DAIRY MARKETING

Poverty Bay Herald, Volume LX, Issue 18236, 3 November 1933, Page 10

DAIRY MARKETING

CONTROL BY BOARD I ! PROPOSALS EXPLAINED j NEGOTIATIONS WITH LONDON (Per Press Association.) WELLINGTON, last night. Mr. T. (_'■ Brash, secretary ot the New Zealand Dairy 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 cable message conveying the recommendation of the advisory committee of, the New Zealand Dairy Produce finporters' Association of the United Kingdom to the effect that some action was necessary to prevent the practice of selling consignment produce under 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. W. A. lorns, chairman oi the board, left for London early in i March, he had the instructions of 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 io consider the problems of marketing. Alter a number I of meetings the ‘committee put lorwaril to the full meeting of their association, certain proposals which were [ unanimously adopted lor transmission to the board. i THE MAIN PROPOSALS > “When Mr. Joins returned to New Zealand the board considered these proposals, and after making some amendments intended to safeguard the interest of the industry, the board submitted its proposals on September 20 to a Dominion conference of 45 delegates, accredited representatives of dairy companies appointed from the different wards throughout the Dominion. This conference heartily supported the proposals. “In the. main these proposals pro- [ vide : | “(a) That in co-operation with dairy I'companies, the hoard shall allocate consignments to merchants. It goes without saying that this will lie done with : as littie dislocation as possible, i “(h) That the board shall be supplied with full particulars of the prices at ! which the consignments are sold, with J the date of sale, etc., together with purli ticulars of all stocks held. I “(c) Regulation of f.o.b. sales. The board placed on record its decision that j this particular regulation shall be so handled that f.o.b. or e.i.f. sales either ! for immediate or forward shipment shall be made possible. “(d) That merchants handling New Zealand dairy produce in Great Britain I 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, and again let us say, solely with the object of assisting the producers. The issuing of these licenses will naturally be discussed with Loudon importers, and circumstances are bound to arise from time to time which will make reconsideration of the conditions necessary. DEPRESSING THE MARKET. “To enable the new marketing' conditions to become operative, certain alterations will require to be made in the license under the terms of which 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 I new conditions l'or export licenses will provide that the board will have certain control over the allocation of consignments, and the regulation of f.o.b. or e.i.f. sales in New Zealand. Provision will also be made to prohibit sales of consignment produce unknown to a dairy company prior to the arrival date of the steamer, thus seeking to prevent a practice which so seriously undermines the market. "The board is moving towards amending the conditions of present licenses field by dairy companies, but it is unlikely that any of the regulations will come into operation for the current season, except, perhaps, the provision to secure returns of account sales, dates 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 merchants indicate, is continually depressing the market. “To assure dairy companies of the earnest desire of thfe board to establish conditions that can be worked harmoniously with merchants, and to retain their goodwill, the board sent the following cable message immediately after its last meeting on October ‘The board is going forward to securing the necessary regulations to put into operation the marketing proposals agreed upon. The date of commencement is not yet lixed, but it Is unlikely that any portion of the regulations will take effect until next season. 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 ail interests, and making arrangements to work amicably.’ <' O-OPE It A TlO N ESSEN TIA L. “A few days later it was learned that certain interests in New Zealand, not dairy companies or producers, were sending cable messages 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: ‘ln order to avoid any feeling on the part of importers that the board intends to act in any way arbitrarily, again assure them that the board fully realises that the success of the proposals absolutely depends upon the hearty co-operation 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 parlies. Although the board is at present moving to secure the necessary regulations from the Government, this is only to enable general powers to bo obtained. These general powers will not include any details whatsoever, which will be a matter of arrangement between 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 cable messages, and reciprocates your assurance of full co-operation. Would appreciate 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 at the earliest possible time should such be necessary.” TERMS OF LICENSES. “To this the following reply was sent: ‘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 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: Cl) there shall be given to the board copies of account sales, with all particulars of date of sale, etc.; (3) the board shall have power to regulate 1'.0.b. or c.i.f. sales; (4) provision to enable the board to deal with practice of consignments being sold unknown to dairy companies prior to the arrival date of the steamer.' “The terms of the conditions of the license between the board and importers is entirely one for discussion and arrangement between the board and importers, and will not be. set out is the conditions of the license issued to exporting dairy companies.”