis said, from a request made to the Minister for Agriculture (the Hon. W. Lee Martin) by a deputation representing Banks Peninsula co-operative cheese factories. The commission decided about 12 months ago that for economic reasons it would not be reasonable to zone the supplies on Banks Peninsula, but it was represented to the Minister that the situation had been altered since that time. He would therefore meet the interested parties to-day at Duvauchelle and hear them re-state their views. After Christmas the commission would visit the east coast of the North Island. Sir Francis said that one resplt of the elimination of unnecessary i longdistance cartage of cream would most probably be an improvement in the quality of New Zealand butter. It was generally accepted by experts that the earlier the cream was brought into the factory the better it was for the quality of the product. There was not so much objection to slight sourness as to other organisms which were likely to develop, if the cream .remained long before arriving at the factory. The shorter distance carrying would help to do away with the necessity, whicl\. arose in some cases, of giving the cream special treatment.

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Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/CHP19361221.2.50

Bibliographic details

Press, Volume LXXII, Issue 21971, 21 December 1936, Page 10

Word Count
964

RATIONALISING' AN INDUSTRY Press, Volume LXXII, Issue 21971, 21 December 1936, Page 10

RATIONALISING' AN INDUSTRY Press, Volume LXXII, Issue 21971, 21 December 1936, Page 10