Reach Agreement On Local Marketing

Northern Advocate, 31 May 1949, Page 5

Reach Agreement On Local Marketing

Dairy companies in the Auckland Province, including Northland, have reached agreement on the question of a single company to handle the local marketing of butter.

This agreement follows independent negotiations by two groups of companies, each of which sought to set up its own marketing concern. The chairman of the Northland Dairy Association (Mr D. A. Finlayson). at the association’s annual meeting at Whangarei this morning, announced that the two groups had reached agreement on the formation of a single company.

As far as he knew, only one independent dairy company had not yet signified its assent.

( The main points at issue had been in regard to the number of directors and the question of brands. Originally it had been suggested that there should be six ’ directors, three from the New Zealand Cooperative Dairy i Co., Ltd., and three trom outside companies.

The New Zealand company had now agreed to accept 47 per cent of the trade in the Auckland city area as its fair share, and the balance of 53 per cent was to be shared by the outside companies.

A solution had also been reached in regard to the ?tlength of the board. Independent companies would provide five members and the New Zealand company four. The chairman tf/ould have no casting vote, and the office of chairman would be changed annually, it had been suggested. The New Zealand company would have its turn in egard to chairmanship, in rotation and its representatives would not occupy the chair for consecutive years. Mr Finlayson said it would be necessary under the new set up to appoint another member from Northland. TWO FROM NORTHLAND

The outside companies would now be represented by two members from Northland, two from South Auckland and one from the Bay of Plenty.' It was not proposed that there should be any alteration in the appointees to the board with the exception of the additional members.

The assets of the Internal Marketing Department at Auckland would be taken over on a valuation satisfactory to the company. Copies of the draft memorandum and articles of association would shortly be circulated to the various dairy companies,' Mr Finlayson said, adding that there were now no points at issue. Mr E. S. Tremaine (V/hangarei), whose company was one of the group which had made a move to form a marketing concern independent of the New Zealand Dairy Company, ■ expressed his pleasure that agreement had now been reached on the formation of a single marketing organisation.