FARMERS' DAIRY PRODUCE

Evening Star, Issue 14634, 2 August 1911, Page 8

FARMERS' DAIRY PRODUCE

! FOE THE ITOM32DAND. j THE NEED OF CONCENTRATION. MANIPULATION OF MARKETS. A large number of farmers, members of tho South Island Dairy Association, met in _ conference this morning, under the guidance of the president (Mr John Gray, of Mataura). The most important topic of ' discussion was concerning the effort made in the last year or two by the association to concentrate tic method of disposing of dairy produce in England by inducing all the lactones to put their snpj plies in the hands of tho association, whose ! sales have been .conducted by four nonspeculating agents up to the present time, when the number bus been raised to five. I In the past, it is plain thill the prices of New Zealand produce have suffered through its wide distribution for disposal I among many agents, thronch fanners selling early in the season, and through " consignments without recourse,'' a phrase i meaning that, a farmer or factory receive* an advance from an agent, who takes his chance of recouping the price paid on the Home market. It v.as mentiori.-vl that the prke for sale of butter, fixed by the association at 5;?-:!, was defeat til throuch, advances without vci'toiirse early in the season at okl, thouch later on si.d was obtained. : Mr Gray said that at the North Island 1 Conference there had been a private- discussion on the disposal of produce, a.nd thotid.l the, North, were not eye to eye with the South, they w«-re agreed upon the necessity of concentration. The South Island Association had found no need to I change the agents to whom they liad cnI trusteed the disposal of their produce, but had added a fifth agent; and what was wanted now was foT every factory to do its business through the association. The. daily industry in New Zealand was just betrinn.in<i, and the better the foundation laid now the better would the structure be. Mr Lnmsden (of Dnnnmondj said thai in oider to face the competition of other countries it was of prime importance to put New Zealand produce at the top of the. tree. He referred to the manipulation of the cheese market at Home, and suggested that they should give their agents absolute control to work in their interests. Mr Winning iMatauraj congratulated tbfl association upon the progress made towards putting all the business into the proper channel. Instead of a host, of agents coming round the country seeking the trade, he suggested that tho association should be appointed agents for the firms who were acting as. the association's selling agents at Heme. ?dr Coster (of Winton) asked: Would it not I>s belter to concentrate, instead of distrbitiing the agency among five firms? Mr Lumsden explained that, the firnts ehosen as agents had been selected with the. greatest, care, and the. first point, of. concentration was through the association, the farmers and factories putting confidence in the. association, and giving them the. opportunity of distributing all th*> produce to these firms for disposal at. best ! advantage on the maiket. Mr Bolt remarked that the association wanted, as far as possible, to work to a, uniform price, and concentration was the one method of attaining (hat. No factory should be selling at the beginning of the I season, because that tended to fix the top price for the lot. If ihe factories, before selling, would consult the secretary as to a fair basis, that would bring about tho principle of co-operation for which they were working. And if every factory that. i did not fall in with the association's idei, were to instruct, their agents to associate themselves as far as possible with the association agents, that- would do away with a. lot of trouble. Mr i'atoti i'of Corel said that they wanted lo protect themselves from being at the mercy of speculating firms. The price of cheese this season rose to 625. and then fell lo 55s or ins. just- as the Canadian product, was coming forward, showing that the market had been manipulated hv firms foe their own benefit.. He had heard that this combination had control of practically two-thirds of the output, of the l.lomtok.n. leaving only a possible third under the control of the association. And surely they did not suppose that they could govern the market when such a proportion was outside their control. Mr Fowler uif Ryall Rush) said that he believed himself to voice the opinion of four-rift hs of the factories when he said that thev would prefer to tell al the beginning 'of tbe season if the association could get- fair prices. He. believed that when the goods left the factory they should have done with them. Personally he would prefer to accept a fair price at the beginning of the season, and it would not, concern him who manipulated the market afterwards. The association might form themselves hit;, a shipping association, and send the stui'i Home, but what knowledge had tl.ev when they got, it there? Ho favored 'sale, and could willingly place his output in the hands of the association for ..;,]... And if tbe association were prepared u, receive ord< rs he v.'ould trust them i'ol the plice. Mi- l-'.i,-. !ec .asked : Why had the price of 3?d been maintained when it could not Mr l.umsdr-: said that, the trouble had been ih.i; some had t onscni'd without, recourse at riM. Hov.evcr, s ? d was afterwatd*. gut. " Mr l-"o',v!,-r : If tiev-e four or five fae-tci-i.s led not .-old without, reeoiur-, «e '] iie Ciiairiii-an enrpha.siscd the fact that a hi.; >■>■ , ■,-.-■ i small factory could m some cxi.i-nt fi \ th-' viri'-i- by giving away V.itholit, |e. OIIIMC i,i jiv-.v, ,r to (jiir-i-ii-f.. Mr Scott tarvi sau) flat he was confident thai there wa.'-. gci.eg lo be a. big price this year for iie'ic-i- aed chti-.-e. but- he di<l not think thai !he\- need worry thenar Ives about i: till tic ' beginning of Oeiobcr. Ho was going to Hi^'.'t 11 !o th, direriom that- he t-iioubi be nt "li'nei-ly a! that- ti;c- l-i vi/dt -ill the fat-tones .'-otisiar.tly. because lie hopi.-l to htac- information that would