DAIRY CONTROL

New Zealand Times, Volume LII, Issue 12076, 2 March 1925, Page 7

DAIRY CONTROL

THE BOARD'S POLICY IMPORTANT OFFICIAL STATEMENT BY CHAIRMAN. SUPPLY AND DISTRIBUTION. Mr W. Grounds, chairman of the New Zealand Dairy Produce Control Board, makes the following statement in connection with the board’s decision regarding the control of dairy produce: The decision of the Dairy Produce Control Board to take absolute control of all shipments of dairy produce ‘as from August Ist, 1926, will involve the prohibition of all f.o.h. sales by dairy companies. This will not prevent such sales being made by the board, if, in its opinion, forward sales would tend to stabilise the market. In the event of suci* sales being made they will he on behalf of the industry, not individual factories. , FINANCE

Finance will be secured from London merchants. Advances will be made by the board, instead of the agents of individual firms, against shipments or Store warrants as may he necessary. There will be no further need for the retention of individual agents, the cost of whose maintenance will be saved the industry and /possibly be sufficient to pay the cost of the marketing organisation and expenses of the board. Reservations of supplies, for equalising shipments and to secure a continuity of distribution will necessitate pooling of returns. Advances will be made to all factories on an even basis according to grade, While final settlements will he made on a basis to secure even payment for similar grades to all factories. The grading will be done as at present by the Government Dairy Division-. SUPERFINE GRADE.

It is proposed to establish a superfine or choicest grade, in addition 'to the present first and second grades. The exact level of quality at which this will be divided . from the -first grade has not yet been decided, hut will be made at a point likely to promote effort to seoure inclusion within, that classification. The. differentiation in price between the grades paid to factories will be based- upon the difference in price in actual realisations. . It is proposed to adopt a national brand, competitive designs for: which Will be sought from, the public. "When selected, it is intended to make; this the central feature of all advertising m Britain -and elsewhere. Only the “first” and “choicest” qualities wilLbe exported under the national brand'. ORGANISATION IN LONDON.

Supplies - will go to London merchants in the first instance, in the proportions received by them during the last few years. Each merchant will receive as far as possible the factory brands he hat been accustomed to handle. Opportunities will be provided for. the 1 i nclusioru-ef-—“wy other merchant whose posif?vnrTH®ia'tes a probability of efficient jervioe. New centres of distribution/ /ill ;be organised. Selling efficiency' will afterwards determine the flow of ’’'supplies, through each chan- . nel. ■ On their arrival in'London the board’s represeritativeß will make arrangements with distributing merchants for co-oiv dinated effort ; as far as may- he realisable under, agreements by consent; for the season 1925-26, along the lines of the hoard’s ultimate policy. The shipping neoessitiee of the hoard’s - policy hrive been placed . -before/ the shipping' companies. “DANGEROUS.” : After long consideration of alternative courses and- an interpretation of the legal position by jbheir solicitor; the board' decided that to ' attempt qontrol by-suspension, of shipments would _be dangerous, that the present indiscriminate and unorganised attempt, by individual factories in suspending shipments ’and price-fixing ftiny Tesult in loss, andprejudice the conduct of regularised business, and that anything less than absolute control precludes the development of other markets and- centres of distribution. Its full operation was de-ferred-until 1926 to .give ample time for the' establishment of the organisation necessary to efficiently carry the responsibilities involved.