PRICE OF MILK

Otago Daily Times, Issue 23203, 29 May 1937, Page 21

PRICE OF MILK

■PRODUCERS MEET AGAIN CITY COUNCIL SCHEME COMMENDED "ONLY SOLUTION OF PROBLEM" CR J.- W. MUNRO, M.P., ADVISES FARMERS i ~ ~ i j Milk producers for the town supply i from the nearby farming districts of Dunedin met again in the Early Settlers' Hall yesterday to find a solution of the problem of low prices for milk on the farm. There was an attendance of about 80, representing the combined organisations which have now amalgamated, and which in future will be known as the Otago Milk Producers' Association. After debating a variety of issues, and listening to the opinions 'of CrJ. W. Munro, M.P., on the subject of a municipal milk supply in relation to their plight, the meeting broke up, having decided to send a deputation to wait on. the City Council to urge the municipalisation of milk supply, even if it means " a deputation twice a week for seven years." Mr Munro told his audience that if he were Minister of Agriculture he would not think of fixing a price, no matter how much they asked him. Conditions in the trade were too chaotic. The only ray of hope he could sea for them was a municipal milk supply, on the subject of. which city councillors were almost 100 per cent, unanimous, but he reminded them that such a scheme would cost about £280,000 and wduld probably be turned down by the ratepayers. At the conclusion of the meeting the newly-elected chairman (Mr W. Blackie) remarked that there was nothing much they could do except make their own arrangements and stand out for as near Is a gallon as was possible. They had all heard what Mr Munro had-said. "He has promised to help us," he said, "but these fellows all have to make promises. It is possible that he will never give the matter another thought. Still we shall see."

As the delegates rose to leave the hall the opinion was very definitely expressed in two places that "another meeting has gone and we are just where we were before. We've done nothing."

The chairman (Mr D. J. S. Robertson) said that for years they had been receiving 6d a gallon for their milk. This was an equivalent of 10s per day per man for a 16 to 18-hour day and out of that income they, had to pay interest, rent, rates and working expenses. It placed them in a position which the Government would not tolerate for the ordinary working man. And all the time overlapping and wastage in distribution and retailing were reducing the returns available to milk producers. They honed Mr Munro would be able to advjse them what to do,

ADVANTAGES OF MUNICIPAL SCHEME Mr Munro said that the General Committee of the City Council, which was- investigating a municipal milk supply, was, very sympathetic towards inHk producers. He thought their salyation lay in a compuliiory municipal supply,' based on the complete CQ-pperation of every producer, Personally, if he were in the Minister of Agriculture's place he would not attempt to fix the price of milk in face of the present chaotic. §tafe of the market. There was too < much wastage everywhere. «Of course,;, they might get somewhere'-with: a .„c«i-operative system of distribqtiotti taut it depended on everyone supplying only, that one organisation. Could they rely pn general co-operation? From his know* ledge of human nature Jie would doubt it very much. The speaker then referred to the Wellington city milk supply, and said it was an ideal system that had worked successfully for 14 or 15 years. Moreover, he could say that milk producers under that system were the bestpaid in the Dominion. In his opinion the least difficult method of attaining their .finds was to support "a proper municipal scheme, under which the City Council could control the sale of all- milk within the city boundaries, Auckland had attempted it, and by a sort pi hybrid form of co-operation they had gathered most of the interests into a single organisation. They did not have complete control, however, and that was where the system failed to measure up to the standard of the Wellington scheme, It might be thought by- them that, if the Dunedin City Council took control, the producer would not get the best deal. He could only point to the Wellington scheme, and emphasise that useless fompetition and economic wastage had been eliminated and complete control hsd been established to the mutual advantage of producer and consumer, Hewarding their demand for a higher price, he thought they should get it, r-d they should never rest until they did get it. Their only hope was in pro Der organisation under it municipal milk scheme established on a compulsory basis with complete control authorised by legislation.

ESTIMATED COST £250,000 Mr Munro said there was some diffi> dcnce in the City Council about such a scheme. It would cost about £250,000 to. put the system into operation, and he was doubtful whether the City Council as at present constituted could be influenced to agree to it. That, however, was Avhat they must work for.- Other methods might bring temporary results, but the only permanent benefit would be from a municipalisation of the trade. The City Council, however, had to watch the interests of ratepayers and consumers first, so that the initiative must come from the producers. There had to be a united front.

A milk strike, a; suggested at a previous meeting, would not be wise in his opinion, Mr Munro said, though they could not be blamed if they took such drastic action. But they should keep on requesting the Citv Council, and with proper organisation and sustained effort, the chances were that the Council could be persuaded to do something. Consumers would not do it. In fact, if a loan had to be raised —and it would have to be financed out of loan money—the ratepayers would probably turn it down, as they would not be vitally interested personally. MATTER OF URGENCY The chairman said it was disappointing to hear Mr Munro say that a fixed price for milk determined by the Government was not workable. Further, the City Council had a duty to the milk producers, and if it did not recognise it, it should not be surprised if producers suddenly told the city to find its milk where it could. Mr A. J. Cameron said the matter was urgent as far as producers were concerned. It was a question of an immediate solution or bankruptcy'before the end of the winter. Producers could not wait for the council to make up its mind, and they were not going to wait. The whole matter would be settled in a fortnight. In fact, it was nearer the mark to say three days. The trouble was with the wholesale trade. The small consumer was paying enough for his milk—too much, in fact. Hotels and wholesalers were getting cut rates, and most of the wholesale shops were only selling milk as a " blind ' r for Sunday and other after-hour trading in other commodities. It was no good saying "wait." They could not afford to wait. CITY COUNCIL'S POSITION Mr Spoor suggested that it would take the City Council two years, to get a scheme into operation. If, in the meantime, the producers went on strike what would the council do to force the milk on to the market? Mr Munro: What could the council do? The Government might do something.

Mr Spoor: What about the Board of Trade?

Mr Munro: Something might be done there, but I do not know just what. There have not been many precedents in the way of producers' strikes. There followed a debate on the impossibility of a Government-fixed price for milk, and it was generally agreed that the great difficulty was that too great a proportion of the returns from milk was absorbed by the high overhead costs of competitive distributive services. If a central municipal scheme were established, the producers would get everything there was from their sales of milk, less the reduced costs Involved by centralised distribution. Mr Munro said that the City Council could not get the authority to fix the price of milk or to restrict the sale of milk in the city. Mr Spoor: Why cannot the council fix a price if it can fix a licence fee? Mr Munro: The council has the power to take steps to ensure a proper supply of milk, but it could not set a price. The chairman, to Mr Munro: I take it that you regard Government intervention and a co-operative supply scheme as impossible. Our only hope, according to you, is a municipal scheme. Mr Munro: That is so. The chairman: I have it on good authority that to pay us Is a gallon the companies would have to gel Is lOd a gallon. At present they are getting Is 4d. 'That would mean, the chairman continued, that a co-operative company, after paying Is a gallon, would have 4d a gallon to run its business and effect distribution. The only hope they had of getting Is a gallon was for the lOd a gallon now absorbed by costs to be reduced by a central distributing system.

UNREGISTERED MILK The question of the use of unregistered milk was discussed, and complaints were made that, whereas owners of registered herds were receiving Ud a gallon, one company in Dunedin was drawing milk from unregistered herds at Momona and paying lOd a gallon for it. Mr Munro was asked if anything could be done to prevent that practice. The opinion was expressed that all that unregistered milk was not being separated. Some of it was definitely second grade milk. Mr Munro suggested that a resolution dealing with the subject should be passed by the meeting and forwarded to the Minister of Agriculture. His own opinion, however, was that the only solution of their problem lay in a municipal supply, and he could assure them that he would do all he could to help them in the City CounCl] - He knew that they needed immediate action, but a city supply would take time, and how they were going to carry on in the meantime was their problem. He could not advise them what to do. He would say definitely that they should get a higher price. The chairman; Are :he Labour members of the council in favour of a municipal supply, because I kl ww that a majority of the other side agree with the idea. Mr Munro: I can say that the council is almost unanimous on the subject, but I would remind you that the final decision rests with a poll of the ratepayers, because it would have to be paid for out of loan money. Mr Spoor moved a hearty vote of thanks to Mr Munro, who then withdrew.

ELECTION OF OFFICERS The meeting then proceded to the election of officers in the new association, formed by the amalgamation of the two organisations. The following were appointed:—President, Mr W. Blackie; vice-president,-Mr A. Spoor; secretary, Mr G. T, Bathgate; treasurer, M:r A. Spoor; committee—Messrs Dick, Donaldson, Black, Hurst, Miles, and Graham (Otago Peninsula), Messrs Hall, Morton, Don, Chapman, and Baird (Pine Hill-Mount CargilUWaitati), Messrs Cameron, G. Ford, P. Ford, P. Bathgate, F. M'Hattie, and Carroll (Taieri). It was decided that the combined organisation be called the Otago Milk Producers' Association. A VARIETY OF OPINIONS

Mr Blackie, who now took the chair, said that all they could do now was to sit on the Town Hall steps arid force the hand? of the City Council. He believed the council would do something, but in the meantime what were the producers to do? Mr Murphy asked whether any endeavour had been made to bring about a conference between the company managers and the association. Mr Spoor said that one manager had refused to meet the association at any time.

Mr Murphy: I suppose that company is sitting tight behind its contract payments.

Mr Robertson suggested that, if the companies. would not come to them, they should go to the companies.

"BEATING ABOUT THE BUSH"

Mr Cameron said that they were only beating about the bush when they talked of a conference. One manager was ruling the whole situation, and suppliers were afraid of being disciplined. ) A cross-table discussion followed on the subject of the treatment meted out to suppliers by different companies, followed by consideration of town prices, until an objection was raised that the meeting was getting away from the point. Mr J. Hurst suggested immediate organisation and the co-opting of every producer in the district with a view to holding a general meeting, at which every single farmer concerned would be present. They should pay a skilled organiser. He could do the job in a week.

When the proposal was introduced in thq form of a motion there was a determined outcry that there were no funds and that it was merely putting things ofi! again.

Mr Robertson moved as an amendment that the organisation be left in the hands of the committee appointed that morning. The amendment was rejected, and the motion was carried.

The chairman said they were up against the question of contracts. Free suppliers should stand out for a higher price—as near Is as possible. They could not ask those bound by contract to prejudice themselves or pour their supplies of milk down the drain. Free suppliers should make their own arrangements and intimate that without a better price they would send the milk elsewhere. That was all they could do in the meantime. In addition, they could keep " hammering away" at the City Council.

Mr Landreth moved that a delegation be appointed to wait on th. City Council and press for an immediate establishment of a municipal milk supply. Messrs Blackie, Spoor, Baird, Hall, arid G. T. Bathgate were appointed a deputation.

It was at this stage that disappointed voices were heard to remark that the suppliers were back where they were before they started.