THE CHEESE INDUSTRY

Otago Daily Times, Issue 14784, 17 March 1910, Page 4

THE CHEESE INDUSTRY

SCHEME OF PROPOSED SALES. In order to obviate the respective disadvantage ot the system of factories selling their outputs on Iho basis of tlio entire season or on consignment to London, the secretary of the South Island Dairy Association of New Zealand (Mr J. R. Scott) lias formulated the following scheme of holding monthly sales. Tins has been submitted to all members for their consideration before- the annual meeting on June 1: —

"1. lour committee, after due consideration of this matter, resolved upon a scheme sis under, and if sufficient signatures are received it will be put into operation on orabout October 20 of this veal': —

"2. Jiacn factory signing to advise the. secretary approximately (say within 10 per cent, mere or less) tho quantity of cheese or butter available for two fortnightly shipments, commencing in November. ''3. Each factory so doing to undertake to pay_ (for the first season anyway) the sum of 2s 6d per ton to t'hc association on each ton of chcesa offered for it, whether sold or not, (See clause 17.) "4. Each factory Xo have the right of fixing its reserve price at any time up to one hour before advertised timo of auction sale.

"5. All sales will bo made on Government grade, f.o.b, Bluff, Dunedin, or Lyttcl ton—Butter, if, second grade, -£d per lb less; cheese, i<\ per lb less. "6. Weight to be correct as certified by Government grader. "7. Butter—Half-pound per 561b bos to bo allowed tare.

"8. Cheese-*-Shrinkago allowanco to bo 2i pec cent., this being the London Produco Exchange rule. '.'9. Insurance to be provided by buyer from factory door to London, though sale is f.o.b.

"10. AH cheese which may be unsold, to bo consigned by tho association to two firms in" London to be selected by tho association as its selling agents.

" 11. Commission to not. oxecod 2 per oent. These firms to'provide bank credits and insurance, availablo in every town at Bank of New Zealand, National Bank of New Zealand, mid Bank, of Now South Wales. Tho association to draw on theso firms for the advances mado to factories on consignment. ■"12. Terms of all sales are cash against b.l. at tank in any town where bank account is-kept. "13. Auctioneer .for the association to bo appointed by tho directors. "14. The secretary will make out all b.l. if requested to do so, and deposit them at- sellers' bankers _in any town within four days of each shipment.

"IS. Tho sales at first to toko place monthly in -Dunedin, as most central, and duly advertised and. buyers notified by circular. " 16. The expenses of carrying out tins scheme are estimated approximately at— Auctioneer's license or salary, £50; extra clerical labour and other expenses. £200; contingencies,, say £50;-total, £300. "17. If the 2s 6d per ton paid by factories as abovo proves over the expenses, any balanco to be returned pro'rata to the factories on the amounts they have so paid. "18. From tho foregoing it will be apparent that the association recommends a trial of this system for tho whole of next scawn's export, beginning about tho 20th of October next.

"19. It lies with the factories -themselves as to the success of this scheme, and, provided at first a reasonable limit is put upon oiFerings, the undertaking is likely to be most successful.

"20. The committee and secretary should be able to adviso factories as to a reasonable limit.

"21. Factories should let it bo clearly understood that they will sell or consign only through tho association, and that cousigimionts will only go to the firms appointed by tho association. " 22. The success of the' whole scheme depends upon tho unity of the factories using this association as the machinery to ihis end ant! supporting tho scheme loyally.

'" 23. The agents appointed in London will said cables from time to time to the association as to (ho prices and prospects, and these will bo repeated as confidential telegrams to' tho factories ■ subscribing to this fclicmo onlv."

This proposal has aroused much-interest m Southland particularly in regard to the suggestion that sales should be,.held in Punedin. > A' feeling of .jealousy, on the part of Invercargiil has manifested itself, but this, as was explained to a Tim«s reporter yesterday, has no warrant for existence. In the first place it is as yet but a suggestion that the sales should take ,placo in Dunodin. The factories to be served by the sales embrace Canterbury, Otago, and Southland, so that Dunodin' is decidedly the most central. Centralnoss and convenience for buyers would appear to be the ■ sole considerations . wliirfi should govern the .selection of a ccntro for the sales. . No pecuniary advantage' will accrue to any' centre from having the sales, nor wiirthorc'bo any disadvantage attaching to any factory wherever the sales are held. The product will be sold by catalogue and listed, and wherever sold the shipping and handling of the product will, of course, be do'no from tho port nearest to tho factory. Further, no payment will bo made in the centre where the sales are made, but, as clause 12 shows, payments may bo made against bill of lading in any town, where tho bank account of the factory is kept. From these considerations it is plain that there is no occasion for any petty jealousy. It is" suggested that a. continuance of this feeling would possibly bo but for tho purpose of endeavouring to secure a split, in the ranks of tho association. In regard to tho- claim put forward by Southland that that district is the ■ largest cheeseproducing area in New Zealand, tliis assertion, it was pointed out, should be modified to " largest in the South Island," as the North Island in several districts is superior' to Southland.