THE CITY MILK SUPPLY

Press, Volume LXXIII, Issue 22083, 4 May 1937, Page 10

THE CITY MILK SUPPLY

INVESTIGATION BY EXPERT COUNCIL'S DECISION PROPOSAL FOR MUNICIPAL i SCHEME A full investigation of the present system of milk supply in Christchurch and a report on the possi* bility of establishing a municipal supply scheme will be made by Mr R. E. Herron, manager of the Wellington City Milk Department, for the Christchurch City Council. This decision was made unanimously by the council at its meeting last evening on the recommendation of the council's milk committee, which submitted a letter from Mr Herron setting out the lines of the proposed investigation. Mr Herron originally undertook to carry out this work at a fee of £ 152 10s, but he has advised the council that in the event of his being-asked to undertake a similar investigation for the Dunedin City Council he will reduce this fee to 100 guineas. The report of the council's milk committee stated that it was understood that the Dunedin City Council has now made a request to Mr Herron on these lines. "A Necessary Report" Cr. M. E. Lyons, who moved the adoption of the committee's report, said that it was necessary to nave a comprehensive investigation of the milk supply question, and Mr Herron ■was practically the only man In New Zealand with the practical experience necessary to do the work satisfactorily. The fee was substantial; but the extent of the task was considerable, and the report was necessary. The Mayor (Mr J. W. Beanland) said that while it might be considered desirable to secure a report from an authority who would have no bias toward a municipal or any other form of supply, it was very doubtful whether Buch a man, with the necessary qualifications, could be 'found. The desirability of the report being made from a wider viewpoint than the mere municipalisation of the supply was.discussed by Cr. W. S. GibbonCr. J Guthrie; Mr Herron is a large-minded man, and I am sure his report will cover all aspects of the question. His knowledge has ■> beengained from a lifetime of experience in the industry. The fee will be a mere bagatelle if iie is able to keep us o.i the right lines in this question. Cr. T. H. Butterfleld said he thought Mr Herron might not recommend a municipal supply at all, He was not Deing asked lor a report on how to municipalise the supply, of Christchurch, but for recommendations for the best way to organise the milk industry in the city. j?

'Condition of Industry Cr. F. D. Sargent suggested that the council obtaining the report. He had reason to believe that the trade might be able to: organise Itself in such a way as to make-It unnecessary for the council to do anything. He felt that co-ordination and pasteurisation were necessary and must go , hand-in-hand, but that might be brought about without any action by the .council. In his reply, Cr. Lyons said he Was endeavouring to keep an open mind ■ about municipalisation. When the proposal lor a municipal milk supply was ... before the. council in 1928, the milkmen had declared that they were capable, of running their own business and of supplying a good article to the ■ public. Since then conditions had Changed and how they declared that the council must act A milk coun- ’ cil had been suggested as the solution but this scheme, as it operated In Auckland, at least, had been condemned by everyone who had investigated it impartially. The report of the committee was approved by the council without dissent

INFORMATION TO BE SOUGHT

MR HERRON'S PROPOSALS "IMPROVEMENT ON PRESENT WELLINGTON SYSTEM" The investigations he considered essential before reporting on the proposal to establish a municipal milk supply in Christchurch were outlined by Mr R. E. Herron, manager of the Wellington City Council's Milk Department, in a letter placed before the Christchurch City Council at its meeting last night. Mr Herron said his inquiries would be most exhaustive, m, view of the importance attached to the establishment of such an undertaking in Christchurch, and he would have in mind that many of the proposals would be critically examined by those likely to have a financial interest in the undertaking. Mr Herron said he would wish to obtain the following information, relating to the operations of producers during the year ended March 31, 1937: (1) The average net return a gallon of milk sold as market milk; (2) the average net return a gallon of milk sold for conversion into sweet cream, or separated and sold as sweet cream; (3) the average net return for surplus milk separated and sold as butter, cream, or manufactured into butter; (4) the respective quantities of milk marketed or used under (1), (2), and <3) hereof; (5) the amount of milk produced daily respectively at the lowest and highest points of production; (6) the use made of the by-product, viz., skim-milk; (7) the present facilities for transporting milk to its place of delivery. Co-operation of Producers He would not have the time personally to obtain the required information from each of the individuals concerned, but he suggested that the information might be obtained with the assistance of the Producers' Association and by the submission of a suitable questionnaire to each of its members. In any case, he would want to confer with the committee of the Producers' Association in order to obtain its views on the various matters connected with the inquiry. He would then endeavour to evolve for the mutual benefit of the producers and the undertaking, a system of zoning a milk-supply area or areas on a co-operative pooling basis, with a view to: (1) Equalising production as far as possible so as to keep surplus milk to the lowest point possible; (2) economic use being made of the by-product, viz., skim-milk; (3) the adoption of the weight and butter-fat method of appraising the value of milk; and (4) the settlement of the prices payable from time to time by negotiation, or, failing agreement, by arbitration. "Pertaining to the operation of the producer-vendors, I would want, if possible, to obtain for the year ending March 31, 1937, the following particulars:—(l) The average net return a gallon of milk sold as market milk. (2) The average net return a gallon of milk sold as sweet cream; (3) tha average net return for surplus milk separated. and sold as butter, cream, or manufactured Into butter; (4) the respective quantities of milk marketed or used under (1), (2), and (3) hereof; (5) the amount of milk produced daily respectively at the lowest and high: st points of production; (6) the use made of the by-product, viz., skim-milk; (7) the average net return a gallon of all milk produced; (8) the amount of milk purchased from other producers or dairymen, and the price or prices paid therefor; (9) the average gallonage of milk delivered- daily by each v. hide; (10) the type of vehicle or vehicles used for distribution. "After conferring with representatives of the producer-ven-dors, il would endeavour *tO evolve a ss|<pe whereunder the • producer-ven-dorifiwould Obtain a net return a gallon, of milk sold at least equal to the present net return. Dairymen Vendors "As affecting the dairymen vendors, for whom there can be no place in a municipalised scheme," Mr Herron added,-"I would want, if possible, to ascertain, pertaining to each existing business, the following particulars:— (1) The capital Investment in land, buildings, and plant and dairy equipment; (2) the average daily gallons of milk and cream disposed of:—(a) By sale retail; (b) by sale wholesale: (c) by sale as school milk; (d) by sale otherwise; (3) the price paid to producers for milk marketed as whole milk for both summer and winter seasons; (4) the price paid to producers for milk separated and sold as sweet cream; f5) the average Selling price of milk and cream sold both by retail and wholesale; (6) the owners estimate of the amount of goodwill that would be expected in the event of the business being taken oyer. m "Assuming that the required information were obtainable, I would then want to estimate the probable cost to the undertaking .of taking, over the capital assets of the existing businesses, also the amount, pay able, for goodwill. Establishment of Scheme "In addition to dealing with the interests of producers, producer-vendors, and dairymen, I would want to investigate and report upotttt the following matters dealing with .the establishment of the undertaking:—(l) The availability of the essential supplies of milk; (2) the method of appraising the value of milk obtained from the producers; (3) the grading and testing of milk; (4) the transportation of milk to the plants of the undertaking; (5) the inspection of dairy farms; (6) »fhe licensing of producers; (7) the grades of milk and cream to be disposed of; (8) the method and means of distributing bottled milk; (9) the sale of milk from milk-shops; (10) the system of obtaining payment. for milk and cream disposed of; (11) the special features necessary to the dairy in the testing, treatment, and bottling of milk: (12) the location -of the . essential buildings required as offices, dairies, distributing depots, country balancing station, and factory; (13) the conditions of employment and wages payable in the industry; (14) the capital investment necessary to the undertaking; (15) the consumer in relation to a safe milk supply, service, and price; (16) any other matter that might arise or require to be considered, by direction of your council. "If I am entrusted with the investi-i gation, I would endeavour to evolve a system that, in particular, would be an improvement on Wellington's present system in relation to the control of the producers, and the licensing and. competition from producervendors, and, in general, would appeal to! your council as being essentially practical ajid worthy of adoption." SUPPLIERS' PETITION REQUEST FOR MUNICIPAL SCHEME A petition from 96 producers of milk for the city supply, praying that a municipal milk supply scheme be put into operation as soon as possible, was presented to the Christchurch City Council at its meeting last evening. "The petition is fairly brief, but it has a good deal of point," said the acting-chairman of the council's milk committee, Cr. M E Lyons, who explained that the petition set out that the "impossibility of continuing to supply milk at the "present uneconomic prices" was given as the reason for the petition. On Cr. Lyons's motion the petition was referred to the milk comrnittee for consideration and a report.