NEW DAIRY SCHEME

Sun (Auckland), Volume III, Issue 714, 13 July 1929, Page 10

NEW DAIRY SCHEME

“EMPIRE DAIRIES” EXPLAINED BY SPEAKERS PROTECTING THE PRODUCERS WHANGAREI, Today. An explanation of the co-opera-tive marketing scheme for Australian and New Zealand dairy produce was given yesterday afternoon by Mr. W. Grounds, chairman of the Northern Dairy Association, and Mr. W. Goodfellow, managing director of the New Zealand Co-operative' Dairy Company. A DDRESSIXG a meeting convened by him. Mr. Grounds said that the air appeared to be full of rumours, speculation and wonder. There had been deep disappointment at the breakdown of the control policy, and it had become obvious that a scheme of voluntary marketing was the only immediate, practical way. However, nothing effective could be accomplished until the Waikato interests were included. The main points in the agreement were that Amalgamated Dairies be reorganised and a council established consisting of the chairmen of directors of all contributing companies. Each year it would nominate three of its members to the board. ISSUE OF SHARES The provision for dairy companies to grow gradually into the business. Mr. Grounds regarded as most satisfactory and acceptable. If any new issue of ordinary shares were made contributing companies could take up their

quota on the basis of their volume of business. The arrangement was for seven years, subject then to review and mutual agreement, or renewal, or alternatively, the industry might then buy out the interest of Messrs. Goodfellow and Wright and distribute their share among the industry on a supply basis. In marketing arrangements had been made for Amalgamated Dairies to link up with Australian dairy interests by the formation of a company for the joint marketing of Australian and New Zealand dairy production. Amalgamated Dairies held the largest interests in the new company, to be called Empire Dairies, the management of which in London would be in the hands of Messrs. J. B. Wright and A. E. Gough. Advocating acceptance of the scheme as the soundest and most practicable available, Mr. Grounds added that there was no intention of taking advantage of anyone. They desired simply to protect the producers and provide opportunity fen* the fullest development of the industry. VAST MARKET WAITING Addressing the meeting, Mr. Goodfellow said there was great need for price fixation and co-ordinated marketing. A vast market was waiting in Eastern Canada and Amalgamated Dairies this year were going to carry constant stocks at Halifax, selling ox stock at London parity as well as c.i.f. Further explaining the constitution of Empire Dairies, he said that a selling floor in London would be to the mutual advantage of Australia and New Zealand, while New Zealand produce would continue to command the usual premium over Australian. It was hoped that Canada and South Africa would co-operate. Tooley Street merchants would be allowed to sell allocations of produce from Amalgamated Dairies at fixed prices as hitherto, while Empire Dairies at the same time would sell at the same prices on its own selling

, floors in London and other in England, opening- up new Jr 5 ",?* particularly in the west of The speakers were asked j' l " 4 ' of questions, answering Mr. Grounds said the industry? w! “fi sentatives on the board of a mated Dairies would be two Xorth and one from the SouthW® tt*. The voting power on the would be one faetorv one vm.' o '®' .Denmark. * *s i,