MILK FOR SCHOOLS

Evening Star, Issue 23325, 22 July 1939, Page 20

MILK FOR SCHOOLS

CONTRACTS AT LESS THAN GUARANTEED PRICE [Per United Press Association.) WELLINGTON, July 21. In a statement issued after a meeting of the executive of the New Zealand Town Milk Producers’ Federation in Wellington to-day it was stated that the arrangements made by the purchasing otticer of the internal Marketing Department in connection with the supply of milk to schools—sometimes at figures below the guaranteed price that would apply if it was sent to a factory and converted into butterfat — were being used as bargaining points with full-time regular producers of milk for both town and school purposes. It was explained that the purchasing officer travelled the Dominion malting contracts tor the supply of milk to schools.

It was admitted that as a general business principle it was the duty of an employee, either State or private, to secure the best price in making a deal on behalf of his principals, but it was not conceded that contracts should be entered into by a State department, the effect of which was to accept a price which in terms of the butterfat equivalent was below the guaranteed price, and which was used as a bargaining point in subsequent negotiations with companies or organisations of those regularly engaged in milk production for town supply. In many cases those with whom the arrangements were made by the department’s officer were not dairy farmers, but independent operators who secured supplies for school contracts from various small farmers, getting a reduction in the price at the same time by reason of the fact that the milk was for the schools. If the same milk were to be sent to a factory and converted into butterfat or cheese it qualified for the guaranteed price, but the equivalent at which it was sold to the department by these operators was less than the guaranteed price. The type of operator referred to was also not in a position to carry out his obligations for continuity of supply. It was contended that the Government department, or its representatives, should in future meet recognised bodies of producers when negotiating for a supply of school milk, such procedure being in line with the Government’s wish that all engaged in production, either principals or employees, should organise. Another decision related to an endeavour to further the interests of producers’ milk for town supply by securing a uniform price for different districts.

It was announced that the Director of the Interna' Marketing Department (Mr E. R. P c. t) had arranged to meet the federation’s representative shortly. Members expressed the opinion that the matter was one of such far-reach-ing importance to dairy farmers that the Minister concerned should also meet them at the same time as Mr Picot, or independently. The federation elected the following executive for the ensuing year —President, Mr J. J. Maher (Wellington) ; vice-presidents, Messrs R. H. Ockleston Auckland) and J. R. D. Johns (Christchurch) ; executive—Messrs D. R. Hoggard (Wellington), A. Hardham (Wellington). W. J. Taylor (Rahui), and R. C. T. Raine (Nelson).