INQUIRY ON PRIVATE SALES OF EGGS

Press, Volume XCIX, Issue 29232, 16 June 1960, Page 20

INQUIRY ON PRIVATE SALES OF EGGS

“I, like many others, have recently noticed in your paper that I am liable to a fine up to £lOO or three months’ imprisonment if I sell my surplus eggs.’, says a correspondent, “Puzzled, in a letter to the editor of “The Press.” “Instead. I must take them to an egg floor, whatever that is, or, I suppose, give them away. May I ask: (1) Why I. or anyone else, am not permitted to exchange my surplus eggs for butter and sugar at the grocer’s? (2) Why I become a criminal liable to the above-mentioned penalties if I do? (3) Who made this law and when? Is it a local by-law or statutory law? (4) Does someone, eg., the egg floor, have the monopoly over eggs, and. if so, why? (5) Does the monopolist get all the profits.” The general manager of the New Zealand Poultry Board (Mr A. C. Bridle), to. whom this letter was referred, replies:—

“Naturally we do not desire to become involved in a lengthy newspaper argument with correspondents; as a general statement in ‘The Press' dated May 27 sets out the reasons for the establishment of an economic central egg distributing organisation in order to consistently service the main urban areas.

“The distributor is licensed under the powers of the Egg Marketing Authority Regulations, 1953. The Egg Marketing Authority is charged with responsibilities to the consumer and to the producer. To the consumer it is called upon to provide a regular and adequate supply of good quality eggs throughout the year, and to the producer a reasonable price for his product. “It must be recognised that most regulations designed to benefit the majority can adversely affect the interests of a

few. At the same time the licensed egg distributor’s commission. retail selling margins, wholesale and retail prices are all subject to the control of the Price Division of the Department , of Industries and Commerce. ’ "The cost of poultry feed comprises approximately 62 per cent, of the poultry farmer’s production costs and wheat prices are fixed by the Government. The poultry producer, therefore, receives the balance from sales after deducting costs and his income is subject to taxation. “Eggs handled by licensed distributors are subjected to a pooling arrangement and any surplus is held on behalf of the suppliers, and does not become a profit to the central distributint organisation. ‘The form of trading followed by ‘Puzzled’ is not a method by ‘ which urban areas can be adequately served with eggs compared with a regular service from a central distributing organisation of a product quality-graded, priced according to this grade, and guaranteed both for size and quality.”