Dairy Produce Board

Te Puke Times, 16 September 1932, Page 3

Dairy Produce Board

Address By Mr C. L. Luke

The following address was delivered by Mr C. L. -Luke, local representative on the N.Z. Dairy Produce Board at Whakatane yesterday and is to be given at Morrinsville to-day: — Ottawa Conference

Before dealing with the work of the Board and the Report and Balance Sheet I wish to briefly refer to the Ottawa Conference. The Board was of the opinion that this Conference would be one of the most important which would ever happen in the history of the Dominion and gave a lot of time and thought in preparing material for the delegates, and I think we were very fortunate in getting Mr Goodfellow to attend the Conferencb on behalf of the producers. I think the dairy farmers have every reason to be very gratified with the result of the Conference and our best thanks is due to those delegates, both political and the advisory members, who have so ably represented us there. Although one cannot review the whole position until the full details are made known, the granting of the free entry of Empire Dairy Produce and the placing of a duty of 15s per cwt on the foreign butter and 15 per cent on foreign cheese will be of immense value to the industry here. Taking the Conference as a whole I cannot help thinking that following on the Lausanne Conference and the war loan conversion that a great step forward toward the restoration of confidence has been achieved. The ground has been cleared for the examination of those further problems of currency, exchange and tariffs which were blocking the road to prosperity. As many of those present are not directors of a Dairy Co., I propose to deal rather fully with the work of the Board. Levy The levy on butter is 1/32 of a penny per lb; the levy on cheese

is 1/84 of a penny per lb., equal to Under 5d per cow per annum or an average Of roughly 13s per supplier. Work of the Board

1. To act as shipping agents for Dairy Companies. 2. To assist in marketing the produce by ; , (a) Regulating the flow of shipments so as to avoid over supply at any period. (b) Ensure that quality and condition are maintained until delivery to the purchaser. (o) Reducing costs (d) Stimulating interest and demand among consumers. (e) Giving information, advice and assistance to dairy companies on all matters relating to marketing. How the Board is performing this work

In its duties as a shipping agent it'is handling an enormous amount of detail work with real efficiency and with praotically no complaints, During the year its work was increased by the Exchange Pool Regulations and by the Empire Imports Tariff Act. In both of these cases it undertook Work which would have had to be performed by factories agents. Owing to the fact that the Board had control of all New Zealand dairy exports,, it was able to make comprehensive returns under both the above Aots and these were acceptable to New Zealand and the British Governments. Regulation of Shipments The Board continues to regulate shipments to the United Kingdom afterdose consultation with its Londan Manager and to London Importers. Owing to the varying speeds of steamers and weather conditions, difficulties are always cropping up, but on the whole there have been few complaints. It is Impossible in every instance to foresee in these days what extra quantities of butter may be diverted to England owing to unexpected action by European countries in increasing tariffs and by applying -quotas. Regulation was never more • necessary and the Board has to work months ahead and can only do so in the light of the position as it can reasonably be forecasted.

Ensuring quality and conditions

The Boards Inspectors in New Zealand and England spare no pains in their endeavours to ensure that butter and cheese are handled properly during loading, in transit to and discharging in England and, when requested to do so, they have investigated carriage conditions between the factory and grading store with a view to obviating dirt and damage Under this heading also ttomes the Boards Financial Support to the Mamy College, Tbs value of this work may fo&t be evident at once I feel sure the Dairy Industry will be thankful in a few years time for having established and maintained the Institute. Further the Boards London Manager and staff *nako constant enquiries among

buyers as to the quality of our produce. Reductions in Costs

Freight.—ln this the Board has been most successful and the saving in freight sinco the Board took charge amounts to the large sum of £355,000 annually. Our rates are considerably lower than Australia is paying. The position is Butter per box —New Zealand 3s 4.8 d, Australia 4s 9.33 d ; Cheese per pound. —New Zealand .7437 d, Australia 1.045 d. Thus on 100,000 tons of butter which we exported this season our freights would show a saving of £275.000 over Australia and on 88194 tons of cheese £248,000 making a saving of £523,000 over Australian prices. Further if we had not got a contract we would have had to pay the 10 per cent exchange premium. Marine Insurance

Here again the Board have been very successful, and the last contract entered into a few months ago will show an annual saving over that in force in 192324 of £59,000 and this I think is the finest insurance cover in the world as it covers dairy produce from the time it arrives at the factory until 30 days after its arrival in Britain against all risks, which includes Earthquake risks.

Cold Storage in the United Kingdom

In 1927 the Board entered into a contract for improved condition of discharging Dairy Produce and storage of same at London. Not only did this show an annual saving on the previous rates of £40,000 but greatly improved conditions were obtained. A later contract reduced costs by £9OOO per annum and early this year the consolidated rates were re duced from 16s 6d to 15s lid on butter and from 16s to 15s 5d per ton on cheese showing a saving of £SOOO, and negotiations are now proceeding with a view of obtaining further reductions. The Board’s efficient system of discharging boats in London was a strong argument in getting reduced freight when making the last shipping contraot. The total levies paid to the end of the 1932 season is £381,000 while the total saving to the dairy industry duriDg the Board’s existence under the heads of Freight Insurance and Cold Storage are over £2,500,000. From these figures you will see that the Dairy Board has been a wonderful investment for the industry, for not only have all conditions from the Grading Store in N. Z. to the consumer in Britain been improved but the Board has returned the industry over 850 per cent on the levy paid.

Creating Interest in Demand For N.Z. Produce among Consumers This has been done by advertising. The amount spent on advertising to the end of 1932 season was £117,000 and it has been well worth while. Our advertising men in London are alert and progressive and have initiated new and novel ideas, that have been followed by other countries. The aim we are striving for is to get N.Z. butter and cheese into as many houses as possible and it is very pleasing to note the big increase of sales and interest displayed by distributors in the North and the Midlands. Apart from the export work the Board takes a very live interest in the Internal affairs of the industry* They are in close touch with the Department Jof Agriculture and work n harmony with the officials. They are also kept well posted with the work of the Research Institute and, when it is deemed necessary by the Board Prof. Riddett attends our meetings. At the present time the Board is endeavouring to get a reduction in railway freights oti the carriage of butter and cheese to the various grading ports. We are of the opinion that this is one of the best freights the railway has, and that charges should be reduced. Meetings have been held with the Railway Business Agent, Mr Rodie, who has promised to go carefully into the matter. We secured a copy of the charges qq butter and cheese since 1913 and they make rather interesting reading. . Take them for 10*0 rqijes they are as follows : 1913,,14s 6d ; 1915, 15s-lld ; 1917, 17s 6d ; 1920 • onwards, 37s Id. Thus since 1913 there has been a rise of 155 per cent. Your Board has asked that the 1917 rate be re-introduced and this would mean a reduction of about 52 per cent on present charges, but would still be 20 per cent higher than the 1913 rate. Second grade and whey butters are causing some concern and several reports have been received that this buuter has been sold as N.Z. finest butter and one can easily conceive the damage that is likely to be done to our best butters. The Board fs endeavouring to find a solution whereby, this butter will not reaoh the retailer at all. IkohangQ I wish briefly here to refer to the Board’s work in endeavourihg to have the Exchange Regulations lifted. A Conference was called of the Meat, Fruit, and Dairy 1 Boards and the Farmers Union, ; and the National Dairy Acacia-

tion, and a strong deputation from the conference waited upon the Cabinet to have the Order in Council removed. This the Prime Minister said, could not be done as the Government required approximately £1,000,000 a month in London for the next 12 months and as they could not borrow the money, in London, they had to go the and the Banks made it a condition that the whole of the exports had to be put through them, and the Government had agreed to this. A joint Farmers Exchange Committee was formed and no stone was left unturned to bring about the end of these regulations and I am confident that the constant pressure brought to bear upon the Government by publicity and deputations has resulted in the regulations being lifted sooner than would otherwise have been the case.