DAIRY MARKETING

Hawera Star, Volume LIII, 27 September 1933, Page 4

DAIRY MARKETING

BOARD’S RECENT DECISION.

VIEWS OF DAIRYMEN

In an interview with a Haweia Star” reporter yesterday it was stated by Mr J." it- Corrigan, chairman 01 directors of the Hqwera Dairy Company and delegate to the recent ward conference in Wellington that producers nn o- lit • have been led •to believe that the London ' importers’ proposals, were inspired bv Mr W. A lorns chairman of the New ZeaJand. Dairy 1 iodine Board, who had just returned from England. Such an impression would be dispelled, however, when it was learned that fully three years algo suggestions of a similar nature weie cut to the hoard and turned down. He claimed that the board, by adopting the new marketing proposals, with certain suggested amendments yet to be approved by the London importeis, was protecting the interests of companies bv ensuriho- that all butter and cheese would be sold under license and that no f.o.b. or c.i.f. sales wquld be made below Loudon current prices. It had been stated, said Mr Corrigan, that the whole of the pesent system of marketing would be revolutionised. “I caniiot> sc'o where the new scheme w ill el-. foci such drastic dianges as all that, ’ the speaker continued. “The produce| I will go through the same channels as I m the past, but instead of it costing us thousands of poundsi to have y» many importers’ agents running about the country we will be able to employ that money to some more useful purpose.” Mr Corrigan 'considered that . the practice of canvassing for the ourI nut of dairv factories was wasteful and I that the board could handle and control the industry’s marketing arrangements to better advantage and thereby eliminate to a certain extent me i speculations of “quick quitters” who were largely responsible for the parlous condition of the industry to-day. r t I was not the intention of the board to I exerciiso control clause lof the pro- , posals made provision for f.o.b. or i c.i.f. sales hy dairy companies on the,r I own account, the only stipulation being i that no sales coidd be made below Lon- ! don current prices at the time of such I sales. In this manner the freedom 1 of f.o.b. selling was not curtailed. Dealing: with a number of other points raised Mr Corrigan said that the board’s decision to accept the ■inporters’ proposals hardly came as a surprise to those closely in touch, with overseas marketing. Importers had been in negotiation with the board during the last three years with a view ro the re-establishment of the old na.rKeting policy and thus eliminate the unnecessary expense of canvassing the outputs. Bv these proposals the industry would be controlled and the produce protected in every way possible from exploitation. He considered that opt, for the “quick quitting’’ tactics of London sellers, cheese would never have dropped below 465. Speculation however, caused it to drop as low at I ;)fss and everyone suffered as a cons*-- | uience. Mr Corrigan was of the opu: ion that everything was. to be gained I by the move and he predicted that as .1 rim season advanced producers would , have reason to be thankful for the I change in the Dominion’s marketing I policy. On enquiry at Auroa yesterday if was learned that Mr A. G Johnstone, chairman of directors of the Joll Da*ry Company, who also acted as delegare to the ward conference, had not k*. . turned from Wellington.

When asked to give an expression of opinion Mr.J. S. McKay, chairman of directors of the Riverdale Dairy Company, said he had not seen tne dairy board’s new marketing proposals and until he had done iso he did not feel disposed to discuss the subject. He was of the opinion, however, that anything that would stop forward selling would he to the advantage of die industry. “To me it looks like an attempt to gain absolute control of the industry,” said Mr E. Burke, chairman of directors of the Kaupolconui Dairy Company. While admitting that he barl not had time to go into the matter thoroughly, he considered that the export of produce under license to approved importers was desirable in th« interests of the industry to prevent speculation. The board’s action in adopting the importers’ proposals certainly came as a. surprise and in i is minion its* effects were so far-reaching that the subject should liavo been re lerred to the industry for an expression of opinion. Manv people, he said, were strongly opposed to any interference with free marketing. As a supporter of control in die dairying industry,- Mr H. E. Johnston, of Tokaova. -said he rather favoured '•oitain of the proposals adopted by tim board, but he agreed that the matte’* wa.s of such vital importance that the hoard should, have had a prior mandate from the industry as a whole. In his opinion the importers had made little or no contribution to the scheme but stood to reap a commission of 2J per cent, with the expense of maintaining agencies throughout the 'Dominion'. Mr Johnston considered that as he was a director of the Hawera Dairy Company that he snoukl first bear what his chairman (Mr Corrigani had to say before venturing an opinion on various aspects put, before him. ft was possible that the hoard had very good reasons for making its derision along the lines already indented in the Press and until he had heard what they were ho was reluctant to make further comment.