DAIRY INDUSTRY

Southland Times, Issue 25385, 12 September 1935, Page 6

DAIRY INDUSTRY

CREAM AND MILK PRINCIPLES FOR RATIONALIZATION COMMISSION’S WORK (Per United Press Association.) Palmerston North, September Ilin the course of an interview Sir Francis Frazer, chairman of the Executive Commission of Agriculture, which is visiting this centre to hear the evidence by dairy companies, said it was not the intention of the commission to use the big stick to the industry. However, after all the information had been collated, the commission would have to frame some broad principles for the rationalization of the cream and milk supply. The commission was holding its hand because it was more satisfactory, owing to the diversity of local conditions, to get the companies concerned to make arrangements best adapted to their own circumstances, as well as to give them a voice in any such decision. Further, the commission was not doing anything of a compulsory nature at present, because it had found conditions varying and so many cross currents and complications that it had decided to secure as much information as possible about the difficulties existing. Both the Dairy Board and the commission at present were jointly considering the whole question of the export market, stated Sir Francis. The stock position was very largely responsible for the rise in butter prices, also the shortage of Australian supplies early in the season. The price was still operating, but it was not known what effect speculators would later have on the market. “We can only hope indications such as show seasonal drop in prices will be delayed longer than usual,” he said. Discussing cheese payments as compared with those for butter, Sir Francis commented that this was a different problem. Cheese and milk suppliers should be receiving 2d a lb more than butter factory suppliers because of the extra costs they had to meet, but actually in some cases they had been receiving a little less. Cheese factories naturally wanted to retain their identity. Some had their liabilities, but it was a serious thing to have to decide whether a farmer should supply a cheese factory for an indefinite period when the possibility of his going to the Mortgage Court for relief or keeping out of it depended upon the difference in the nayments. The commission members and the Dairy Board are now in conference with delegates from the dairy factories of Manawatu and the West Coast and will later undertake an economic survey of the industry in this area at the reouest of the Dairy Factories’ Association.

The following resolution was carried: With the object of conducting an economic survey within the territory from Otaki to Taihape the Commission be requested to make: — (1) An inspection of each factory with regard to location, capacity, equipment and manufacturing and cream collection costs.

' (2) Make each company give evidence separately in camera regarding manufacturing operations, cream collection and the like.

(3) To arrange for an independent examination by qualified persons of the operating costs of each company. (4) Collect other evidence necessary for the purpose of ascertaining a true comparative statement of the position. (5) To advise companies of the procedure necessary to bring about any desirable reform. The commission was asked to appoint two dairy company secretaries to make the detailed investigation asked for. ''