DAIRY PRODUCE

Southland Times, Issue 19519, 19 May 1922, Page 5

DAIRY PRODUCE

SURPLUS BUTTER IN LONDON PURCHASE BY IMPORTERS REPLY TO AUSTRALASIAN CRITICISM (By Telegraph.—Press Assn.—Copyright) (Australian and N.Z. Cable Association) LONDON, May 17. Butter importers greatly resent the criticisms which appeared in Australia and New Zealand regarding their purchase of Government surplus stocks, especially the suggestion that they depressed the market and raised it after the purchase had been completed in order to get exhorbitant profits. Interviewed by the Australian Press Association, one of the leading importers said: “The real facts are these : Butter was retailed throughout the country from tenpence to sixteen pence per lb.,with the result that consumption rose from 2500 ton® weekly to between 5000 and 6000 ton®, the demand being so great, that huge supplies of new- butter were also readily cleared. Prices for such have never looked back, but if prices of butter generally had been maintained, consumption would have been so small that Australian and New Zealand producers would have suffered seriously in regard to this season’s output, as the collapse which was created by the British Treasuaxy forcing a sale would have come much later, when accumulation would have been considerably heavier and the loss accordingly so much greater. Importers transferred the bulk of Government butter to big retail combinations for a merely nominal commission. The accusations levelled at importers are altogether erroneous. The Board of Trade did not sell at the request of any individual or combination of importers, but only at the extreme pressure of the Treasury official®. THE POOL SCHEME. LONDON PROVISION TRADE HOSTILITY. LONDON, May 17. (Received May 18, 8.55 p.m.) The committee of the Home and Foreign Produce Exchange, representing all branches of the provision trade in London and the home counties, passed a resolution that the proposed New Zealand produce "pool is against the best interests of the trade, and is particularly undesirable because pools and trusts are invariably disadvantageous to the consumer.

CONFERENCE IN WELLINGTON. A COMPULSORY ORGANISATION. WELLINGTON, Muy 18. A conference of representatives of co-op-erative dairy companies of the Dominion opened to-day. The object is to consider the best means to deal with the disijosal of exported dairy produce. It is proposed to form a company with a capital of £1,000,000, owned and directed by dairy companies aided by special legislation and supported by State financial backing ; the directora to be elected by the shareholder®, the chairman to be a commercial man appointed by the Government; the directors to appoint a board in London which will have power to control prices and regulate supplies ; the Government to legislate making the marketing and all export of dairy produce compulsory through the companies and giving power to make levies not exceeding |d per pound on butter and id on cheese ; shares to be issued to manufacturers in proportion to theii total exports. The South Island delegates expressed disapproval of the scheme in face of lack of details. They had not forgotten the marketing commission, the burden of which was left to the South, to carry. The delegate® had no authority to give away the South Island’® “birthright.” After considerable discussion a motion by Mr Baker (Papatawa) was carried :—“That this meeting, being thoroughly representative of the dairy industry of the Dominion, expresses its entire approval to set up a compulsory organisation to effectually control the handling, distributing and marketing of the export dairy produce.” After further discussion it was resolved that the nominal capital of the Company be £250,000, an amendment for a capital of £1,000,000 being abandoned. On the motion of Mr Vincent it was reresolved in the event of the Government refusing to introduce the necessary legislation for the formation of the company that the committee appointed shall have power to request legislation for the formation of a scheme which will be acceptable to the industry. Mr Corrigan moved that shares should be applied for and allotted to all manufacturers of butter and cheese in proportion to their total export output, the first issue not to exceed £150,000. This was carried Mr Corrigan moved that the company should be controlled by a board of not less than nine directors and not more than thirteen. Mr Baker seconded the motion. Mr Corrigan said it was suggested that the representation should be as follows: North Auckland one, South Auckland two, Hawke’s Bay two, Taranaki two, South Island two. Mr Agar said the southerners would not go back with such a proposal as to re|jresentation. It was childish. Mr Morton thought the directorate should be greater even than thirteen, say 25. After much discussion it was resolved that the directorate should number fifteen. Various suggestions were considered as to how the representation should be allotted. The North Island delegates were willing that the South Island should have four of the fifteen directors, but the South Island wanted five. The chairman said it seemed that, the conference had reached a rock on which it was in danger of splitting. It was a critical point, and one, he thought, that could be overcome.

On his suggeetion the question was left over till to-morrow morning. Mr Corrigan moved that the board of directore in New Zealand should appoint a board in London with at least on? representative each for butter and cheree. and a managing director, the London board to have power to control prices and regulate supplies, it was distinctly understood that the existing channels of distribution would be used. In reply to a point raised by Mr Corrigan, the chairman said the whole object of the pool would be defeated if forward Belling for the season was permitted. The motion was carried. It was resolved that the Government be asked to introduce th® nerewary legislation to make compulso’-v the marketing of all export dairy produce through the company, and give power to the directore to make all necessary levies on the produce, such levies to be on a percentage basis and not to exceed If per omt. on the grow returns, and that in the first instance the levy be credited to share capital. It was resolved that the Government be asked to give the necessary guarantees for financing shipments, etc. It was resolved to recommend the Government to establish a superfine grade for both butter and cheese on the basis of 92 points and over for butter and 91 point® and over for cheese.