DAIRY POLICY

New Zealand Herald, Volume LXXIV, Issue 22822, 1 September 1937, Page 15

DAIRY POLICY

LONDON . MARKETING TOOLEY STREET REACTIONS REPORTS ON PROCEDURE APPROVAL OF MERCHANTS The reactions of Tooley root merchants to the Government's policy of dairy marketing were discussed 1»y the Minister of .Marketing, tho Hon. \V. Nash, in his broadcast statement regarding the guaranteed prices for hutter and cheese exports. During his stay in London. Mr. Xasli had lengthy discussions with leading representatives of all the British firms handling New Zealand dairy produce, and at his request all these firms supplied him with reports embodying their own opinion oil the New Zealand marketing scheme. Comments by the individual firms covered the whole range of marketing procedure. Among those quoted by the Minister was the statement from ono Tooley Street house that New Zealand was to be congratulated on partly closing the gap which had existed between the Dominion's dairy exports and similar goods from Denmark.

Violent Fluctuations Avoided The London merchants were also of the opinion that violent and numerous fluctuations had been avoided by the new procedure, which had resulted in a better shipping programme, the release of shipments simultaneously to all agents, the withholding of releases when the market was slow, the daily comparison of importers' realisations, and tho elimination of f.o.b. sales. According to other merchants, tho scheme had a marked advantage, in that it eliminated speculation. The goodwill of agents had increased through the assurance of steady consignment business, and centralised control had enabled better supplies and direct shipments to go to outer ports. The Northern Markets The increase in direct sliipmeifts to northern markets had also proved helpful, while tho restriction of sales to brokers and the elimination of speculative undercutting had been of great assistance. Several London merchants had mentioned the fact that tho new system had improved market conditions. Great practical assistance was being extended by the Dairy Sales Division, and it would have been impossible for anyone to have worked the schemes more efficiently or more- satisfactorily than Mr. H. E. Davis and Mr. J. W. Bodden, of the Dairy Sales Division in London. No section of the trade had been antagonised, and the only objections to the scheme, in the words of those now carrying on the business, came from merchants who previously had bought New Zealand dairy produce for speculative purposes. RESOLUTION OF PROTEST SOUTHERN THAMES FARMERS [BY X E LEG It APT! —O WXCO It H EST" ON D EXT] MORRINSVILLE, Tuesday The guaranteed price was discussed, at the meeting of the Southern Thames sub-provincial executive of the Fanners' Union, held at Morrinsville last evening. The views of members were summed lip in tho following two resolutions: — " This meeting protests against the inadequacy of tho guaranteed price, and asks why the provisions of the Primary Products Marketing Act were departed from." " Tha:. the Minister of Marketing he asked to give the full details of the figures under which the guaranteed price has been arrived at." NORTHERN DISCONTENT BISK IN LABOUR CHARGES [ 11V TKI.KGJIAI'IC—OWN COMIKSI'ONDKNT] 1)A KGAVILLE. Tuesday "There is nothing in it to compensate farmers for increased production costs," commented Mr. J. Irwin, chairman of directors of the Ruawai Co-operative Dairy Company, Limited, when discussing the guaranteed price. "Expectations had been built up on recent remarks by Mr. Nash and most farmers will think they have been badly let down. There is no doubt every section of the dairy farming community will be dissatisfied with the Government's step." "Dairy farmers would be justified in expressing dissatisfaction with the new price, principally on account of added labour costs in factories and on larms," remarked Mr. E. G. Appleton, chairman of directors of the Northern Wai roa C(f-opera t ive Dairy Company, Limited. "I am satisfied that last yeai we would have paid out more without the guaranteed price and under the production conditions ruling in tho previous year than wo actually did. Last year labour costs in the factory were 37 per cent greater than in the 1935-36 season and if the proposed scale of wages at present under discussion comes into effect our present wages bill will be increased by another 107 per cent."