DAIRY MARKETING

Dominion, Volume 27, Issue 34, 3 November 1933, Page 13

DAIRY MARKETING

Steps for .Improvement

BOARD’S PROPOSALS

(Change in Export Licenses

“As. there appears to be a great deal of misunderstanding regarding the new dairy marketing proposals, we wish briefly to set out the exact position,” says Mr. T. C. Brash, secretary o£ the New Zealand Dairy Produce Board, in a statement issued yesterday. He proceeds to explain the proposals as follows ■ “In January of the present year the. board received. from its London man-

ager a cable conveying a recommenda- / ■ tion of the advisory committee of the New Zealand Dairy Produce Importers’ Association of the United Kingdom, to the effect that some action .was necessary to prevent the practice of selling consignment produce tinder current prices before the arrival of .the steamer carrying the produce, and unknown to the dairy company that owned the produce. This committee maintained that such practice had the effect of continually depressing the market. When Mr. W. A. lorns, chairman of the • board, left for London early in March he had the instructions of the board to ascertain from the merchants what they considered necessary to give effect to their recommendations. “Mr lorns Interviewed a number of the merchants and asked for sugges tions. Following upon this, the New Zealand Dairy Produce Importers’ Association set up a committee to consider the problems of marketing After a number of meetings the committee put forward to a full meeting of their association certain proposals which were '■unanimously adopted for transmission to the board, ’ ( ! Safeguarding Interests. “When Mr. -lorns returned to New Zealand the board considered these proposals, and after making.some amendments intended to safeguard the inter; ests of the industry, the board submitted the proposals on September. 20 to the Dominion Conference of 45 delegates, accredited representatives of dairy companies appointed from the different wards throughout the Dominion. This conference heartily supported the proposals. “In the main these proposals provide; (a) That in co-operation with the dairy companies the board shall allocate consignments.to the merchants. • It goes without saying that this willbo done with ns little dislocation as possible. ’ (b) That the board shall be supplied with full particulars of prices at which consignments are sold, with dates of sale, etc., together with par- . ticulars of all stocks held. (c) Regulation of f.o.b. sal.'. The board has placed on record a decision that this particular regulation shall'be so handled that, f.0.b,. or e.i.f, sales, either for immediate or. forward shipment, ahull be made possible. (d) That merchants handling NewZealand dairy produce in Great Britain shall .do so under license issued /by the board. A number of the conditions have been suggested by the Importers' Association, and .others ■ by the board, and, again Jet,us say, solely, with, the idea of safeguarding the ‘interests'of. New Zealand dairy producers. - The issuing of these licenses will naturally be' discussed ■ with the London importers, and clr«. cumstances are bound to arise from time to time which will make reconsideration of the ■ conditions necessary. New Conditions. “To'enible the new marketing couditlons to become operative certain alterations will require to be made in the license under the terms, of which' dairy companies and proprietors nt s present ship their produce. These licenses are issued by the Minister of Agriculture, subject to such conditions end restrictions' as may be approved by the Dairy Board. The new conditions for export licenses will provide that the board will have certain control over the allocation of consignments and the regulation of f.o.b. or c.i.f/ sales in New Zealand. Provision will also be made to prohibit sales of consignment produce unknown to the dairy company prior to the arrival date of. steamer, thus seeking to prevent a practice which so seriously undermines the market. “The board is moving toward amendIng the conditions of the present license held by dairy companies, but it is un; likely that any of the regulations will come into operation for the current season, except perhaps provision to secure returns, account sales, dates of sales, etc., and to seek to prevent the practice of selling consignments' prior to the arrival of the steamers at less than current market prices, which tho merchants indicate is continually depressing the market. ' Desire for Harmonious Working. “To assure dairy companies of the earnest desire of the board to establish conditions that can be worked harmoniously with the merchants and to retain their goodwill, the board sent the following cable immediately after its last meeting on October 26:— “Board going forward to securing necessary regulations to put into operation marketing proposals agreed upon. Date of commencement not yet fixed but unlikely any portion of the regulations will take effect until next season. Convey to Importers' Association assurance of board's readiness to discuss through deputation or by letter any clauses with a view to. securing hearty co-opcration of al! interests and making arrangements to work amicably." “A few days later it was learned that certain interests in New Zealand (not dairy companies or producers) were sending cables to the New Zealand Dairy Produce Importers’ Association In London which appeared to be intended;to create friction between the board and this association, and the board again cabled with a vldw to removing any doubt ns to Its anxiety to co-operate. The cable was as follows;—- . “In order to avoid any feeling on the part of importers that board intends to act in any way arbitrarily again assure them 'that board fully realises that success of the proposals absolutely depends upon hearty co-operation of importers, hence board willing to discuss any clauses of the proposed regulations with the intention of making them satisfactory to both parties. Although board at present moving to secure necessary regulations from Government, this is only to - enable general powers to be obtained. These general powers will not include any details whatsoever, which will be a matter of arrangement between merchants and board.” “To this the following reply has been received: —> . . ', j “Importers’ Association ask us send following message: ‘lmporters’ Association appreciate your cables and reciprocate assurance full co-operation, would appreciate prior submission to us of draft regulations to be asked for by you to enable to confirm principles and submit • any amended details earliest possible should such be necessary.”’ "To this the following reply w sent: "Advise importers their assured eo-

operation heartily appreciated. Conditions which board are establishing here take the form of additional conditions in the licence under which dairy companies are at present exporting. will provide that licenses will be granted subject to additional conditions:—(l) Board will have power to allocate consignment outputs. (2) There shall be given to the board copies of account sales with all particulars of date of sale, etc. (3) The board shall have power to regulate f.o.b. or c.i.f. sales. (4) Provision to enable board to deal with practice of consignments being sold unknown to dairy companies prior to arrival date of steamer, The terms ot conditions of license between the board and the importers is entirely one for discussion and arrangement between board and importers, and will not be set out as conditions of license issued to exporting dairy companies.