Manawatu Daily Times SATURDAY, JANUARY 9, 1926. Where is the Dairy Producers’ Board?

Manawatu Times, Volume XLIX, Issue 2340, 9 January 1926, Page 8

Manawatu Daily Times SATURDAY, JANUARY 9, 1926. Where is the Dairy Producers’ Board?

Mr Herman Seifert, who has just returned from a World tour, has raised several pertinent questions which have, for some time past, exercised the minds of many New Zealand dairy producers. The New Zealand Dairy Produce Board has now Been in full working order for two years, at an approximate cost to the producers of £50,000. There has not been ope single occasion during the whole of this period, where the Board, either collectively or individually, directly or indirectly, has given a lead to New' Zealand factories as to the shipping and marketing of their produce. No assistance, no helpful information has come forth from the Board’s offices during the whole of these two years, concerning Overseas conditions, actual or potential market fluctuations, prospects of the future, or errors of the past, which might have been of use to dairy factory directors in the PU,rsuarxcp of the}r usual export bust-

ness. Well might Mr Seifert ask as to the doings and whereabouts of the New Zealand Control Board! As he has been absent from this eountry for a prolonged period, we should like to Inform this gentleman, that the chairman and members of the Dairy Board have been engaged with the questions of pools and absolute control almost exclusive to everything else. Not that they have accomplished anything In particular in this direction, Tot, every sacrifice has boon made fpr these objects In view. 1

The Necessity of New Markets,

One of the main objectives of the Board should have been the creating and opening up of new markets. The gathering of knowledge and dissemination of Information is one of the greatest needs of the primary producers of New Zealand. "Thousands of miles from our Overseas markets, our produce takes weeks to reach our customers, while our competitors require only so many days. It was hoped, therefore, that one of the first actions of the Board would be the establishing of an intelligence bureau in which were centred the market pulsations of. the whole dairy world. Such a bureau should have been in the bands Of a highly trained and capable business man, who, being In possession of all available statistical facts and figures, would have been of the greatest value and assistance to the directors of dairy companies throughout the country. One of the greatest weaknesses in our present system Is the lack of statistical and economical information. Only a few weeks ago, when the London butter market started to collapse Overseas cables, obviously Inspire* warned New Zealand producers as to the shipping of butter to the United States, practically Intimating that there existed a surplus of butter In that country. Somebody evidently prefers to see New Zealand butter dm cd on the London market India erlnilnately, bought at slump prices and re-exported to America at a fair margin of profit.

Ee-Export of Butter.

Everybody knows, of course, that at certain periods of 'the year large quantities of our butter are re-expor-ted from London to Germany, America, or anywhere else where opportunity offers, but the New Zealand producer is not reaping the benefits. There te certainly something wrong with our system of marketing and the New Zealand Dairy Board has not as much as lifted a finger to improve this system. In speaking to the chairman of one of the largest companies In this district, we ashed him what information or assistance the Board was giving his company regardng Overseas market conditions and price fluctuations. He answered “none”. The secretary of the Board, he explained, was sending out once or twice a month a circular letter, generally containing figures of exports of other countries several months old and very often already published by the New Zealand press. The dairy companies had to jdepend entirely on press cables and information given by local agents. This adtice, the chairman concluded, is very full, up-to-date and highly reliable, but restricted to conditions of the London market.

Killing the London Market.

We have pointed out on several occasions that the New Zealand producers are ruining the London butter and cheese market several times each year with a thoroughness that is quite foreign to their ordinary methods. With the advent of the Board, it was hoped that aii this would be remedied, but during the last two years, matters on the London market have been worse than ever. There are many producers who have no hesitation in stating that the Board deliberately refuses to take action, in order tq' impress upon the producers the absolute necessity of pools and control. Statements made during the recent crisis by one or two of the leading members of the Board certainly give a semblance Of truth to such a conception. We can hardly believe however that the members of the Board would go to such length. On the other hand, it is being maintained that the New Zealand Co-op-erative Dairy Company, of which Mr Goodfellow —a prominent member of the Dairy Board—is Managing Director, has large quantities of butter landing on the American market during the present month and so will, to a groat extent, escape the slump in London. If this is correct, it is evident that the position was well known and understood by some members (Of the Board at least and that this knowledge was taken advantage of, without giving the benefit to the other Nov/ Zealand companies . There is no reason whatsoever why wo cannot send butter to America. Germany or any other country that, is prepared to buy. There are firms of the highest standing and integrity in ajl these countries, only too ready to

handle the butter of New Zealand factories. As Mr Seifert points out, even If the butter in such countries

was sold at the same price as on the l.ondun market, the produced would benefit, because of the relief It would afford the British market. As It Is, we allow the small and temporary surplus of produce on the London market to determine the value of the whole of our production, repeatedly resulting In a price to the producers actually below' the cost of production. So I'ar-r the New Zealand Dairy Produce Board has done nothing to remedy this state of affairs.