DOUBLE THE OUTPUT

Evening Star, Issue 19952, 23 August 1928, Page 6

DOUBLE THE OUTPUT

PBOfHECY FOR DAIRY INDUSTRY PRODUCERS BLAMED FOR DIFFICULTIES TOOLEY STREET MERCHANT’S OPINIONS. While ho largely blamed tho New Zealand dairy producers for tho trying time they had experienced, through their begrudging tho distributors their remuneration for services, Mr A. J. Mills, head of a prominent Tooley street firm, declared to-day that the outlook for tho dairy industry was brighter than it had been for many years, lie prophesied that within the next twelve or fifteen years New Zealand would double its production, and the lot would bo taken by the consuming countries of the world. A highly interesting talk on the dairy produce markets of tho world and on general trade conditions was given by Mr Mills this morning, when he was entertained in the lounge of tho Tudor Hall, Savoy, by the Dunedin Chamber of Commerce.

The President (Air E. A. Kosovcar; expressed the double pleasure of the members at meeting Mr Mills, as few business visitors from overseas had included the southern part of New Zealand in their itineraries. The people in the south considered that those visitors had nut seen the dominion. (“Hear, hear.”) Air Alills was chairman of directors of A. J. Alills and Co., one of tho world’s largest dairy organisations operating in Tooley street. Air Mills had been associated with the New Zealand produce trade for forty years. His firm had been first known under another title, but Alills and Co. were probably the largest individual handlers of Now Zealand produce in tho world. Air Alills bad occupied the position of chairman of the London Prodor • Evobanye and of the Meat Trade Charitable Association. During the war he was one of tho members of tho Alinislry of Food, and visited America to take charge of foodstuff purchases for the Allies.

“ It is always pleasing and cheering to meet such bodies of business men wherever you go, either in your own town or in such far-away countries as New Zealand,” said Mr Mills, who regretted that the short notice had not allowed him time to prepare an address touching on more' vital subjects. By meeting each other, business men could gather information of mutual interest and. ho hoped, learn something from each other so as to enable them to carry on their businesses on different lines.

One. of the problems that faced them at Homo, and it was particularly a problem of the dairy produce business, in which New Zealand was so interested. was the finding out just how the New Zealand producer wanted to market his goods and what was his viewpoint towards the organisations at Homo engaged in distributing his goods. Those who were familiar with the dairy industry knew that the industry had been through a rather difficult time, which was not altogether the fault of the people at Home. The difficulties had boon brought about by New Zealand itself in its efforts to get into a bettor position in marketing its produce. That was quite a laudable object, and it was quite a correct lino of thought that the producers should have a say, and a very material say, too, in what should be done with his produce, how it should bo sold, and the price which should bo obtained.

A LABOURER AND HIS HIRE. “ But the producer, whether it is of dairy produce or any other goods raised from the land, must understand that somebody else lias to eat the produce,” said Mr Mills. “He cannot eat it all himself, and he must not be too grudging in his appreciation of the work of the other fellows conveying his produce to the consumer. The producer in this country, which produces everything in such lavish quantities, should not grudge the other fellow a reasonable remuneration for the work he does, because in every walk of life the labourer is worthy of his hire. He deserves something for the work ho puts in conveying the produce to the mouths of (be consumers at Home and elsewhere.” Air Alills said he was rather of the opinion that a good many of the troubles of the dairy fanners had been brought about through their trying to stop the oilier fellow from getting a little for the work he performed. He thought that opinion was the correct one. The produce had to bo distributed very extensively in England, Scotland, and Ireland. It had to be conveyed to the consumers through the retail shops, and that distribution was as much a science as the actual producing. The establishments had been built up from many years of experience, and applied themselves to the economic distribution of foodstuffs at Home. They were valuable to the producers, and Air Alills wanted them to realise that they were one of the necessary needs of his work, mid that without'the distributing organisations the producers would have a very muck harder row to hoe. ‘■'Wo sometimes wonder how the dairy producers really want to sell or dispose of their goods,” said Air Mills. “ They have been through the trials and tribulations of control, which, unfortunately, did not turn out as well as was anticipated. To-day, after that knock', it seems that they are on a very much better wicket. Their produce is more sought after than ever before, but owing to the blows they have received the producers seemed to ho entirely unable to appreciate that they aro going to have a better time. For the first time in my career I have met producers in New Zealand who aro perfectly satisfied with the prices they arc obtaining.”

FLOOD OF CONTINENTAL PRODUCE. “ My opinion is that, for tho dairy industry, tho outlook is brighter than it has been for many, many years,” said Air Mills. “ The consuming countries of the world are not keeping pace with their production. _ England, for example, notwithstanding tho increased spending power on the part of the working class, ini]»orted less butter last year than for the three previous years". That invasion of Russian, Siberian, and Eastern butter, which was going to flood the country and make it so difficult for New Zealand to compete, has not yet come about. And I do not think it is likely to eventuate for some time. Due of the main reasons is tho uncertain political situation in Russia, calling for a necessary hestianey on the part of any outsider to put capital into that country to develop the dairy industry as it should be developed as a national resource. Again, Germany is getting into a much better economic position all the time. For many years the peasantry and working classes in Germany have been in the habit of eating American lard in tens of thousands of tons. This lard has been spread on their bread in , the same way as we spread butter, which is a. national food in England. During the last three or four years the Germans have developed a taste for butter—and wo cannot blame them—and to-day Germany is importing one-third of the Danish production. It is also importing from Sibera, Latvia, Poland, and the surrounding countries, the bulk of the surplus. That surplus, which we all felt would have to come to England, is being tapped so largely by

Germany before it reaches England that our total imports are now less than they were three years ago.” FUTURE FOR NEW ZEALAND, When it came to cheese, said Air Mills, New Zealand was on a most exceptional wicket. Canada was its only competitor, but the imports from Canada to the United Kingdom had decreased since 1917 by 50,000 tons. The New Zealand producer would therefore appreciate the need of distributing to get his products into the tens of thousands of retail shops all over the Old Country so as to continue in everincreasing quantities the production of butter and cheese. He believed that New Zealand would double its production in the next twelve or fifteen years, and the whole would bo wanted by the consuming countries of the world. (Applause.) Mr Mills said ho hoped the business men of New Zealand, like the dairy farmers, were satisfied with .trade conditions. On his return to England he would be able to present to the general traders a very happy picture of the economic situation in the dominion. He understood from many leading citizens that there was still a good deal of competition, and that the traders could not do all that they desired. But New Zealand was tho most favoured country in the world in its natural products, and whatever the present difficulties might be, he was sure that tho people could go ahead with the confidence that the country would prosper. New Zealand was only beginning to realise what it meant to assist nature, and within the next few years the increased productivity would astound them. New Zealand’s competitors in the world’s markets had to hand-feed _ and house their cattle for six months in the year, and, owing to the wonderful climatic conditions, that was not necessary in tho dominion In the north he had seen the progress made through the application of fertilisers to the pastures, and the effect would be a most material increase in production. TRADE IMPROVING.

“My opinion of trade in the Old Country is that we are slowly but ( surely getting on to better _ times,” said Mr Mills. “We have still many problems, and one of the hardest is coal. During the lamentable strike many people found out that less coal could bo used, and to-day wo are suffering from a want of buyers lor the coal wo can produce. I was on the Continent at the time of the strike, and some of the Eastern countries were iu great Jubilation at our unfortunate position. The unfortunate strike has recoiled very heavily on those people who _ brought it about with the hope of improving the conditions of the men, and to-day there is a large army of men out of work. Trade neighbours at Home inform me that they aro satisfied that general conditions are improving. Wc find in the foodstuffs business that credit is good. Our buyers are as sound as or sounder than wo have ever known them to be, and wo have every right to bo enthusiastic about the next few ; years’ business. I can only hope that ] you will feel the same, and that this i country will push you along to do . better than before.”

On the motion of Air A. It. Allan (vice-president of the chamber), Mr Mills was heartily thanked for his address.

Replying, Mr Alills said Now Zealand, owing to its superb climate, produced the finest goods in the worldThe grading of the produce by the Government graders was excellent, and no produce imported to England stood up to grade bettor than Now Zealand’s. In addition to Germany increasing its consuming powers, the United States was rapidly approaching the time when it would need more butter and milk foods, and ho foresaw a steady expansion of New Zealand dairy produce exports to the States, despite the exorbitant protective tariff against the produce.