DAIRY PRODUCE

Otago Daily Times, Issue 22101, 3 November 1933, Page 10

DAIRY PRODUCE

NEW MARKETING PROPOSALS STATEMENT BY BOARD CO-OPERATION WITH IMPORTERS (Per United Press Association.) WELLINGTON, November 2. Mr T. C. Brash, secretary of the New Zealand Dajry Produce Board, issued the following statement to-day:— “As there appears to be a great deal of misunderstanding regarding the new marketing proposals, we wish briefly to set out the exact position. In January of the present year the board received from its London manager a cablegram conveying a recommendation of the Advisory Committee of the New Zealand Dairy Produce Importers' Association of the United Kingdom to the effect that some action was necessary to prevent the practice of selling consignment produce at less than current prices before the arrival of the steamer carrying the produce and unknown to the dairy company that owned the produce. This committee maintained that such a practice had the effect of continually depressing the market.

When Mr lorns, chairman of the board, left for London early in March he had instructions from the board to ascertain from the merchants what they considered necessary to give effect to their recommendations. Mr lorns interviewed a number of merchants and asked for suggestions. Following upon this, the New Zealand Dairy Produce Importers’ Association set up a committee to consider the problems of marketing. After a number of meetings, the committee put forward to a full meeting of the association certain proposals which were unanimously adopted for transmission to the board. When Mr lorns returned to New Zealand the board considered these proposals, and, after making some amendments intended to safeguard the interests of the industry, the board submitted proposals on September 20 to a Dominion conference of 45 delegates and accredited representatives of daily companies appointed from the different wards throughout the Dominion. This conference heartily supported the proposals. In the main these proposals provide:— (a) That in co-op v eration with the dairy companies the board shall allocate consignments to merchants. It goes without saying that this will be done with as little dislocation as possible. (b) That the board shall be supplied with full particulars of the prices at which consignments are sold, with the dates of sale, etc., together with particulars of all stocks held.

(c) The regulation of f.o.b. sales. The board placed on record its decision that this particular regulation shall be so handled that f.o.b. or c.i.f. sales, either for immediate or forward shipment, shall be made possible. (d) That merchants handling New Zealand dairy produce in Great Britain shall do so under a license issued by the board. A number of conditions have been suggested by the Importers’ Association and others by the board. The isuing of these licenses will naturally be discussed with the London importers, and circumstances are bound to arise from time to time which will make a reconsideration of the conditions necessary. To enable the new _ marketing conditions to become operative certain alterations will require to be made in the license, under the terms of which the dairy companies and proprietors at present ship their produce. These licenses are issued by the Minister of Agriculture, subject to such conditions and restrictions as,may be approved by the Dairy Board. The new conditions for export licensee will provide that the board shall have certain control over the allocation of consignments and the regulation of f.o.b. or c.i.f. Sales in New Zealand. Provision will also be made to prohibit the sales of consignment produce unknown to the dairy company prior to the date of arrival of the steamer, thus seeking to prevent a practice which seriously undermines the. market. The board is moving towards amending the conditions of the present license held by the dairy companies, but it is unlikely that any of the regulations will come into operation for the current season, except perhaps provision to secure returns, account sales, elates of sales, etc., and to seek' to prevent the practice of selling consignments prior to the arrival of steamers at less than the current market prices which the merchants indicate is continually depressing the market. To assure the dairy companies of the earnest desire of the board to establish conditions that can be worked harmoniously with the merchants and to retain their goodwill, the board sent the following cablegram immediately after its last meeting on October 20:— “The board is going forward with securing the necessary regulations to put into operation the marketing' proposals agreed upon. The date of commencement is not yet fixed, but it is unlikely that anv portion of the regulations will take effect until next season. Please convey to the Importers' Association an assurance of the board’s readiness to discuss through deputation or by letter any clauses with a view to securing the hearty co-operation of all interests and the making of arranvements to work amicably. A few days later it was learned that certain interests in New Zealand (not dairy companies or producers) were sending cables to the New Zealand Dairy Produce Importers’ Association in London which appeared to be intended to create friction between the board and this association, and the board again cabled with a view to removing any doubt as to its anxiety to co-operate. The cable message was as follows: — “In order to avoid any feeling on the part of importers that the board intends to act in any way arbitrarily, please assure them again that the board fully realises that the .success’ of the proposals absolutely depends upon the hearty cooperation of the importers. Hence the board is willing to discuss any clauses of the proposed regulations with the intention of making them satisfactory to both parties. Although the board is at present moving to secure the necessary regulations from the Government, this is only to enable general powers to be obtained. These general powers will not include any details whatsoever, wljich will be a matter of arrangement between the merchants and the board.” To this the following reply has been received: —“The Importers’ Association asks us to send the following message: ‘ The Importers’ Association appreciates your cables and reciprocates the assurance of full co-operation. _ We would appreciate the prior submission to us of the draft regulations to be asked for by you to enable us to confirm the principles and submit any amended details as early as possible should such be necessary.’ ” To this, the following reply was sent; — “ Please advise importers that their assured co-operation is heartily appreciated. The. conditions which the board is establishing here take the form of additional conditions in the license under which the dairy companies are at present exporting. These will . provide that licenses will be granted subject to the following additional conditions: —(1) The board will have power to allocate the consignment outputs; (2) there shall be given to the board copies of account sales with all particulars of the date of sale, etc.: (3) the board shall have power to regulate f.o.b. or c.i.f. sales; (4) provision to enable the board to deal with the practice of consignments being sold unknown to the dairy companies prior to the date of arrival of the steamer. The terms of the conditions of the license between the board and the importers are entirely a matter for discussion and arrangement between the board and importers and will not be set out as conditions of the license issued to exporting dairy companies.”