The Hawera Star. SATURDAY, JANUARY 28, 1933. DAIRY FACTORIES’ REQUISITES

Hawera Star, Volume LII, 28 January 1933, Page 4

The Hawera Star.

SATURDAY, JANUARY 28, 1933. DAIRY FACTORIES’ REQUISITES

Delivered every evening by 6 o’clock in Hawera, Manaia., Kaupolconui, Otakeho, Oeo, Pihama, Opunake, Normanby, Okaiawa, Eltham, Ngaere, Mangatoki, Kaponga, Awatuna, Te Kiri, Mahoe, Lowgarth, Manutahi, Kakaramea, Alton, Hurleyville, Patea, Whenuakura, Waveriey, Mokoia, Whakamara, Ohangai, Meremere. Fraser Road and Ararata.

If the resolutions adopted at the conference of dairy factory representatives held at Palmerston North this week are supported by co-operative dairying as a whole, the results should be of benefit to the industry. One of the most important recommendation's made bv the conference was that the Department of Scientific and- Industrial Research should immediately set up a “standards bureau” for dairy -factory requisites. That this is a progressive move- and one that calls for immediate action will bo agreed by all who have any knowledge of what has been happening this- season in regard to cheese bandages. This is a subject upon which a progressive Dairy Division could have given a lead months ago. The Division failed in that duty, but the industry is to be congratulated upon being able to supply its own leadership, oven if it is somewhat more belated than might have been.

There is a power of common sense behind the conference’s resolution calling upon the Government, to ensure an adequate supply of veils for rennet purposes. This season the cheese industry has been threatened- with a. shortage of rennet, owing to the supply of veils being insufficient -to meet an additional demand for rennet in the event of an anticipated increase in the milk supply. Such a shortage, or even the danger ref a. shortage, is absurd in this dairying country in view of the achievements of the New Zealand 00-operative- Rennet. Company. This company has been the most successful auxiliary undertaking entered upon by the co-operative dairying industry, which lias had 1 an experience of “off-shoot” concerns not entirely happy. Th.o rennet- company has not only made the Now Zealand cheese industry independent of foreign supplies, but it has been responsible folr bringing about big reductions in prices while maintaining the highest quality level; further, it

has extended its operations overseas and is a supplier to the Australian t-rade. On the face of the situation, it would appear that the dictates of selfinterests would ensure an adequate supply of veils to the company by dairy farmers, but as that 'has not been invariably the case there are good grounds for the request that, for the future, veils should be the subject of an export license which would ensure that adequate supplies were plained in the country. The- individual farmer has, of course, the right to expect- thathis interests as a supplier of veils would be safeguarded to the extent- of assuring him a reasonable price. The Palmerston meeting’s resolution calling for general support of the industry’s co-operative supply companies earn be generally commended, with the qualification that- it is not desirable that even farmers’ enterprises, serving farmers’ industries, should be granted complete monopolies. It is only partially true that ‘ ‘ competition is the life of trade.” Excessive competition can be the death of trade, as is known full well to those who, have seen the effects of price-cutting in its relation to cheese bandages. Complete monopolistic rights are as bad for co-operative dairying as for Government departments, and for the same reasons, namely, that .they tend to destroy efficiency and create slackness. Co-operative supply companies have the right, however, to expect consideration from co-opera-tive dairy factories, so long as. they are supplying goods which compare well in quality and can be marketed at a fair price. It is the question of the “ competitive” price which often defeats the co-operative concern, for it cannot afford to participate in trade wars which ‘bring prices so low as to l destroy a margin of working profit. It is when competition' reaches this level that the dairy factories are called upon to use comnionsonse and, in the words of the Palmerston resolution, take into consideration, not only the price offering at the moment, 'but the quality of the goods and the end-of-season rebate.