MILK SUPPLY FOR SCHOOLS

Press, Volume LXXV, Issue 22769, 22 July 1939, Page 7

MILK SUPPLY FOR SCHOOLS

COMPLAINT OF PRICE PAID VIEW OF TOWN PRODUCERS’ FEDERATION (FBISS ASSOCIATION TELEGBAM.) WELLINGTON, July 21, In a statement issued after a meeting of the New Zealand Town Milk Producers’ Federation executive, Wellington, to-day. it was stated that arrangements made by a purchasing officer of the Internal» Marketing Department for the supply of milk to schools—sometimes at figures below the guaranteed price that would apply if it was sent to a factory and converted Into butter-fat—were being used as bargaining poir.l- with the full-time regular producers of milk for both town and school purposes. It was explained that the purchasing officer travelled the Dominion making contracts for the supply of milk to schools. It was admitted that as a general business principle it was the duty of an employee, either of the State or a private firm, to secure the best price in making a deal on behalf of his principals, but it was not conceded that the contracts should be entered into, by a State department, the effect of which was to accept a price which, in the terms of the butter-fat equivalent, was below the guaranteed price, and which, was used as a bargaining point in subsequent negotia-

tions with companies or organisations of those regularly engaged in milk production for town supply. In many cases, it was said, those, with whom the arrangements were made, by the department’s officer were not dairy farmers, but independent operators, who secured supplies for school contracts from various small farmers, getting a reduction. in price at the same time bv reason of the fact that the milk was for the schools. If the same milk was sent to the factory and converted to butter-fat or cheese it qualified for the guaranteed price, but the equivalent at which it was sold to the department by these oper•ators was _less than the guaranteed price. The type of operator referred to was also not in a position to carry out obligations for continuity of supply. It was contended that the Government department or its representative* should in future meet recognised bodies and producers when negotiating for the supply of school milk, such a procedure being only in line with the Government’s wish that all engaged in production, either principals or'.employees, should organise. Another decision was to endeavour to further the interests of producers of milk for town supply by securing a uniform price for different districts. It was announced that the Director of the Internal Marketing Department (Mr F. R. Picot) had arranged to meet the federation’s representative shortly. Members expressed the opinion that the matter wafe one of such far-reach-ing importance to dairy farmers that the Minister concerned should also meet them at the same time as Mr Picot or independently. The federation elected the following executive: — President. Mr J. J. Maher (Wellington); vice-presidents Messrs >R. H. Ocklestqn (Auckland). J. R. D. Johns (Christchurch): executive, Messrs D. R. Hoggard (Wellington), A. Hardham (Wellington). W. J. Taylor (Rahui), and R. C. T. Raine (Nelson).