SAVING TO PRODUCERS

Evening Post, Volume CXIII, Issue 57, 8 March 1932, Page 10

SAVING TO PRODUCERS

NEW DAIRY INSURANCE

In order toassist producers by lowered costs the New Zealand Dairy Produce Board has been negotiating with the underwriters of their marine insurance contract with a view to obtaining reduced rates of premium. The board is now advised by their London manager that after considerable difficulty he has been able-to renew the contract for; a further three years from Ist Sejrtraujb'oiv.iiext at the following rates:—But^i<^.fe.'Mot "per cent; cheese, 7s per ceni. Vs tfhe previous rates were 7s per cent. and^Ss 2d per ceut respectively. . '.-.-;

The special point about the.'new arrangement is that underwriters .'have agreed, that, the above rates shall be retrospective. and shall apply to dairy produce shipments from Ist January this year, thua-immediately benefiting producers. The reductions, which work out at 10 per ..cent, for butter .and 14 per cent, for cheese, are exceedingly gratifying. as, the, board was very apprehensive, in view of general increases in premiums on refrigerated cargo which have taken place since last contract was entered into. The reduction reflects the savings to underwriters through the board's system of inspection of shipments and discharge conditions _in : London, the continuance of which is essential to the insurance contracty as well as the benefits obtainable through ■ unified . control and rationalisation of "this portion of marketing costs. The value of the reductions can be set down.as approximately a saving of £7000. per annum to the industry. The average rates ruling on the board's inception in 1923 were: Butter 9s 6%d per cent, cheese 11s 4d per cent, with Is 9d per cent extra for transhipment. Comparing these with the new rates, a reduction of nearly £40,000 per annum to the industry has been effected. This is on the basis of present low prices, but on'higher prices a greater saving would be shown. . The contract now completed insures the produce against loss from "any risk whatsoever," from the time the milk.or cream is received at the factory, with the exception that milk or cream while in the factory.: is covered against fire risk only. One proviso in the new- contract, however, is that should serious damage be caused by a further earthquake, underwriters reserve the right to charge an additional premium for earthquake risk thereafter.