CONTROL BOARD

Hawera Star, Volume XLV, 2 July 1925, Page 10

CONTROL BOARD

PRODUCERS' INTERESTS FURTHER ED.

ADDRESS BY HIP. GROUNDS

Questions of moment with the Don.' Control. Board, were dealt with at the annual conference of the N.D.a. yestcidav afternoon hy Mr. Grounds. the control hoard’s ehairnian. , . Air. Grounds, til the outset, said that he had previously been privileged to lav tlie position he fore dairymen, out he had not so far been able to place it before the N.D.A. at their annual gathering. Air. (»* rounds rclerrcd 10 tin* ci host ion of broken boxes, concerning wind l biscussion had taken place earner i n the conference. The overseas delegates hau several times mentioned broken noxes in their report. Euky Bti per cent, ot Ine they snjv Jiacl been cine i<> the end timber being too thin. Insu)ficient uailing and the use of nets were other causes of breakages. Nets, however, were now not being used, it having been ascertained tiiat they uoio largely responsible lor tiie breakages, and iu arranging contracts the beam stipulated that boxes must be slung in trays. , , . , The wisdom of wiring the boxes Juki also been discussed by the cuiitcgenco, but he did not think they should be too hasty in this connection, the handlers in London definitely. stated that New Zealand packages were the best put up of any that arrived on the market. The thin type of wirebound box was jn vogue in Australia. Dealing further with this question -Mr. Grounds referred to the keen competitive efforts being made in Australia to show better comparison with New Zealand produce, and said that in adopting the same packages it was open to question whether New Zealand producers would not be assisting the elforts of Australian producers. The opinion of the home merchants at present was that the New Zealand packages were the best being received, and the speaker strongly advised that no precipate action he taken in advocating the universal use of the wirebound boxes. Another point previously discussed at the conference concerned the ward system of voting for control hoard members. He had not expressed an opinion, but he agreed that the present system was unsatisfactory. There had been factors at work, however, that had been trying to introduce disintegration amongst the dairymen themselves Continuing ‘ Mr. Grounds said that the board had recognised the necessity for a system of checking grading, and in this connection they were working in conjunction with the Dairy Division, but had no intention of interfering with the Division’s method of assessment. The board in conjunction with the distributors at Home were doing all it could to see that the produce represented the grade indicated when it arrived in England.

The question of absolute control was also dealt with by the speaker, who said that New Zealand in promoting a scheme for the better marketing ot produce was by no means attempting a course that had not been tried in other countries where marketing schemes had been in existence since 1893. TJiey in New Zealand had also had the benefit of the experience ot such organisations as the New Zealand Marketing Association and the New Zealand Co-operative Dairy Company. Mr. Grounds held that a form of control wan necessary to combat the violent fluctuations on the market. The work already done by the Control Board to straighten out "the interests of the producers in the matter of insurance was also maintained by Mr. Grounds. The whole work .was now being done by the board under one policy, and farmers were reaping tiie benefit. The appointment of the shipping inspector had also brought to light some important factors that were operating to the detriment of the producers’ interests. Steamers had now been classified in accordance with their refrigerating qualities. ..In connection with many shipping disabilities the shipping companies had shown a marked inclination to assist. An araingement for a regular fortnightly arrival of ships in England had also been arrived at.

Proceeding the speaker mentioned the large increase during the past ten years in the amount of dairy produce carried to the Home market. This had respited in the ships having- a greater earning capacity, as dairy produce occupied less refrigerating space as compared with mutton mid beef. Consequently the board was not yet satisfied that freights were on a comparatively correct basis. Dealing with the question of standardisation of cheese. Mr. Grounds quoted from a letter received from a London merchant, in which such course had been urged, it being considered that a considerable quantity which arrived last season had not reflected credit upon the Mew Zealand standard. This *led him to speak of the grading system and the premiums proposed for the superior grades. It was proposed that there should he a difference of pi between first and second grades in the price to be asked, but the difference in advance respecting the superfine grade had still to be fixed. The board had also decided to concentrate attention on markets in Great Britain, the Continent and America, but mainly in-Great Britain. The East was not being touched at present. Western centres in England would be developed, as it was only lack of Men Zealand produce that was tho cause of so little business being done there.

A national brand had also been adopted by the board, the advertising value of .such being a great consideration. It was intended that the national brand should be placed on both ends of the boxes, space also to be allowed for the individual company brand so that it could be associated with the grade awarded. Also as a -means of giving greater publicity, steps were being taken to provide a better sales store at the Empire Exhibition, where New Zealand butter and cheese would be available for distribution in cartons marked with the national brand A brochure calling attention to the merits of produce had been prepared and would be distributed widely. Arrangements were being made for the appointment of representatives in Vancouver, San Francisco, Montreal and New York, and also on the Continent of Eurpoe,- whose function would be to make the produce known in their respective centres. Further, an extensive advertising scheme throughout the United Kingdom was being arranged for. Continuing Mr. Grounds said there had been a remarkable change throughout the country in opinion concerning the necessity for the board’s work. The only question was how far control should be taken. He was convinced that marketing was the “bell tower" of the structure the industry had been trying to raise all these years. It was when the opportunity was presented for reforms that criticism arose. Qontiuuig

Mr. Grounds said there was still a lot of misunderstanding regarding the board’s intentions concerning control. The hoard wanted control within the meaning of the Act. and it was convinced that the work of tlie board could not be carried out without that power The control that the hoard wanted meant a consigning system under the supervision of the board. The vagaries of the market were also touched on. the speaker taking the period from December 2t) to Juiuiaiy ].*. During that time the price of Zealand butter fell from 204 s to fobs. He placed the cause or the sale ot New Zealand produce at run ions prices, not to distributing 'agents, but to other merchants who were talking down New Zealand prices, iu an endear out to maintain them at a level prolitabie to themselves. Mr. Grounds drew attention to the general movement in favour ot increased production. He pointed out that, if they did not find a profitable avenue for ' the increased production it could not continue. If economic production .were continued and the hoard eliminated costs between the producer anti the consumer all would well. 11l the roport -or the oversea s cloleontiou of the Control Dom’d, con eluded Mr. Grounds it was stated that risks were involved in any system, but that greater risks threaten the industry in a continuance of the present system. If the industry did not back up the board in tlie eifort.s to consolidate the interests of the industry, the power to do that would slip out of the hands of those employed in the industry. Risks naturally had to he taken, but each would have to be borne by the industry. The board had hee n chosen hv those engaged in the industry, and if changes in tlie personnel were desired. the speaker for one would be prepared to vacate the position, but until the board had been given the opportunity of illustrating what could be done, lie appealed for the co-opera-tion of those engaged and the elimination of tlie spirit, of cavilling. Regarding finance, the question was asked if the board would ne prepared to make any advance in excess of the ordinary monthly payment. Mr. Grounds, replying, said that the board would not be able to make any payments over the value ol the produce. l n replv to a further question Mr. Grounds said that he wa s convinced that the election of a council of 20 members elected upon the ward system, would give to each district fuller and better reoresentation on the Control Board tfhan that provided under the present Act. Such an important industry required sustained and reliable management. At the conclusion of his address M.r Grounds was accorded a hearty vote of thanks.