MARKETING DAIRY PRODUCE

Nelson Evening Mail, Volume LXVI, 13 April 1934, Page 6

MARKETING DAIRY PRODUCE

HANDLING OF ALLOCATIONS CO-OPERATION WITH FACTORIES AND MERCHANTS The now dairy produce marketing regulations which conic into client ot the commencement of next: season, provide the Dairy Board with a number of unusual problems, hut it is anticipated that after one season s working any minor difficulties will he smoothed out and the regulations worked to the full satisfaction o dairy companies in New Zealand and our agents overseas (states the Boa id officially). For the coming season the Board is faced with two problems —firstly. Ihe need for meeting the wishes of directors as to the appointment of the linn which is to handle the factory s output, and secondly, keeping faith with the merchants in England who were promised that so far as is possible all would receive the same total amount of consignment produce to handle as they had during the present season. r Phe Board recognises, ot course, that in the great majority of cases factories Will give their'outputs to those merchants who arc already handling them, but it is known that in some cases at least the factories desire to change. Moreover, ill those cases where a number of factories with very small outputs are dividing them amongst a number of agents, it is suggested that this division of outputs should be stopped, and the Board lias proposed to these factories that one agent handle the output in each case. .Meantime, in order to put the proposals into working order, the Board lias circularised all factories seeking information as to whether they wish their outputs to go to those agents who are now handling their produce, or whether they desire to change. At a latter date a special committee of the Board will he set up to endeavour to give practical effect to the wishes of factories.

It is anticipated that the difficulties will more or less disappear by the end of the first season, as the Board will then have definite knowledge as to the results obtained by the various agents, and will thus he in a position to advise factories regarding any suggested changes. If, as a result of a year’s experience, the Board recommends any factory to change its agent, the information it will then be able to place before the directors will, it is thought, be such that no factory will hesitate to act on the advice. On the other hand, if after a year, a factory desires to make a change, it will he allowed to place its views before the Board, and the same privilege will be allowed tli e agent. Tim new marketing regulations are designed to overcome the present, costly system of securing consignment outputs and to prevent tlie wastage and overlapping that occur. ft is obvious that with low prices ruling ail army of agents cannot be maintained in New Zealand for the sole purpose of seeking to secure outputs for their agents overseas, for the lower market prices have reduced agents’ commissions, without their having been able to effect suitable reductions in tlie expenses of securing outputs. It tints comes about that the agents and the Board both heartily favour alterations to tlie present system, and with the additional cooperation of factories in New Zealand, the marketing regulations will he brought into effect with a minimum of interference.