DAIRY PRODUCE

New Zealand Mail, Issue 1747, 30 August 1905, Page 58

DAIRY PRODUCE

METHODS OF GRADING AND MARKETING. The Select Committee appointed to inquire into the dairy products of NewSouth. Wales continued its sittings on Thursday, 3rd inst., when evidence as to conditions respecting the control > of dairy products in New Zealand was given by Mr John Holmes, of Wellington. Mr Holmes, eight years ago, spent eighteen months in Great Britain and. her colonies investigating trade gelations as a Trade Commissioner for New Zealand. His report, he sa.id, strongLy favoured Government grading of specified export products, and since the introduction of the principle, the advantage to all concerned had been most beneficial. The New Zealand experience, as well as that of all other countries where the system operated, was that the stoutest opponents to the mt reduction of grading became its strongest converts. His experience was chat grading had become one of the most important links Cementing trade relationship with the Mother Country, which took 78 per cent, of the products exported from New Zealand. To Mr Jones, the witness stated that only good would result from the introauction of grading in ..New South wales. It would be beneficial to the producers, merchants, and - the consumers. In place of selling on open ■Co Dsignmeu/t, sales would eventual ly be made on a cash basis, and while the merchants would benefit, the produce is wouid also profit. He was not committed to Government grading, but in a young community such was preferable; It could not be regarded as Government interference with private enterprise, because it would be Government assistance. The experience of New Zealand, was that both producers and buyers had complete confidence in the system. To Dr Arthur, witness stated that valuable educational work was accomplished by the Agricultural Department hundreds of thousands of leaflet® being distributed at frequent internals. This in conjunction with competition, had ’induced the farmers to improve their herds. _V Mr Millard examined the witness at some length on the -subject. of selling the factory’s output months-in advance rendered possible, the witness. said, * by grading. Mr Holmes" replied that, while there was an element of tion in forward sales, there was always certainty as to price. Sales on these lines were made on a basis of cost; it it cost, say, 8d to produce, and the manager contracted at there was a sure ltd- Unden* the old system of open consignment to London, the price realised was never known, until the a®*

count sales were returned. -- In his opinion, fortnightly or monthly sales of factories’ output must come to enable the directors to fix a stated price to be. paid to milk suppliers. Local auction sales would be the most equitable, because some, factories adopted a standard a few points higher than a competitor.