“DAIRY COMPANIES SATISFIED”

Evening Star, Issue 22632, 26 April 1937, Page 12

“DAIRY COMPANIES SATISFIED”

BENEFITS OF ZONING AND AMALGAMATION PROGRESS OF EXECUTIVE COMMISSION'S WORK Economic benefits arc apparently being shown by those dairy companies which have fallen in with the. plans of the Executive Commission of Agriculture for the rationalisation of cream collection and butter manufacture in the Dominion, and companies which have amalgamated or have given the scheme for zoning supplies a trial are more than satisfied. Satisfaction with the attitude of these companies and with the rationalisation scheme in New Zealand was expressed by Sir Francis Frazer, deputy-chairman of the Executive Commission, in an interview with the Christchurch ‘ Press ’ yesterday.

“ I am quite sure that no company which has had a year of experience of the zoning system would go back to the rafferty rules under which one company raided another,” Sir Francis said, “ and companies which have amalgamated to eliminate redundant factories are very satisfied with the benefits which have accrued. Quite a number of dairies have by now given the system a 12 months’ trial, and in every case the companies have reported that the economic benefits and savings have been well ahead of the estimates submitted by the commission and much greater than expected. “ Another advantage is that zoning has allowed reorganisation on a true co-operative basis, and has saved needless competition among overlapping groups,” he added. “It has allowed the companies to effect economies, and most of all to conserve the quality of their product. I am satisfied that the great thing we have to fight for is quality if we are going to hold a place on the English market.” The commission, ho said, was making very good progress. In the North Island most districts with the exception of Wairarapa and part of Taranaki were either zoned or being investigated for that purpose, and in the South Island . some measure of work had been completed in Otago, Canterbury, and the West Coast. It was hoped that when another visit was paid to the West Coast in a month or two the commission would be able to complete the work which it had started recently.

No organised opposition had been met. most of the companies, although anxious not to suffer any loss of supply, agreeing with the principle of the scheme, he said, but there had been some opposition from the smaller groups of suppliers, who probably failed to envisage the benefits and who feared, without need, that their interests would be prejudiced.