THE NEW DAIRY MERGER.

New Zealand Herald, Volume LXVI, Issue 20364, 19 September 1929, Page 9

THE NEW DAIRY MERGER.

APPROVAL IN AUSTRALIA.

NEW SOUTH WALES FARMERS.

A conference of delegates from Now South Wales co-operative dairy factories sitting in Sydney recently considered the Empire Dairies proposal to market INew Zealand and Australian dairy produce. Mr. M. J. Hindmarsh, who presided, said that the great fusion between Now Zealand and New South Wales marketing interests—known as Empire Dairies, Ltd. was a worthy act ofi the part of New Zealand, as the fusion assisted New South Wales more than Now Zealand. ( " Tho failure of tho speculative agents system," continued Mr. Hindmarsh, " was the main factor which brought co-operation into being, and while we can make cooperation prosper, tho speculative agents will drop more and moro out of tho market." , .. Mr. C. E. D. Meares was loudly applauded when ho announced that from October 1 next commission charged would bo 21 per cent, instead of 22 per cent. Prices have been well held dining the past 12 months; but, Mr. Meares explained, it was not generally recognised that every Id change in tho market, up or down, represented £SOOO to £6OOO weekly, or a quarter of a million a year to producers. llefcrriug to the price of butter in Australia, Mr. Meares said: " Wo keep the local price higher, and by keeping it. higher we make the local commission agents pay a higher price. Now that wo have co-operation, some ol yon arc still supplying with butter the very agents whose factories co-operation disP The' following resolution was passed unanimously:— 44 Thai this meeting, in the broad interests of the dairy farmers ol tins State, considers that only by consolidation of the co-operative marketing forces remunerative values can be maintained, and it urges all those factories that arc whollv or partlv supporting the agency nystem to" fall in behind the great majority of factories which have built up_ co-opera-tive marketing to its present pinnacle of success." „ , . Mr. Meares explained at length the fusion of Australian and New Zealand selling interests in London which has led to tho formation of Empire Dairies, Ltd. The question was asked, lie said, why ISew Zealand should wish to join with Australia when New Zealand was getting a better price. Tho reply was that by lifting the Australian price the New Zealand price would also be raised. Mr. Meares pleaded with his hearers to take no nolico of canards, rumours and misrepresentations being distributed by agents in Australia and in Tooloy Street. The conference carried unanimously a resolution endorsing the creation of the Empiro Dairies, Ltd.