DAIRY PRODUCE BOARD

Wanganui Chronicle, Volume 75, Issue 41, 18 February 1932, Page 8

DAIRY PRODUCE BOARD

IT’S WORK AND VALUE MR. CORRIGAN AT FORDELL CONSIDERABLE ECONOMIES Activities of the New Zealand Dairy Control Board, the value it represented to the industry in. the Dominion, and the savings it effected in mass handling and the enforcement of grading regulations, formed the subject of an address to about 35 attending a meeting on Tuesday night convened by the Fordell branch of the New Zealand Farmers’ Union by Mr. J. R. Corrigan, Hawera, member of the board. Those present came from Okoia, Wangaehu and Fordell. Mr. E. P. Melville was in the chair, and at the conclusion of his address Mr. Corrigan was accorded a very hearty vote of thanks. Dependence on Dairy Export Trade. “New Zealand relies on the pastoral industry for main exports,” said Mr. Corrigan. ‘-'Thus wool, frozen meat, butter and cheese represent about 93 per cent, of the total exports from the Dominion. “The main feature of export trade within the last 20 years has been the phenomenal increase in the production of dairy produce and the relatively greater increase during those years in butter and cheese exports as compared with wool and frozen meat exports. In 1909 butter and cheese exports equalled 27 per cent, of the value of wool and frozen meat exports. In 1929 butter and cheese exports equalled 76 per cent, of the value of wool and frozen meat exports, the figures being: Wool and frozen meat £26,400,000, butter and cheese £20,185,000. “It seems reasonable to expect that this actual and relative increase in production of dairy produce will continue and it is likely the Dominion will become more and more dependent on the dairying industry. Thus, it is necessary that the dairying organisation be consolidated so that it becomes adequate to the vast interests involved. “The development of suitable farm lands of the Dominion for dairying instead of sheep farming is no disadvantage, since it assists in absorbing the increasing population and increases the gross national income. Much land has become too dear for sheep farming and it can only be handled successfully in small dairy holdings. Dairy Export Increases. “The following export figures are interesting:—Total exports of butterand cheese for the period 1881-1890, 19,000 tons; 1891-1900, 71,000 tons; 1901-1910, 226,000 tons; 1911-1920, 599,000 tons; 1921-1930, 1,350,000 tons. It seems reasonable to expect that for the period 1931-1940 the export will exceed two million tons and the annual export will be up to 200,000 tons. “The Dairy Board acts as the representative body for the whole dairy industry and there is a general agreement regarding the necessity for a board as head <f the industry. Without the board the favourable shipping and insurance contracts which are in existence could not have been made. The election of the board is so arranged that each elected member represents approximately the same amount of but-ter-fat, thus putting the representation on a democratic basis. Shipping Contract Economies. “Even the strongest critics of the Dairy Board admit that it is impossible for a satisfactory freight contract to be made for the carriage of the huge export of butter and cheese without a representative organisation which is able to act and bargain for the a hole industry. Thus the board is justified from the point of view of its shipping activities alone. The shipping of approximately 200,000 tons of dairy produce each year from eleven grading ports is a big undertaking, and if all sections of the industry are to be fairly treated the arrangements must be under one control. To-day, through the Dairy Board, every dairy company, big or small, has the same shipping facilities. It will be realised -that in dealing with the overseas shipping companies, the board, acting for the whole industry, is able to bargain and secure better rates than would be possible in any other circumstances. The reduction in freights secured and the improvement in shipping conditions are ample proof of this. “Previously it was not possible to appoint shipping inspectors, and it is known that considerable loss took place as a result of this lack of supervision. Now, under the board’s inspection system it is admitted that New Zealand produce is transported and handled under better conditions than ever before. Marine Insurance. “The remarks made in regard to shipping apply equally to marine insurance. Because the Dairy Board had full jurisdiction over the whole of the industry, it was sblc to bargain for bed-rock rates and better insurance conditions than had obtained previously. The board’s policy covers loss from every possible cause, and the rates secured are so low that the reduction represents a saving much greater than the ordinary expenses of the board. In other words, the board costs the industry nothing when 'this saving is considered. The underwriters with whom the board is dealing have never refused to pay any claim which has been put forward. “It is not represented by advocates of the board that if the board had not been in existence no reductions whatever in shipping and insurance rates would have been made, but those competent to judge are in agreement that the actual reductions secured are considerably in excess of the outside possibility without the board being in existence. Improved Handling and Storage. “Prior to the setting up of the Dairy Board, complaints in regard to the conditions of handling and storage of dairy produce in Great Britain were frequent. Since the advent of the board handling has been carried out under cold storage conditions and at a lower rate than ever existed before for similar conditions. “The provision of scientific assistance and facilities for research in connection with dairying problems can only be made by an organisation acting for the whole dairy industry. The board, acting for the industry, has

been able to assist in promoting research and scientific assistance at the Massey Agricultural College and elsewhere in the Dominion. London Representative. “There is now in London a representative and an organisation repre- I seating the industry. This establish- 1 ment was not possible prior to the in- ' ception of the board. Board members . are well aware of the good work of the London manager who is untiring in ' his efforts to keep the attention focussed on New Zealand dairy produce. Examples in this connection arc the recent Lord Mayor’s reception to ! the “Butter Fleet” and again the “New Zealand Cheese” and the official good-bye to the steamer Corinthic. “The board’s London office is able to watch any movements which might bo detrimental to the interest of the New Zealand producers. Further the Lon- ] don manager can discuss matters with the London merchants direct, and the recent tariff preference for Dominion dairy produce has been assisted by the representations of the London office of ( the boqrd made direct to the Home authorities as well as through the Tooley Street merchants. Board as Head of Industry. “There is now general recognition of the necessity of a board as head of the dairy industry charged with the responsibility for furthering the interests of the industry in the many ways which have been referred to. Some of those prominently connected with the dairy industry, who at one time were strong critics of the board, are now its keenest supporters in the conduct of the policy which I have attempted to outline. “A discussion on the failure of the board’s attempt at marketing of dairy produce would be profitless, but without the board interfering in the matter of marketing of dairy produce would be profitless, but without the board interfering in the matter of selling or price fixing there is much that could be for the benefit of tho industry in a general way in the promotion of better marketing of New Zealand produce. The board proved that the export and marketing business could bo handled without local agents, and who will say that before long there will not be a movement along these lines? Savings Effected. “The following is a statement of the savings effected by the Dairy Board since its inception in 1924. As already stated it is not claimed that without the board no savings would have been made, but it is claimed that the possible savings without the board would have been insignificant compared with the figures quoted. In freights they were: 1924-1926, an annual saving of £130,000 over 1923 rates; 1926-1929, £116,000 over 1924-26 rates; 1929-1930, £74,000 over 1926-29 rates; 1930-1932', £35,000 over 1929-30 rates; a total annual saving as compared with 1923 of £355,000; making a grand saving over the whole period of approximately one and ahalf million pounds sterling. “On the inception of the board a contract was placed for marine insurance at rates which showed an annua] saving over 1923-24 of £47,000 per annum. The rates in subsequent contracts have been steadily reduced, and in the latest contract for 1929-32 a further reduction of £5OOO per annum was obtained, making a total saving over the period of £460,000. It is important to note that the latest reduction was obtained when insurance premiums for other produce, notably frozen meat, were rising. One condition of the reduction being granted was that the board’s system of cargo inspection be continued. Cold Storage. ••A cold storage contract also including the more efficient handling at London of New Zealand better and cheese was entered into in 1927. The rates obtained showed a reduction on the rates then ruling of £40,000 per annum. During 1930 tho contract was renewed with a further saving of £9OOO per annum. “Under the conditions of the board’s contract a further reduction of per cent, is now I; kely, due to wages being reduced. The total savings under tho cold storage contract may be set down conservatively at £136,000. The efficient discharge conditions arranged under the contract were also a factor in obtaining the latest freight reductions. “Taking freights, marine insurance and cold storage in the United Kingdom the total savings obtained under these heads can be set down at approximity two million pounds sterling. While the direct monetary gains can be measured it is impossible to measure the benefits obtained due to tho careful handling of the produce during shipment and while in storage in the United Kingdom. Conferences of the Board. “The sub-committee appointed to discuss plans for the holding of an annual conference on the part of the dairy industry in association with the board reported that it recommended a conference should be held, preferably about the third week in October. As a preliminary to that conference, ward conferences should be held, presided over by the board member for each ward, and these conferences should be entirely open for as many dairy company directors or suppliers to attend as desired. The voting for delegates to the central conference from these conferences should be on the same basis as that for the election of tho board members, thus, one vote for every 20 tons of butter or part thereof up to 500 tons, and one vote for every 30 tons or part thereof over 500 tons (two tons of cheese counting as one ton of butter). Five delegates should be elected from each ward conference to attend the central conference to be held in Wellington. “The ward conferences are to be held sufficiently late in September to allow of the circulation of the board’s annual report and balance-sheet prior to the first of these conferences being held. The central conference is to be held about the third week in October, the board paying the expenses of the delegates elected at the ward conferences to attend the central conference, but not paying any expenses in connection with ward conferences other than those of the board members representing that ward.”