SOUTH ISLAND DAIRY ASSOCIATION

Otago Witness, Issue 2934, 8 June 1910, Page 8

SOUTH ISLAND DAIRY ASSOCIATION

ANNUAL MEETING. The annual meeting of the South Island Dairy Association of New Zealand (Ltd.) vas held in the Board Room of the Agricultural Society's Buildings in Crawford street on the Ist. The chairman of directors (Mr J. E. Hurdlay, of Timaru) occupied the chair, and the following other directors were present: Messrs J. Barnett (Christichurch), W. J. Bolt (Dunedin), and' Hugh M'Call (Seaward Downs). Mr D. R. Hunter (Edendale) was not present owing to illness. The delegates present were: Messrs Fisher (Merivale), Lumsden (Drummond), Ross (Edendale), Marshall (Edendale), Gray (Mataura), Schmidt (Woodlands), Bacon (Gore), Gait (Tuturau), Arnott (Wyndham), Campbell (Wyndham), Ward (Mataura Is ; land), Aitken (Mataura Island), Stirling (Toi Toi), M'Kenzie (Toi Toi), Arnott (Seaward Downs), Parker (Stirling), Vyner (Ryal Bush), Winning (Mataura), Edie (Morton Mains), Dickie (Tuturau), Rendall (Waikouaiti), Fowler (Kennington), Fowler (Ryal Bush), Coster (Wiriton Co-operative), Wayte (Otamita), Orosbie (Glenham), Mackrell (Saxton, Canterbury). Williamson (Wright's Bush), Oldham (Pyramid), Dumbleton (Otamita), Nicolson (Taieri and Peninsula), King (Awarua), M'Gibbon (Mataura),, Hill (Aparima), Scoular (Pukerau), Horrell (Te Tua), M'Bride (Mataura), Brown (German Bay), Diack (Henley), Perriman (Toi Toi), and Major (Gorge Road). The dairy staff of the Dominion was '"also present—namely, Messrs Cuddde (Chief Dairy Commissioner), Singleton, Sawers, Bowman, Graham, and Ross. ANNUAL EEPORT. The Chairman, in moving the adoption of the report (already published), and balancesheet, said that during the year the association had been registered, according to the desire of the members. The committee had also considered the position of the secretary, and it was agreed to appoint Mr Scott, who had agreed to give his whole time to the work of the association. The committee did not regret the appointment, as Mr Scott had carried out his duties most satisfactorily.—(Applause.) _ A conference with the shipping companies was held in Christchurch, with the result that the association renewed the shipping contract for five years on the lines of the previous contract. Other steps taken by the committee during the year were referred to. Since last meeting the association had lost two of its oldest friends—Mr Jas. Milne and-Mr John Stevenson. He could' only 6ay that, personally, it was a matter of deep regret to miss them, and he wished to publicly acknowledge the good work done by both gentlemen during their connection with the association. Regarding the balance-sheet, there were several items that would not occur next year. The expense of registering the association was an item that would not come up again; it cost £6O. Next year, instead of having a credit balance of £lO3, they ought to have a • balance of considerably more, especially if the companies insured through the association. Mr Barnett seconded the motion, which, was carried. SCHEME FOE SELLING? DAIRY PRODUCE. The scheme for selling dairy produce through the association, as suggested by the secretary, and amended by the committee, and submitted by circular to all members for consideration, was then brought forward. Mr Arnott (Seaward Downs) said this was really the most important business of the meeting. The scheme, he had no doubt, would be discussed at length, and he would simply move—" That the selling scheme, as suggested by Ihe committee, be adopted with such a'ltewtions as the meeting may deem fit." Mr Schmidt seconded the motion. Mr Bacon moved as an amendment — "That the selling scheme, as suggested by the committee, be not adopted." One of the principal points to which he took exception was that of fixing a reserve price. In what way the reserve price was to be fixed had not been stated by those who formulated the scheme. The Secretary: The factories must fix it. Mr Bacon said if they left it to the factories they would .have many different ' opinions. And if the factory directors were to fix the reserve price, how could they preserve that secrecy which was so necessary in these 'matters? Information would leak out that should not leak out. Also, if the cheese was sold in the Dominion and a reserve price was put on, so much would be sold and so much would be above the reserve. That which was not sold would have to go Home on consignment, coining into competition with that which was sent from the Dominion, thus tending to lower prices, especially if the market was a falling one. That' was one reason, why they should not adopt the scheme. The Chairman said he could not accept the amendment, as it was a direct negative to the motion. Mr Wayte moved as an amendment — " That, as an alternative scheme, the selling of cheese by auction take place in some central depot in London." The sale of the dairy prduce by auction in New Zealand would not serve the purpose desired —it would not bring the manufacturer any nearer to the consumer th'an at present. If they sold in London they would he brought into touch with all the big sellers in the provincial towns in the Old Country —a fact which would eliminate the middleman to some extent. Mr Horrell seconded the amendment. It seemed to him the time was not ripe to sell their cheese in the Dominion. In the Old Country they would find as strong competition for the produce as there was in the Dominion. Mr Schmidt said he would like Mr Wayte to give some idea of the financing of the scheme he proposed... The Chairman said the buyers had been invited to give their opinion on the subject, and amongst them was Mr Reynolds, who 'had kindly offered to address the meeting and give the result of his experiences as a visitor and a business man in London some time ago, without any reference to his position as a buyer of dairy produce. Before Mr Reynolds was given

an opportunity to speak, did anyone wish to speak further to the amendment ?

Mr Coster said, if the amendment was a part of the scheme, some of the delegates would support it; if not, they might have to vote against it. Mr M'Call said the amendment should be seriously considered. It involved an enormous scheme. If a selling scheme was adopted at all, it should be kept in thenown hands. It would surely be presumption to send a man Home to look after their cheese in the middle of, London, competing against all the big men in Tooley street irrespective of what it would cost them. ' The Chairman called on Mr Reynolds to give his opinion on the matter. Mr W. E. Reynolds said the meeting had to consider, not so much a matter of policy as a matter of system. To attempt to get all the factories to agree to sell their cheese or to consign their chees» was perhaps a big task to tackle. A factory might get a good.-offer in the early part of the spring and sell. However, it was really only a system that was now suggested, arj he did not see why a number of the factories should not adopt it, even if some of them did not hold to it. If a good offer came along, it seemed to him that under the proposed scheme one of these factories could still sell. But those who, in the early part of the season, signed an undertaking so as to give the new system a start would offer their cheese at auction and sell monthly, and observe the undertaking. What was proposed was a system of selling monthly by auction, instead of, as at present, having 17 or 18 buyers going to the factory door. The next thing to consider. was that it was not a very fair deal, either for the factory or the buyer, to buy cheese in September for. delivery six or* eight months ahead. Further, Jet them suppose that three factories close together consigned. Two months later a fairly good price Was offered, and one factory sold. The other two might desire to consign, and yet were prevented from doing so on account of the bigger price paid out for the butter-fat by the* factory that had sold. They were, therefore, forced into the position of selling. On the other hand, if they were selling from month to month, they were not taking any risk of that kind. If they did not get the price they considered a fair one any month, they could consign through the association. He suggested Dunedin as the centre between Lyttelton and Invercargill where the business should be conducted. Then, as the export of dairy produce became greater, they should tap all the ports of Great Britain, and so get it into more channels than it had found in the past. That could be done better through the association than by consignment direct. Why miss Glasgow, Liverpool, Manchester, and Bristol? Round Manchester alone there were 22,000,000 people, and in Glasgow there was a very big population. Why should not monthly shipments go to these places ? _ The cheese should go to the pubiio who distributed it at Home, giving them as much as they could comfortably handle, and let them, charge a fair commission. He knew one firm in Glasgow that had obtained the output of one New Zealand factory for the last 10 or 12 years. There was no doubt the present eystem was as bad as it could be.—(Applause.) He would like to see a trial given to the proposed system. It could bo done by a dozen or two dozen of the factories in the_ South Island agreeing to it, and in offering their cheese they were not bound to sell it. They could put a fair price on it, and if "that price was not realised the cheese could be consigned. Mr Vyner asked Mr Reynolds if the present system had been bad for the sellers during the past three years. • Mr Reynolds: I do not say it has been bad for' either the buyers or the sellers. Mr Vyner: Why, then, is it bad? Mr Reynolds said it was bad because it was not businesslike. Mr Vyner said it had been fairly successful for the sellers. Mr Reynolds: May be it _has, but it is bad from a business point of view. Mr Vyner said, at any rate, it was a way that raked in the dollars for the seller. Mr Reynolds said it was all right-for the day, but if they looked, to the future he questioned if" it was a good policy. Mr Winning said he would prefer the whole output to be consigned to a number of responsible firms, who could place it in the proper channels in England. Mr Bacon said he thought the whole of the output should be put into the hands of the association, if it could get the price, and, if not, then consign it. The chairman: That is what we are trying to get. Mr Bacon: But we don't want monthly local sales. The Chairman said the scheme was only a preliminary one, and was open to alteraton. On the motion of the chairman, a vote of thanks was accorded Mr Reynolds for his address. Mr Bacon intimated that he had another amendment to propose, as follows:—" That al factories place. their outputs in the hands of the association for disposal, either by direct sale in a line or, if that is not possible, to send it on consignment." The Chairman pointed out that the difference between the circular sent to the factories and the amendment was very little. It was a question of " direct sale in a line " as against monthly sales. Mr Bacon: We want the old method of selling in one line open to us. If, after all information is obtained, that cannot be done, then let it be consigned. Mr Barnett said if they started the new system they must start it with all the factories that joined, and if the system was a success, the others would join in it. A proposal to refer the Question to a committee to draw up a workable scheme. to be considered on the following day, was not entertained. , Mr Bolt said that if they attempted to foroe every factory into the system they would fail, because it was a big question, it was asking all the factories to give the control of their produce into the hands of the association, and it seemed to him the factories in Otago were not ready to d °Mr Scott said the scheme put forward was only a suggestion for those who wished to adopt it. It was a purely voluntary P The 6a Chairman said the form of the scheme was in the first clause Let them decide on that clause first, and then alter flie others as they pleased. Accordingly, the motion and the amendment were withdrawn and, on the motion of Mr Fisher, seconded by Mr M Gibbon, the first clauss was put in this form: " Your committee, after due consideration of this matter, resolved upon a scheme lor the disposal of dairy produce, and it sufficient signatures are received, it will t><?