MARKETING OF PRODUCE

Hawera Star, Volume LIII, 7 November 1933, Page 6

MARKETING OF PRODUCE

BOARD'S NEW PROPOSALS DISCUSSION AT MIDHIRST. ADDRESS BY MR. G. GIBSON The Dairy Produce Board’s proposals f'4fif .-6Ke > .f6Srgafi'isation of the system of marketing dairy produce were discussed at a meeting of farmers at Midhirst last evening and an address on the subjects was given by Mr George Gibson, Rahotu. The following resolution was subsequently. moved, but was not put 06. V& meeting: • ‘‘That .this meeting approves of the act km of the Dairy Produce! Board in its endfeavotrr to improve marketing conditions and regrets that in times such as' the present indications are evident of attempts made to keep the producers of the country divided.”. , Mt T. T. Murray, chairman of the Stratford sufo-provmeial 'executive of the Farmers’ Union, presided. .Mi: Gibson stressed the seriousness of the proposals to restrict the present System and expressed the opinion that if they were given effect they would piejudicer the position of the New Zealand primary producers to an evCn greater extent thari did the attempt some time ago to secure absolute control. ... . The position was serious; he was i thoroughly convinced of that. If he did not really believe that what lie was doing was on right lines he certainly would Hot have taken up the stand he had done. He was firmly convinced that if the latest proposals of the Dairy Board; were given effect they would be detrimental to the dairy farmers .and everybody else. There was far too much of the “hush” policy. The fanners were not being told half of. what was going on. It was out of all. reason. ~ „ lii the previous day s papers Mr. i. 0. Brash had made a statement, and lie (the speaker) had authority from their representative on the Dairy Produce Board (Mr. W. C. Green) to tell them earn'd idly that that statement did not 1 really convey all of what had been done by the board. Mr. Green had been ih communication with Mr. Brash and he could assure them they would hear ifiPte' of it There had been no bo'atd sitting, the chairman being in Australia; there was no vice-chairman so far its Mr. Green knew, and Committee had been appointed to “run the show,” so that Mr. Brash had sent out the statement. . Mr. Brash, said Mr, Gibson, in his statement Said ih effect that they were going to await a deputation from the Importers’ Association, Loncron, before putfihg the new regulations into effect. Mr. Green had authorised him to tell them that on two occasions he had moved that rio action be taken this season and until after the deputation from the Importers’ Association in New Zealand and the board had had Sn opportunity of consulting with them, and that he had been defeated oh both occasions The board’s records saril. if .was defeated, but now they were fold by the secretary the board has nS going to fake any action. “HUSH, HUSH” POLICY.

Mr. iQihson quoted what he termed another instance of the “hush hush” policy. Mr. Grounds had stated at AVhangarei when he met the North Auckland Federation of Factories that if they kept faith with Australia they were bound to fix the minimum price for f.o.b. sales. Mr. Gibson said he did not think any of them really dropped to what was happening when this question of new marketing regulations was first introduced. A certain resolution was passed and the next fjhhig was a series of ward meetings. Tfie speaker happened to be at Hamilton at the time. a meeting was held there add, seeing that the advertisement ihvited all‘interested to attend, he went along. Mr. Fulton, Mr Grounds and Mr. Brash were there and the resolution with what lie termed numerous tails was discussed. The resolution read: * “That the New Zealand Dairy lrro dace Board be urged to initiate conversations with British importers with a view to overcoming the disabilities and loss suffered by producers and distributors resulting from our present unorganised methods of marketing That such conversations cover:

“(1) The value and influence of f.o.b. sales and the extent to which, if any, they should be restrained or controlled. “(E) The method by which required supplies may be assured to sound distributive organisations.

“(S) A method unifying producers to prevent concealment of inefficiency. “(4) The prohibition of sales of consigrifnent produce by agents before arrival.

“(5) The establishment of an audit System with agreements. “(6) The desirability of encouraging rietv distributors in new districts.

“(7) The desirability of arranging for a monthly steamer service to Hull and East Coast ports with a view of developing a similar service to that operating to West Coast ports. “(§) The question of more effectual advertising and sales by extending distribution of pat butter under the national brand and bv other effective and acceptable means.” NOT ON 0170 CONTROL. LINES The speakers, saicL Mi - Gibson, made it, clear that the resolution did not commit them to anything, that it was pimply requesting the Dairy Board to Consider these matters. Only the first portion of the resolution was read and they were also told that it was not brought forward with the idea of price fixation at all; that it was not on the Hries of the old Control Board. The motion was carried. Mr Fulton, they would remember, attended the New Plymouth meeting and Mi ; Gfeeri, by virtue of his position as representative of the ward on the Produce Hoard, presided. The speaker rather thought that had Mr Green not been in charge of the meeting the same resolution would have been carried, but fie took the proper course and held that the' ot iject of the meeting was to elect delegates to attend a conference to discUSs the position. Delegates were elected and so far as the resolution was concerned it certainly was not carried despite' the fact that Mr Fulton tried Inifd to get the meeting to endorse it by shying as had been said at Hamilton that there was nothing binding in it. :Mr Gibson referred to Mr Green’s ability as a chairman and said he did , quite right in taking the vote on the sht>w of hands. Other decisions arrived at at the meeting had been on a show of Hands, ahdl that being so it would hare been most improper to have allowed, the vote oh another question to he taken bn .a tonnage basis. . .rtevfeftihg to the conference held at ■Whatrigarei Gibson said Mr Grounds 4hen challenged had contradicted the statement “that to keep faith with Australia. they were hound to fix the minimum price for f.o.b. sales” and contended that fee Jfed never s.aidi it. All

the speaker could say was that it went through the Press' of the Dominion and if now Mi - Grounds denied dt and said the Press was wrong, he should deny it through the Press. Mr Gibson said he felt at liberty to repeat a statement which was made to him privately at the time. Mr Amery, Secretary for the Colonies, was in New Zealand some years ago. He had known Mr Amery before, he came to New Zealand, and when ho heard he was coming to New Plymouth he wrote to him. In due course he met Mr Amery and also Mr Brass, M.P., and Mr Huxley, M.P., the latter being secretary of the Empire Marketing Board. He spent some time with Mr Huxley and in discussing the Control Board asked him to say candidly whether or not in liis opinion compulsory control did' New Zealand any harm. Mr Huxley without any hesitation said he had had dozens of merchants go to him and ask what it all meant and that if they had got to do this and to do that he could take his New Zealand butter and 1 keen it, they were riot going to be bothered with it. Mr Huxley added that he had had to pour oil on the troubled waters. Mr Gibson then said to Mr Huxley, “And this has done us a lot of harm?” the reply being, “You have no idea, how much harm it has done you, and you are not going to get over it for some time.”.

ATTITUDE OF IMPORTERS Mr Gibson said it had been argued this scheme had gradually developed. It first appeared as a recommendation or inquiry, Mr lorns said it was from the Importers’ Association. He could rihver understand the Importers’ Association, knowing the firms as he did, being unanimous on it, though he , could understand a few of them wanting it, arid it so happened that the committee of the Importers’ Association was composed largely of members of the two or three firms who were actively supporting the proposal. He had information that only three firms in Britain were actively supporting the proposal, four were more or less sitting on the fence, and all the others were opposed to it, especially, as they learried more of it. , Mr Gibson said a meeting of the Free Marketing Association was held recently at Auckland and Mr Green as a member <3t the Control Board, was asked to attend. There were three good reasons, however, why he could not do so. in the first place, his wife was seriously ill at the time; secondly, Mr Green himself was indisposed rind under the care of the doctor; thirdly, -Mr Green felt that in his position as a member qf the Produce Board he should not take an active part in that sense in opposing the scheme at that time at airy rath, seeing that the board had come to no decision. Mr Green, however, suggested that the . speaker attend the! meeting and he did so. The meeting represented 20 factories almost entirely buttermakers, their output being approximately 35,000 tons, and the following resolution was passed:

“That this meeting of _ representatives of dairy companies is conviriced that any interference with of restrictions of the absolute freedom of dairy companies to dispose of their produce as they thirik fit is opposed to the best interests of the industry arid would have the effect'of placing New Zealand dairy*produce at a grave disadvantage on the British market.”

DDMINION-WIIDE MEETING

A Dominion-wide meeting would be held at Wellington this month to further discuss the position. In the meantime they had cabled the resolutiori to the Importers’ Association and this was the reply; “Your cable circulated to all members. In reply thereto as an association we have no desire to advocate any regulations which in the opinion of the dairy industry are unacceptable. We draw attention to the fact that the proposed regulation’s, were framed conjointly with the Dairy Board at their request. Copy of your cable arid bur reply sent to' the board.” Mr Gibson drew special attention to the point that the proposed regulation'swere “framed at the request of the board,” and that this knocked right out the statements that had been made that they came originally from the importers’ 'Association. Mr Gibson said that at a recent meeting at Stratford he. informed Mr lorns that he knew, definitely that a good number of protests had beeri forwarded to the Produce Board against this marketing scheme, and nC asked if these were being tabulated, with the tonnage they represented. Mr lorns replied to the effect that they had been tabulated, but that I he could not give the number becausrif |he had not the figures with him. Mi j Gibson said he asked for the approximate number, but again Mr lorns said 1 he could not give them from mem o;ry, but added that many of them were of no value because they had been made under a misapprehension. Were they to understand from that remark that dairy companies did not know their own business ? Mr lorns must have had some idea of the number of factories. Mr Green, when Ik attended the last meeting of the Pro duce Board, made his fourth applica tion to have them tabulated and the chairman had asked him why he was so persistent. Mr Green said he wanted them and had a perfect right to them. He went so- far as to say he had a legal right, but did not want to take that step, and was then informed that if he was so persistent he would have to have them. MiGreen then said lie wanted them before he went away, but Mr Brash said that could not be done because there would be a lot of work in getting them out, and Mr Green had not got them yet. Mr Gibson said some people might claim that too much information of happenings at the board meetings was leaking out. but he would remind ' them that accorcfing'Yo' printed report' 1 Mr Good fellow when he was a mem her and Mr Fulton claimed that the,! , always kept their directors fully in formed as to the affairs of the board.

MERCHANTS’ COMMISSION. One of the objections raised to the present system concerned but Mr Gibson pointed out that oven if there were no agents, which would be the case if the new proposals came into effect, it would make no difference to the producers. People talked about the cost of the agents, their salaries and travelling expenses, but after all they were paid by the merchants out of their 2i per cent, commission and if there were no agents the merchants would still get their 21 per cent. As a matter of fact he considered it was an advantage to have the agents because they kept the directors closely in touch with affairs. Further, they lived in the country, their salaries were spent there and they helped to pay rates and taxes. Discussing forward sales, Mr Gibson said he did not consider they wore doing any harm, though there might be anomalies which should be rectified. The position was that the people at the other end know a certain amount of produce was arriving on a .boat at ft certain date, and why should not they be asked to make a bargain and buy. it before it landed instead of waiting until it went into store? These people had their own stores, at least many of them had, and if they could take de-

livery direct from the ship then it was reducing their charges. He was convinced that the more merchants they could interest in their produce the better it was going to be for the producers because it meant increased competition. Aga'iri all these houses had their friends and if there was any restriction and those friends found they could not obtain New Ztaland butter or cheese from those houses they would not take their business elsewhere, but would obtain produce from other countries. New Zealand.yCar by year had been sending, increased quantities to Britain, and despite that so far as he was aware there had only been two cases of default in tne last 20 years.

FINDING NEW MARKETS.

Mr Gibson alleged that the consul of a European country had asked to be put in touch "with sofneone in New Zealand from whom he could buy butter and cheese. He was referred to the Produce Board arid was told that it was not its business' to look after new riiarkets, and that if he wanted-any information along that line he should go to Tooley Street. The speaker contended that the board would be more than justified in using part of the levy to try and find new markets. Mr Masters had advocated trying to open up new markets and had said that in Belgium there wris a prospective market, but still nothing was done; rind the -same applied to the East. These were things in which the Control Board should grit bttsy. Mr Gibson said there was too much interference, and that the merchants at the other end would not stand for it. New Zealand was not the only country sending butter and cheese into England, and rather than submit to irksome restrictions and regulations they would leave New Zealand produce strictly alone and get supplies elsewhere. New Zealand had -suffered as the result of the action of the Control Board in the past and he was firmly convinced that if these regulations came into force they would be even more harmful. -He was convinced, that it was wrong and that if carried out would give_the industry a setback from which it would take years to recover.

Mr Davis replied to Mr Gibson’s remarks, stating that he hoped the whey butter regulations would be adhered to. With regard to the trip to Wellington Mr lorns had been sent to England to obtain information officially. The wards meeting had been generally considered! as one of the best dairy meetings ever held in New Zealand. Go long as the merchants played the game everything would be all right, said Mr Davis.

“What if they don’t?’’ asked Mr J Wood.

“If they don’t play the game they lose their licenses,” replied Mr Davis. He added that good opinion had; placed weak and forward sellers as being responsible for lower prices. He had voted for the- proposals in the opinion that they would lead to 'Something pro- ; gressive. I Other delegates to the wards confer- ! ence also spoke. j EXCLUSION OF PRESS J Mr Blyde said the Press had been l excluded from the ward delegates’ * meeting. ~ He thought that was all right as Mr lorns would then be able to tell them many things he otherwise could not. ~ Voices: Why? Mr Blyde: It does not do for any business man to place all his cards on the table. The farmers could learn of matters from their delegates and the exclusion of the Press might mean the prevention of possible harmful matter reaching enemies on the English market. The Dairy Board was an elected body for the marketing of produce and the proposals brought down, from whomsoever the initiation, if they did not cause opposition from the merchants should not be condemned by the inexpert. , Mr R. B. Sutton also spoke, stating that he did not think the proposals would. mea.n cutting put agents. As regards wliey friitter beirig sold as Empire butter, rio New Zealand butter could be Sold unless it was branded Empire butter. There had been several moves to abolish the board, but the industry would have none of them. Mr H. O Taylor considered it could be taken that whey butter was not now being sold as table butter. As far as the proposals went Mr lorns was known as an opponent of price fixation, and if he came back from a special trip and said improvement was riecessary he should be listened to.

I Mr Gibson said that a delegation from the Importers’ Association would eoifie but without delay if invited. Mr Murray .said they had two statements, one that all importers, except two, were in agreement with the proposals and another that only a minority approved. Mr Gibson said; the first statement did not deal with the amended proposals ; the second did. Mr H. Graham, secretary of the Midhirst Dairy. Co., read, correspondence from the Dairy Board which showed a set against forward selling. Mr Graham considered the Free Marketing Association wais largely a merchants’ association and was of no good for the industry, and would result in further disorganisation. Mr Gibson replied to the other speakers. He had been told they had no “constructive criticism.” That was a high-sounding phrase. If he wanted to build a new house he first of all cleared the rubbish away. He had been pleased to put his case before them. By all means let .them get together, as Mr lorns; and Mr Davis had said, but he did not want them to get together to commit suicide. .The motion was then moved and Mr Wood protested, moving that no resolution be taken. Mr Gibson had come to give his point of view. No resolution was taken, and on Mr Murray’s motion a vote of thanks was accorded.