DAIRY PRODUCE

Hawke's Bay Tribune, Volume XXIII, Issue 275, 3 November 1933, Page 9

DAIRY PRODUCE

NEW MARKETING SCHEME ENDING DEPRESSING FACTORS. STATEMENT BY TJIE BOARD. Bp Telegraph—Press Association WELLINGTON, Nov. 2. An explanation of the proposals for a new marketing system at present being considered by the New Zealand Dairy Produce Board and a record of correspondence by cable which has passed between the board and the New Zealand Dairy Produce Importers’ Association of Great Britain are set out by Mr. T. C. Brash, secretary of the board, in a statement issued to-day for the purpose of clearing up misunderstanding on the point. The statement says:— “In January of the present year the board received from its London manager a cable conveying a recommendation by tho advisory committee of the New Zealand Dairy Produce Import, ers’ Association of the United Kingdom to the effect that some action was necessary to prevent the practice of selling consignment produce at under current prices before the arrival of the steamer currying the produce and unknown to the dairy company that owned the produce. This committee maintained that such a practice had tho effect of continually depressing the market. “When Mr. W. A. lorns, chairman of the board, left for London early in March he had tho instructions of the board to ascertain from the merchants what they considered necessary to give effect to their recommendations. Mr. lorns interviewed a number of mcrcharts and asked for suggestions. Following upon this tho New Zealand Dairy Produce Importers’ Association set up a committee to consider the problems of marketing. After a number of meetings the committee put forward to a full meeting of their association certain proposals, which were unanimously adopted, for transmission to the board. DETAILED PROPOSALS. “When Mr. lorns returned to New Zealand the board considered these proposals and after making some amendments intended to safeguard tho interests of the industry, tho board submitted tho proposals on September 20 to a Dominion conference of 45 delegates, tho accredited representatives of dairy companies, appointed from the different wards throughout the Dominion. This conference heartily supported tho proposals. In the main these proposals provide:— “(a) That, in co-operation with dairy companies, tho board shall allocate consignments to merchants. It goes without saying that this will bo done with as little dislocation as possible.

“(b) That the board shall be supplied with full particulars of the prices at which consignments are sold, with tho dates of the sales, etc., together with particulars of all stocks held. “(c) Regulation of f.o.b. sales: The board placed on record a decision that this particular regulation shall bo so handled that f.o.b. or c.i.f. sales, for either immediate or forward shipment shall be made possible. “(d) That merchants handling New Zealand dairy produce in Great Britain shall do so under licenses issued by the board. SAFEGUARDING PRODUCER. “A number of conditions have been suggested by the Importers’ Association and others by the board, and again, let us say, solely with the idea of safeguarding the interests of New Zealand dairy producers. The issuing of these licences will naturally bo discussed with the London importers, and circumstances are bound to arise from time to time which will make reconsideration of the conditions necessary. “To enable tho new marketing conditions to become operative certain alterations will require to bo made in the licence under the terms of which dairy companies and proprietors at present ship their produce. These licences are issued by the Minister of Agriculture subject to such conditions and restrictions as may be approved by the Dairy Board. The new conditions for export licences will provide that the hoard will have certain control over the allocation of consignments and regulation of f.o.b. or c.i.f. sales in New Zealand. Provision will also be made to prohibit soles of consignment produce unknown to the dairy company prior to the arrival date of tho steamer, thus seeking to prevent a practice which so seriously undermines the market.

“The board is moving towards amending the conditions of the present licence held by dairy companies, but it is unlikely that any of the regula tinns will come into operation for the current season except, perhaps, a provision to secure returns ol account sales, dates of sales, etc., and to seek to prevent the practice of selling consignments prior to iho arrivals of steamers at less than tho current market prices, which merchants indicate is continually depressing tho market. CORRESPONDENCE WITH IMPORTERS. “To assure dairy companies of the earnest desire of the board to establish conditions that can be worked harmoniously with merchants, and to retain their goodwill, the board sent the following cable immediately after its last meeting, on October 26:—‘The board is going forward to securing the neces sary regulations to pnt into operation the marketing proposals agreed upon. The date of commencement has not yet been fixed, hut it is unlikely that any portion of the regulations will take effect until next season. Convey to

the Importers’ Association an assurance of the board’s readiness to discuss through a deputation or by letter any clauses with a view to securing the hearty co-operation of all interests and making arrangements to work amio ably.’ “A few days later it was learned that certain interests in New Zealand (not

dairy companies or producers) were sending cables to the New Zealand Dairy Produce Importers’ Association in London which appeared to bo intended to create friction between the board and this association and the board again cabled with a view to removing any doubt as to its anxiety to cooperate. SATISFACTION TO BOTH. “Trio cable was as follows: “In order to avoid any feeling on the part of importers that the board intends to act in any way arbitrarily, again assure them that the hoard fully realises that the success of the proposals absolutely depends upon the hearty co-operation ol importers : hence the board is willing to discuss proposed regulations with the intention of making them satisfactory to both parties. Although the board at present is moving to secure the necessary regulations from the Government, this is only to enable general powers to bo obtained. These general powers wili not include any details whatsoever, which will be a matter of arrangement between merchants and the hoard. “To this the following reply has been received: 'The Importers' Association ask us to send the following message: “The Importers’ Association appreciates your cables and reciprocates the assurance of full co-operation. We would appreciate a prior submission to us of a draft of the regulations to be asked for by you ip enable us to con-

firm the principles and submit any amended details as early as possible should such be necessary.” ADDITIONAL LICENSE CONDITIONS. “To this the following reply was sent: ‘Advise importers that their assured co-opcratiou is heartily appreciated. The conditions which the board is establishing here take the form of additional conditions in the licence under which dairy compnaies arc at present exporting. These will provide that licences will he granted subject to additional conditions: (1) The board will have the power to allocate consignment outputs; (2) there shall bo given to the board copies of account sales, with all particulars of the date of sale, etc; (3) tho board shall have the power to regulate f.o.b. or c.i.f, sales; (4) provision to enable the board to deal with the practice of consignments being sold unknown to dairy companies prior to the arrival date of the steamer.’ “Tho terms of conditions of licence between the board and importers is entirely one for discussion and arrangement between the board and importers and will not bo set out as conditions of the licence issued to exporting dairy companies.”