DAIRY CONTROL

Poverty Bay Herald, Volume LV, Issue 17238, 19 April 1930, Page 5

DAIRY CONTROL

THE BOARD'S' ACTIVITIES REPLY TO CRITICISM OPERATIONS JUSTIFIED (Special to the Herald.) WELLINGTON, this clay. Recent criticism oi the work of the Dairy Control Board has prompted a comprehensive statement hy the actingehairman of the board, Mr. J- Hine, ■who stated to-day that judging by the various comments in the press and at Farmers' Union meetings, it would appear as if there was an attempt at organised propaganda for tiie purpose of belittling the Dairy Board's work, and inspired suggestions for its merger, if not abolition, appearing from time to time could not remain unchallenged. "It is hardly necessary to reiterate the tact that whilst always opposed to compulsory marketing and price- fixing," said Mr. Hine, "1 have consistently maintained that the board was needed as a central organisation in the industry to attend to shipping with its many problems, advertising, scientific research, marine insurance, and supervision of dairy produce in transport and cold storage until it reaches the market. The board took over the shipping contract in 1923-24 and the rates secured show tinallv a saving) of £335,596 per annum, as'between the rates ruling in iy23-24 and tho present rates of freight. Let it be admitted frankly that some of these reductions would have been secured to the industry in any case by reason of a general fall in prices. However, until the Dairy Board came into peing, no organisation existed that could legally bind the industry to a shipping contract, or negotiate effectively with any shipping line other than those at present trading with New Zealand. Undoubtedly the legal power to negotiate is a big factor in securing the greatest reduction possible. MARINE INSURANCE

"Before leaving the question of shipping it should be stated that for years prior to the inauguration of the board there had been an insistent demand for greater supervision of shipping and transport. It was found impossible to give this ' service, as there was no machinery to provide for the cost being borne equitably by all dairy producers. The setting up of the Dairy Board solved the problem, as the board was able, out of its lew, to provide the necessary inspectors. As a result, the handling of tlairv produce, its transport, and cool storage, are on a better basis than ever before. Definite evidence in support of this has been given not only by the director of the Dairy Division, but also by manv prominent dairymen who have visited Great Britain in recent years. "For years prior to the establishment of the Dairy Board, the dairy associations had worked hard to effect reductions in the cost of marine insurance, but without anv appreciable result, the reason being that they were unable to guarantee any given quantity ot produce to the underwriters. Hie Dairy Board, because of its statutory powers, was able to offer the underwriters the whole of the dairy produce being exposed The effect of this was to enable the board in 1924 to make a contract of marine insurance on export dairy produce which, along' with the reductions since secured, means a saving to the industry of over £32,000 per annum. It also made possible the securing of the best marine cove? that has ever been in existence in New Zealand. Export dairyproduce is protected under: this policy from the time the milk or cream is received at the factory until 30 days aftei reachini? its destination against every risk whatsoever. There is a condition in the contract which proves the value of the board's work, and it is that this contract is subject to the Dairy Board continuing its inspection and supervision." „ . , „„„:,. "In past vears, again ami again has the complaint been made that _ tn 6 handling of dairy produce in British ports has been anything but satisfac-tory,-and that considerable deterioration in quality resulted by reason of these conditions. The board took this matter up and was able to so arrange that all dairy produce would be landed and sorted in cool storage. By reason of the board being able to enter into a contract with the cool storage authorities overseas the cost of this was reduced by an amount which means a saving of approximately £25,000 per annum. BOARD'S EXPENDITURE

"The total ordinary expenditure of the board for the year ended July 31, 1929, was £27,088 7s lid. From tfois should be deducted some £SOOO paid to the dairv associations by factories in the way of annual subscriptions tor doing the shipping work, and winch they now do not pay, leaving £28468 7s lid A further reduction of £2479 should be made for the shipping inspection work, which is necessary whether the board is in existence or not, thus reducing the total to iI»,WU 7a lid. Against, this take only the saving on marine insurance of £32,000 per annum, Which is entirely due to the board, and the position is that the board, instead of being an expense to the industry, is really responsible for a considerable profit to it, and that without taking any account of the great reductions made in freight rates and cool storage charges overseas. It is interesting to note that the value of the export dairy produce from New Zealand for the year in which the above expenditure was incurred, was over £20,000,000. "The annual expenditure of £15,000 on advertising cannot in any way be, included in the 'cost of the board. Tho industry has asked for years that advertising be done, and it is never more necessary than when prices are low. The board, by reason of its position, has been able to establish a national brand for New Zealand dairy produce, and the whole of the advertising is built around this brand, with the object of establishing a goodwill rfor the whole of New Zealand's produce. Advertising expenditure by others has been allocated to individual brands, this being only natural in view of the fact that the owners of these "brands paid the cost. SCIENTIFIC RESEARCH

"There was also a direct mandate from the industry that its problems of quality should be dealt with from a scientific point of view, and the payment of some £4OOO from the board's levjW'or scientific research was a grunt long overdue and cannot by any stretch of imagination be inclnded under 'cost of the board.' "There are number of other matters that could be, touched upon, such as improvements brougljt about in the transport, steamers, -more complete statistics, etc., which have all resulted from the board's efforts, but enough has been written to prove that those who are featuring the 'cost of the board' are doing so in complete ignorance of the position. "It is well to remind ourselves that the board's work and resulting savings secured and improvements effected, are in the interests of the whole dairy industry. Every supplier to tho

smallest dairy factory in the Dominion receives his share of the benefits obtained by the board because of its bargaining capacity. Larger factories, or a combination of larger factories, might obtain a measure of these advantages, but the rank and fill' would naturally be left out. The strength of the board's work is that it ensures to every factory that its interests are protected. "The foregoing evidence of the various activities of the hoard should be a sufficient answer to critics, and wfVh a full knowledge of recent happenings 1 have no hesitation in saying that tin' maintenance of the board as a separate entity, elected by the vote of every producer, was never more necessary to the industry than In da v."