THE DAIRY INDUSTRY.

New Zealand Herald, Volume LXVII, Issue 20600, 26 June 1930, Page 13

THE DAIRY INDUSTRY.

WORK OF PRODUCE BOARD. LOWER SHIPPING FREIGHTS. MARKETING POLICY DEFENDED. ABOLITION PROPOSAL LOST. [BY TF.LEG2.IPH. —GWX CORRESPONDENT.] HAMILTON, ■Wednesday. A review of the activities of the New Zealand Dairy Produce Board was given to-day by Mr. J. Hine, acting-chairman of the beard, in an address at the annual conference of the National Dairy Association. The conference had before it a remit from the Eaetihi Dairy Company thai the work now carried cut by the board could be done equally well by the association, and that the conference seriously consider the abolition of the beard. Discussion on the remit was withheld until after 3lr. Hine r s address.

"One of the most important and difficult functions of the board is a satisfactory arrangement of the shipping service." said Mr. Hice. "The board tock over this work in tha 1925-24 season, and the reduction in the rates cf freightobtaining now in comparison with those then ruling show an annual saving of £355,596. A fresh contract has just been completed for a term of three years on terms which will show n further saving to the industry of £35.000 a year, an amount just equal to the levy. The fact that the board could offer tha whole cf the produce was unquestionably a potent factor in securing these reductions.

Marine Insurance Economies. "Delegates will be interested to learn," continued Mr. Sine, "that apart frcm tie Halifax boats, not fewer than two a month will make Auckland the final port for London." The rate secured in the marine insurance policy, which had another two rears to run, showed a saving against 1923-24 of ever £32,000 a year. By a contract made with the cold storage authorities, produce was new most efficiently handled at British ports, while the cost had been reduced by £25,000 a year. The board claimed, therefore, that in shipping, insurance and storage it had secured redactions of £570.596, £32,000 and £25,000 respectively. Some measure of these reductions in freight should probably hare ccme about by reason of a fall in prices, but most of the saving could be attributed to the board's statutory powers, enabling it to deal on behalf of the whole industry. An extensive advertising campaign was conducted in Great Britain at an annual cost 'of £15,000, and proof of the value cf this undertaking was shown by the complaint of many Australian visitors that while New Zealand produce was everywhere in evidence, Australian appeared to be unknown. Bat it was useless for the board to advertise if quality was not maintained. Mr. Hine also referred to the board's grant of £4OOO annually for research wcrk at Massey College, and the fact that dairy companies could with advantage avail themselves more ef the services cf the beard's intelligence department.

Cultivation of Goodwill. "It is sometimes asked why does net the board undertake marketing on behalf of those who desire it," said Mr. Hine. "The board has under its extensive statutory powers assumed limited control of all exported dairy produce, and it is essential that its impartial exercise of these powers should be, as I believe is the case now, beyond suspicion. Were the board acting as agents for any particular company, this confidence would be to some extent lacking. Another reason is that the board should studiously refrain from any action liable to revive the antagonism engendered by this absolute control policy. We must cultivate goodwill, and this can best be done by maintaining the declared policy of the Board to avoid taking any part in actual marketing. "It is apparent that the present low prices are not, as claimed in seme quarters, due to inefficient marketing, but to the cycle of economic depression which is universal If we delude ourselves with the belief that by some magic panacea we can lift prices, then we are doomed to disappointment. We must not misconstrue the real position or overlook the fact that, so far from being the great centre of dairying, New Zealand stands only ninth on the list in regard to the world's production of batter, and seventh for cheese. Its production cf butter is 2.5 per cent-, and of cheese, 2.6 per cent. Our competitors are keenly a'ert to displace us frcm cur greatest market, and only the continuance of a cordial tone with our customers and maintenance of the finest quality can save us from disaster. Interests of Producers. *'l think yon will agree that the maintenance of the board as a separate entity elected by the direct vote of the producer, is not only justified, but absolutely necessary, and that an impartial and disinterested board can best assure that the interests of every com pan} 7 , be it great or small, will be amply protected." In rersly to a question, Mr. Hine said the administration costs had been reduced by about £16,000 since the abolition of absolute controL After a short discussion the remit relating to the abolition of the beard was lest by a large majority.