MARKETING PROPOSALS

New Zealand Herald, Volume LXX, Issue 21618, 10 October 1933, Page 11

MARKETING PROPOSALS

DOMINION DAIRY PRODUCE RESTRICTING F. 0.8. SALES STATEMENT BY MR. GROUNDS [by telegraph—own Correspondent] WIIANGAREI, Monday The marketing of produco was discussed at a special meeting of tho North Auckland Dairy Conference today. Practically every dairy company in tho -North was represented. Tho chairman, Mr. W. Grounds, a member of tho Dairy Produce Board, said that in July tho board, received a cablegram from importers in Great Britain containing suggested improvements for overseas marketing. Tho board came to the conclusion that there was inadequate information, and awaited the return of the chairman, Mr. W. A. lorns, from England. Upon his return certain amendments to tho proposals wero made and were endorsed by the Dominion Conference, but tho board had not yet received confirmation from importers. Tho main contentious clause in the proposals so far as dairy companies were concerned was that no f.o.b. or e.i.f. sales shall bo made below London current prices at tho time of tho sales.

"This time last year we made representations to Australia that they should spread their shipments and not overload the London markets," said Mr. Grounds. "As a result of the New Zealand delegation's visit it was arranged with Australia that a minimum price should bo fixed below which f.o.b. sales could not bo made. If we are to honour tho arrangement made in Australia we must fix a minimum price, as made in Australia. The Dairy Board will not do anything which will prejudice the New Zealand producer. "We would have to request tho Government for an Order-in-Council for the fixation of a minimum price for f.o.b. sales, and this would be included in the licence for the export of dairy produce. Australia would do tho same."

Mr. E. K. Hamcs (Ruawai) said he had heard on authoritative information that Australia was going to remove the restriction on f.o.b. sales. Mr. Grounds said tho Dairy Board would have to make a definite arrangement with Australia on a mutual agreement for a current minimum price.

Mr. E. S. Tremaine, chairman of the Whangarei Dairy Company, said that Australia realised she had made a hasty step, and New Zealand had done tho same. If tho proposals were carried they would disturb goodwill and trading channels, of which every other exporting country would gladly avail themselves.

Mr. Irwin (Ruawai) said:—"Our duty is to make the butter the importers require, and sell the way they want us to. Otherwiso they will buy from other sources." v Mr. Grounds said that Mr. lorns would be going to Melbourne shortly to discuss with Australian representatives matters affecting the industry, and it was confidently hoped to get a substantial reduction in storage costs in London, which would be a big saving to the industry. It was finally decided that the conference should reconsider the whole position after receiving full information from the London importers. FREE MARKETING ASSOCIATION RECENT ACTION CRITICISED [by TELEGRAPH OWN" correspondent] Monday Criticism of what ho termed the unconstitutional manner in which the Free Marketing Association was formed recently by certain North Auckland dairy companies was expressed at a special meeting of the North Auckland Dairy Conference to-day by the chairman, Mr. W. Grounds. "A rather extraordinary position has developed in the North, and as a result your representatives at the Dominion Conference in Wellington were placed in an invidious position," said Mr. Grounds. "Prior to the conference in Wellington the North Auckland Conference had unanimously passed a resolution appointing delegates and instructing that the Dairy Produce Board bo urged to initiate conversations with London importers with the idea of improving marketing conditions. When the remit came forward there was a distinct feeling among delegates, owing to the formation of the Free Marketing Association, that there was strong opposition in the North to the remit.

"The North Auckland Conference is futile if, after it carries a resolution, the delegates have the ground cut from under their feet. If reconsideration of the remit was desired by some companies the executive would unhesitatingly have called another meeting." Mr. F. Elliott, chairman of the Hikurangi Dairy Company, said he was a member of the executive of the Free Marketing Association. All the association members desired was that certain channels for the disposal of produce by f.o.b. methods should not bo taken from them. Perhaps they were not right in acting unconstitutionally and they regretted if the Dairy Board had felt slighted. Mr. J. Wallace (Ruawai): We have 110 intention of apologising for our action in forming the Free Marketing Association. The board in Wellington is keeping matters from the press and we do not know what is going on. It was always known that a big section of the industry in the North was not in favour of the Dairy Board's proposals for marketing.