DAIRY MARKETING

New Zealand Herald, Volume LXX, Issue 21639, 3 November 1933, Page 11

DAIRY MARKETING

PROPOSED REGULATIONS AMENDING EXPORT LICENCES DATE OF OPERATION UNLIKELY THIS SEASON [nV TELEGRAPH PRESS ASSOCIATION] V,'ELLIXGTOX, Thm'sda y A statement regarding the new marketing proposals was issued by the secretary of the New Zealand Dairy Produce Board, Mr. T. C. Brash, today. It was as follows: "As there appears to lie a great deal of misunderstanding regarding the new marketing proposals, we wish briefly to set out the exact position. "In January of the present year the board received from its London manager a cablegram conveying., a, recommendation of the advisory committee of the New Zealand Dairy Produce Importers' Association* of the United Kingdom to the effect that some action was necessary to prevent the practice of selling consignment produce under current prices before! arrival of the steamer carrving the produce and unknown to the dairy company that owned the produce. This committee maintained that such practice had the effect of continuallv depressing the market. "When Mr. W. A." lorns, chairman of the board, lelt lor London early in March, he had the instructions of the board to ascertain from merchants what they considered necessary to give effect to' their recommendations.' Mr. lorns interviewed a number of merchants arid asked for suggestions. Following upon this the New Zealand Dairy Produce Importers' Association set up a committee to consider problems of marketing. After a number of meetings the vommittee put forward to a full meeting of the association certain proposals, which were unanimously adopted for transmission to the board. Safeguarding Industry "When Mr. lorns returned to New Zealand the board considered these proposals, and, after making some amendments intended to safeguard the interests of the industry, the board submitted the proposals on September 20 to a Dominion conference of 45 delegates, accredited representatives of dairy companies, appointed from different wards throughout the Dominion. This conference heartily supported tho proposals. "In the main these proposals provide: —(a) That, in co-operation with dairy companies, the board shall allocate consignments to merchants. It goes without saying that this will bo done with as little dislocation as possible. (b) That the board shall bo supplied with full particulars of prices at which consignments are sold, with dates of sale, together with particulars of all stocks held, (c) Regulation of f.o.b. sales. The board placed on record its decision that this particular regulation shall be so handled that f.o.b. or c.i.f. sales, either for immediate or forward shipment, shall be made possible. "(d) That merchants handling New Zealand dairy produce in Great Britain shall do so under a licence issued by the board. A number of conditions have been suggested by the Importers' Association and others by tho board. The issuing of these licences will naturally be discussed with London importers, and circumstances are bound to arise from time to time which will make reconsideration of condi- ) tions necessary. Bringing in New Conditions "To enable the new marketing conditions to become operative certain alterations will require to be made in the licences under the terms of which dairy companies and proprietors at present ship their produce. These licences are issued by the Minister of Agriculture, subject to such conditions and restrictions as may be approved by the Dairy Board. The new conditions for export licences will provide that tho board will have certain control over the allocation of consignments and regulation of f.o.b. or c.i.f. : sales in New Zealand. "Provision will also be made to prohibit sales of consignment produce unknown to the dairy company prior to the arrival date of the steamer, thus seeking to prevent a practico .which so seriously undermines the market. "The board is moving toward amending the conditions of the present licence held by dairy companies, but it is unlikely that any of the regulations will come into operation for the current season, except perhaps the provision to secure returns of account sales, dates of sales,, etc., and to seek to prevent the practice of selling consignments prior to the arrival of steamers at less than current market prices, wh&h merchants indicate is continually depressing the market. Desire For Harmony "To assure dairy companies of the earnest desire of the board to establish conditions that can be worked harmoniously with merchants, and to retain their goodwill, the board sent the following cablegram immediately after its last meeting on October 26: —'The board is going forward to securing necessary regulations to put into operation the marketing proposals agreed upon. The date of commencement is nofc yet fixed, but it is unlikely any portion of the regulations will take effect, until next season. Convey to importers' association the assurance of the board's readiness to discuss, through deputation or by letter any clauses with a view to securing hearty co-operation of all interests and making arrangements to work amicably.' "A few days later it was learned that certain interests in New Zealand (not; dairy companies or producers) wera sending cablegrams to the New Zealand Dairy Produce Importers' Association in London which appeared to be intended to create friction between the boards and this association, and the board again cabled with a. view to removing any doubt as to its anxiety to co-operate. Attitude of Importers "To this the following reply has been received: —'The Importers' Association appreciate your cables and reciprocate assurance of full co-operation. We would appreciate prior submission to us of draft regulations to be asked for by you, to enable us to confirm the principles and submit any amended details as early as possible, should such bo necessary'." Mr. lirask's statement gave the text of the board's reply, which expressed to the importers appreciation of their assured co-operation and set out the additional conditions being made on licences under which dairy companies are at present exporting. It was further stated: —"The terms of the licence between the board and the importers is entirely one for discussion and arrangement between the board and importers, and will not bo set out as conditions of the licence issued to exporting dairy companies.