DANGER IN CONTROL

New Zealand Times, Volume LIII, Issue 12423, 17 April 1926, Page 6

DANGER IN CONTROL

NEW ZEALAND DAIRY PRODUCE , “TOOLEY STREET THE TOOLS OF LARGE DISTRIBUTING HOUSES” A REPLY TO MR HAWKEN (To the Editor, “N.Z. Times.”) Sir.—As an uninterested party I fenve followed the correspondence of the Press, Welfare League, Chambers of Commerce, etc., concerning the Dairy Produce Control Board and the board’s reply on various occasions. Having recently returned from a visit to England and the Continent, I looked into the dairy produce position as it would affect New Zealand in the future. I approached the matter in an even frame of mind, desiring to get first-hand information as to whether control would, be beneficial otherwise to the producer as • a whole, and not to the few who constitute the board. 1 hare noticed that tho board has received an assurance from merchants in Tooley street concerning finance, and judging from the list of names the board lias pretty well secured all the 'importers in Tooley street, but I notice an absence of names from the other larger cities in England, where a Ifair proportion of Zealand X>roduce goes jnto consumption. Of course, the board may say that the firms mentioned have their agents in these provincial towns, which is quite right, but when one remembers that Air L.vsnar. of Gisborne, a few years ago stumped the country addressing various meetings of farmers advising them not to ship their produce to London, owing to juggling, etc., of the market by the firms, who now (so the board says) are ready to finance them, it is no wonder the farmer is perplexed. ' - The first thing that the farmer who supplies a dairy factory must understand is that the true distribution of their produce is not the Tooley street nferchnnt, but the large and powerful grocery stores, such as Homo, Colonial, Sainsbury’s, International Tea Stores, Front’s, etc. \. TOOLEY STREET MUST AGREE The Tooley street wholesale houses cannot do other than agree with tho New Zealand Control 'Board, for the,simple reason that the board is hacked by an Act of Parliament, and • as the supply from other parts of the world is not yet up to pre-war* quantity they will take New Zealand produce ancl supply the distributor until such time as the distributor can make sure, of other supplies, when Tooley. street will have io import the supply the demand.

In short, Tooley street are the tools of the large distributing houses, and what they want Tooley street must get, or others will be found in their place. It is a fact that Tooley street are sitting on the fence, waiting to see what, will happen to control, and if it is a success they will go With it, but if not then they will be found trading elsewhere. This, is confirmed by their action of not withdrawing their representatives because, as several of them told me, they' have doubts of the Control Board’s success. Now, on what grounds do they base their actions concerning their not withdrawing their representatives ? It proved to them that stored in New Zealand produce could not he Sold to the same advantage as the fresh article. STORING INJURES QUALITY It is the object of the board, according to the London distributors, to ‘ hold up supplies by, storing and teu tioning them, hut the weakness of the position is that New Zealand butter does deteriorate, for I was shown a famous Auckland brand of butter that had fully an eighth of an 'inch all round the butter, when the box was' opened, which was quite unsaleable, and had to he throWn away; it being of a yellow ochre dolour and not what is was when it left New Zealand. There was also a very Serious complaint amongst some of the distributors regarding unclean flavour; it being described as a bitter taste. Probably the hoard will say that last season’s prices do not bear out my remarks, but the farmer should know (this is what the board ought tc do: supply the farmer with more details) that the reasons of las® season’s good prices were, .first, a * drought, there being no rain for six weeks in England from the first week in-Mav until the end of June, a very critical time in English supply—the hot weather causing Ireland to ship cream for manufacture of 'ice-cream in England, and Canada send her '■ream to tho United States for the same purpose. Secondly, a transport strike in Denmark. stopping' supplies temporarily. Thirdly, and most effective, the decision of the German Government to impose a duty of 3d per pound on colonial products, which .caused the German produce houses to buy all the butter they oould before the duty came into force. So that, although '•ertain New Zealand /factories had their’butter stored in London, it was not the storing that gave the enhanced price, but the set of circumstances ns mentioned above. This is my impression concerning-the wholesalers and their attitude concerning control. FIERCE RESENTMENT • 1 So far as the big distributors and consuming houses were concerned, the * m«ny I met were all affable, and pleased to talk of New Zealand produce. but underneath their’ affability one could see and read their fierce resentment of the Control Board, which many of them thought was an interference with their business, and it was conveyed to ipo that if Jhe control came, into force they would take New Zealand produce so long as it suited them, but the moment other supplies were available, New Zealand supplies would be a stop-gap. Later on I will give you an instance of how it can be done that cam© under mv notice. I may add that some of them told me thev had pushed Now Zealand butter to their customers, which seemed to increase their resentment of the Control Board. Generally speaking, however. New Zealand butter and cheese were favourably spoken of, so far as quality was concerned, excepting last year’s stored stuff, and this may be a lever for circulars from the head office to the brandies to give preference to ether butters at, the expense of New Zealand, for who in London for England, for that matter) knows New Zealand butter from Esthonian, except those in the trade? At the conclusion of my interviews. I was imnvcssed that the kev of success for New Zealand butter and

cheese was held by these big distributing houses, not Tooley Street, and if the New Zealand farmer antagonises these firms they will use all their efforts and capital to bring in supplies from foreign countries. I would dratf the attention of the New Zealand farmer to the Argentine, ■South Africa, and Siberia, for the Argentine has secured one of otir best graders and also a vefy prominent dairy expert from Australia, with the result that their quality and price have improved. A STRAW IN THE WIND This brings me to the incident referred to in jthe earlier part of this letter. Walking down Tooley Street. I stopped outride one of the warehouses, when a salesman asked me if h=> could show me s6m£ samples of but 7 ter On my acquiescing, l.was asked to try several butters from many countries, but no New Zealand butter. On inquiring if (there was any New, Zealand to bo tried, I was informed they had some, but it could not be trusted owing to Its being stored so long, and that it was not to be Compared witjj Esthonian or fresh Siberian. This, I think, shows which way the wind blows, and if this feeling grows it is a poor look-out for the butter and cheese industry in this, country, with the farmer saddled as he is with land priced out of all ( proportion. Couple this with the speech of Mr Emery,, chairman of the largest distributing houses in London, and if it does not bring home to the New Zealand dairy farmer the advisability of looking ahead i>efore / entrusting a surer iharket to the tender mercies of a few men who have formed themselves into trade autocrats, then the farmer cannot expect sympathy if he loses what he has already got, and can keep, so long as he keeps up his quality and rejects wHat is nothing • rnpre or less th in for that is .what absolute control really is, according to the btY Ijondon distributing houses.. Strangely enough, some of the Now Zealand butter that went to Germany w'as also the cause of complaints from ' that country, and it arose from the

samo Auckland brand, which had been stored in London for a higher price. The dairy farmer must put his thinking cap on,, and decide whether it is good business to risk quality and safe marketing for a temporary rise in price. ; If -he does, then let him vote for absolute control, but if he desires to hold his position in the world's markets he will send those who are engineering absolute control -to tho right-about. ! WHAT OF PAYMENTS? Another very serious question the dairy farmer must face is the payment question. . If the hoard is going to pool all; moneys, and pay out irrespective of grade nates, then what is the effect going to be on the future quality ? I understand that most factory managers are conscientious and painstaking in their manufacture, blit there are some tfho are! not quite so competent, and if the factories with incompetent managers receive the samo Ijrioe for their butter as the competent ; factories, then the quality will recede, for human nature takes the line, of least resistance. TRYING TO FORCE SOCIALISM ON ENGLAND Finally, the New Zealand dairy* farmer must understand that this control is absolutely obnoxious to the British public; and, if persisted in, may be the means of destroying his position in their good favour, especially if the London Press takes up the matter. 1 noticed; that at a, recent deputation to the P.rime Minister regarding absolute control, the Minister for Agriculture, Mr Hqwkeu, asked: Where is the danger of control? The danger is not apparent so clearly in New Zealand now, buc it,soon will be if persisted in and I would advise Mr Ilawken to £o to London, and he would soon see for himself. no hesitation in classifying it as follows for the Minister’s future guioarico: (1) Tho fierce resentment of those Who supply the dtugiish consumer at being .forced to do something quite foreign to their business principles fH) The grave results that will surely occur to tho Ne\* Zealand dairy farmer rn Withholding stacks .in cold store for nn enhanced price, at the nsk of lowering quality. (3) The driving away of trade and capitjy to foreign countries. Last, but most important, the attempt to force on to .the English pubUc socialism, which they will not have eve,! from New Zealand, although Jacked by the Minister for Agricul-

Remember. Mr Hawken, Germany th n • ri ° rC ;f- t 0 the someV dld ln °t want, and failed, ine Kaiser is now out of a job. It may happen to you, for you are a youngster as a Minister yet, but reeyos April 12th, 1926. L-S.D.