OVERHAUL OF INDUSTRY

New Zealand Herald, Volume LXXII, Issue 22194, 22 August 1935, Page 14

OVERHAUL OF INDUSTRY

IMPORTANT DEVELOPMENTS COMPETITION FOR SUPPLIES FUTURE OF SMALL COMPANIES [FROM OUR OWN" CORRESPONDENT] HAMILTON. Wednesday Important developments in the dairy industry during the pnst year were discussed by Mr. C. J. Parlane, general manager of the New Zealand Co-opera-tire Dairy Company, Limited, at the annual meeting yesterday. The most important happenings, he said, weie the tabling of the Dairy Commission's report, the setting up of the Executive Commission of Agriculture, and the remodelling of the Dairy Board, The commission's report was a. very valuable one indeed, and would generally be accepted as a complete record of the development of the industry, and at the same time showing the disabilities under which it is operating today. While his company was not prepared to accept the report in toto, in a large number of instances the conclusions arrived at were very sound indeed. Sixteen Years Late Dealing with the findings of the commission regarding the elimination of competition, the improvement of quality, the financial strength of companies, and marketing overseas, Mr. Parlane said: —"The Dairy Commission's findings in regard to these matters are to-day accepted as satisfactory and in the right direction, ' but unfortunately there have been many in the industry who have been at least 16 years late in realising the position. It must be a matter of very great satisfaction to those shareholding suppliers who have loyally supported the company, and the policy of the directors, to be able to sav that they have not contributed to the disabilities referred to by the commission." One of the problems at present engaging the attention of the hxccutiTo Commission of Agriculture was the zoning of supplies between dairy companies, and it had recently spent some time in taking evidence from the representatives of a number of companies with a view to, if possible, finding some satisfactory solution to the problem. Difficulty of Problem Mr. Parlane said he had no knowledge of what their findings would ultimately be, but he realised it would be a very difficult matter indeed to attempt to compel suppliers to remain with or perhaps return to companies if it meant that thev were to accept a lower price for their butter-fat in so doing, even though the return of these suppliers to the companies concerned might be the deciding factor as to whether the company would be able to carry on, or go into liquidation. It was obvious to-day that large factories were able to give better service and returns to suppliers than was possible with a small concern, and in consequence the ultimate result of the investigation now being undertaken may be that some of the smaller companies would find it to be in the best interests of their suppliers to go into liquidation and supply the larger co-operative concerns operating within a distance that would not make cream transport impracticable.

PATTED BUTTER SALES

EXPANSION IN BRITAIN LONDON FACTORY'S SUCCESS [from our own correspondent] HAMILTON. Wednesday The success of the factory established in London for the packing of the New Zealand Co-operative Dairy Company s butter in pats was commented on today by Mr. W. Goodfellow, managingdirector of Amalgamated Dairies, Limited, at the meeting of the New Zealand company's suppliers. Mr. Goodfellow said the factory showed a turnover of £347,000, and a profit of £10,485. The profit had been devoted to advertising and developing the sale of pat butter. Mr. Goodfellow added that the value of the plant and buildings was £29,101. _ Mr. C. J. Parlane said the pat factory had experienced a very successful season, the total sales amounting to 4102 tons, an increase of 563 tons for the year.