DAIRY GRADING

New Zealand Herald, Volume LXXIII, Issue 22449, 19 June 1936, Page 11

DAIRY GRADING

CHANGES OPPOSED jVIEWS AT CONFERENCE [DANGERS of subdivision "CHAOS IN INDUSTRY" [}lV TELEGRAPH —SPECIAL REPORTER] HASTINGS. Thursday Opposition to the su££estion made yesterday by the Minister of Marketing. Hon. W. Nash, that a moro elaborate scheme of dairy grading might bo adopted during tho coming export season was expressed by a number of delegates at the National Dairy Conference in 'Hastings to-day. After considerable discussion on the point it was decided to recommend adherence to the present system of grading for butler and cheese. The question was raised by a remit from tho lvokoluu Co-operative Dairy Company, Limited, which at tho suggestion of Mr. A. J. Sinclair (To Awaluutu), was amended to read that in tho event of a premium being; paid on grade tliero should bo only threo t grades for butter and two for cheeso. "1 was very disturbed to hear tho statement from the Minister that it is proposed to subdivide tho grades," Mr. Sinclair said.' "Apparently the idea is to have two grades of finest and two grades of first. If tho Government intends to pay differential rates on grade tho dairy companies will have to adopt a system of differential payments to suppliers on points for cream. That will lead to endless objections from suppliers who t find that half a point places them in a lower grade, and it will also give rise to endless difficulties in accounting." The Director of the Dairy Division of the Department of Agriculture, Mr. ' yi. M. Singleton, said that if there i was going 'to be only ono price for finest butter cream would bo collected Jess frequently. He did not think the Government would regard that favourably. Mr. C. J. Parjane, general manager of the New Zealand , Co-operative Dairy Company, said that too elaborate a system of grading would defeat its own ends. It was questionable whether grading in the Dominion was always supported by the price obtained on the London market. That applied particularly to cheese, which might be graded second class before export and then command a high price in London. ' "If the Government goes ahead and splits the grade there will be chaos in the industry," said Mr. Sinclair. "That chaos will be made more pronounced if differential payments are made. Any talk about less frequent collections of cream can only be based on exceptional cases. In the Auckland province cream must be collected daily—the factories have not the necessary space to deal with two days' supplies." When the ihotion to support the present grading system was put to the '* vote it was carried on the voices, although there appeared to be a considerable measure of opposition. INDIVIDUAL BRANDS ' , \ RETENTION WANTED DOUBTS ABOUT STATE SCHEME ♦ [BV TELEGRAPH —SPECIAL REPORTER] HASTINGS, Thursday Some, doubts as to the permanency of the Government's proposals for the marketing of dairy produce were expressed by delegates to the National Dairy Conference in Hastings to-day when a remit from the Westmere Cooperative Dairy _ Company, Limited, . -was under'discussion. The effect of the remit was that under the new marketing arrangements the companies' present brands should be used in conjunction with a Dominion brand. In moving the remit Mr. B. Dawes said there' was no certainty that the Government's marketing scheme would be permanent. The Minister of Marketing, Hon. W. Nash, had suggested in his'address to tho conference that if the scheme failed the Government itself might fail. With a chance of Government' the scheme might be discarded and for that reason it was important that the individual brands of companies should continue in use in order to ensure a continuation of overseas goodwill, which , had been built up over many years. The suggestion was endorsed by several delegates, who pointed out that a similar claim had been promised consideration when the Dairy Board's group marketing scheme had been put forward last year. They held_ that the marketing advantages of individual comDanies should be protected, at least until the time, when it was proved whether or not the Government's marketing scheme was likely to rucceed. .The remit was carried unanimously. INSURANCE SCHEME PROPOSAL FOR INDUSTRY ADOPTION BY CONFERENCE [by TELEGRAPH —SPECIAL REPORTER] HASTINGS. Thursday A comprehensive insurance scheme for the dairy industry was adopted at the National Dairy Conference in Hastings to-day. The scheme, _ which has been fully published, provides for insurance with Lloyd's until such time as a mutual fund can be established. There was some discussion on an offer of insurance received from tho State Office received after the report and recommendations had been framed. Mr. }3. Roberts. M.P. for Wairarapa, urged that consideration of tho proposals should be deferred until the new proposal had been examined. "Tf in the future there is a surplus in the Dairy Industry Account," Mr. Roberts said, "there could be no better object than to make it tho nucleus of a mutual insurance fund for the industry. That would bo of much greater benefit than the distribution of tho surplus as a bonus." Voices: No. no. After some further discussion the report on the suggested scheme was adopted and the committee which framed the report, comprising Messrs. C. G. C. ,Dernier (Cheltenham'). N. Campbell (Awahuri), D. G. Becley (Heretaunga), It. B. Colston (Himiera) and A. J. Sinclair (To Awamutu) was reappointed to act with three, members to be appointed by the National Dnirv Association to put tho Scheme into operation. NEW ORGANISATION fur Tfer.KRRAI'H—SPECIAL ItKPOJiTF.II] HASTINGS, Thursday Tho .suggestion made at the National Dairy Conference in Hastings yesterday that an independent organisation should be set up to represent the dairy industry 'was endorsed, when definite proposals for the incorporation of a National Dairy Federation were brought down at the conference to-day. The chairman, Mr. A. Morton (Egmont Village), read a draft constitution, Which was approved by the conference, and the executive of tho National Dairy Association was empowered to proceed with tho arrangements for incorporation.