DAIRY PRODUCERS

Dominion, Volume 14, Issue 229, 22 June 1921, Page 10

DAIRY PRODUCERS

ANNUAL MEETING OF NATIONAL ASSOCIATION

IMPORTANT SUBJECTS DISCUSSED

QUESTION OF SHIPPING

By Telegraph—Special Benorter. Palmerston North, June 21

The twenty-seventh annual meeting of tho National Dairy Association of NewZealand was held in the Manawatu A. nnd P. Association’s wans to-day. Mr. A. Alorton (the president) was in the chair, and there was an attendance of over 200 delegates. Speech by President,

In moving the adoption of the report and balance-sheet, the president, said that they were meeting under very different conditions than .previously, in that they had an open market for their produce 'and were free to make tho best iirrangement.s for its disposal at tho best prices’ offering. He had no doubt that present-day directors would te able to accommodate themselves to this position with the skill of their predecessors. Climatic conditions had mi.litated very largely during the past months against any increase in the dairy output, and in many cases there had been a decrease. Fortunately, these conditions had not teen universal, and notably in tho northern part of the Auckland district they had had a very fine season. He forecasted that there would soon te increased production in dairying on account of the number of farmers who were taking up this industry. , ■ During the l-a-’t season they had. made a contract with the Imperial Supplies Department for the sale of their buttei, fortunately at a good price. As a result of the price secured for butter and the fall in cheese prices, a number of factories had changed from cheese-making to butter, «o that, its production had been unusually high, and placed butter m the forefront of these two primary products of the Dominion.

No Assurance of Stable Market

There were also, in connection with the fall in the values of cheese, some other matters deserving attention. Last year he had suggested that owing to the fall iu meat values cheese paices would te affected and this hadcome to miss There was a connection between the two lines that could not te explained in any other way. The purchasing power of their overseas customers had droppec al«o and without doubt the prices of ?heir products would te affected by the conditions, social and economic, m BnX. Ttey could look tor no assurance that thev would have a stable market for some'time to come. There had also been a considerable fall in the Z, of the industry, to such an extent that their continuance had been a matter for grave consideration. This was, he telieved, only temporary,.hut there .was bound to be great uncertainty in the mind of .the daily farmer regarding the making Lf butter, cheese, and their byproducts. Shipping and Storage.

Delav in connection with shipping had resulted, in some cases in an miproywent ill the quality of cheese, but in many instances, on account, of produce being stored in unsuitable ’ buildings, eonrignmeuts had not only deteriorated to quality but there had also been a shrinkage in weight. He hoped that, a. n result of the improved shipping and storage conditions, they would h"™ “ belter article to ship next season. Every attempt had teen made to maintain an improve the standard of <mve a recent, statement that there had been a falling off in quality an emphatic denial. Tn the circumstances it was a credit to them that they' 1a 1 been able to maintain the high standard attained in previous years. A ith regard to the local butter market, they had bad some trouble, but they had now made arrangements whereby the butter producer could got the full export value of his butter on the local market. . • Financial Difficulties.

During'- the past year the financial position had gone from bad to worse. He referred to the attitude of various banks in refusing advances to dairy companies and said that tho conditions imposed by the banking institutions wore very severe. They found that right throughout the Dominion there was financial stringency that made it exceedingly difficult for them to their businesses as they had been m the habit of doing. Its effect hod been that primary products had fallen almost to the pre-war values. In connection with their export trade, it would have been good, business if dairy companies had arranged at the beginning of the season for the disposal of their surplus goods.

Burden of Freights.

The president referred to freights, which he said had become a very severo burden on tho exporting producer. He hoped 'that the meat and dairy companies would make contracts with shipping companies that would become cofjorminous, so tlutt ]x>th branches of the primary industry would be able to give mutual assistance in the matter of securing better shipping arrangements in future. At the previous annual meeting a resolution was carried supporting the principle of a. farmers’ line of steamers. Since then numerous conferences of producers had lieen held, and the Government had said thaTYrtaoutd give such a scheme every assistance. Within a few months definite steps would be taken to put the scheme on a sound and proper ■basis with, good results for all concerned. (Hear, hear.) The Government had withdrawn 1 lie concession exempting dairy companies from income tax owing to the difficult financial position. To those companies whose finance was not exceedingly good this taxation would prove very irksomeIt was an unfortunate move, as there was never greater need to stabilise the financial position of the dairy companies than at tho present time. ’lncreases in freights by rail imposed during the past twelve months had mere than doubled the pre-war rates.

The Outlook. Turning to the future, Air, Morton said that there were circumstances in connection with both butter and cheeso that made it almost impossible to forecast which would b<> the better proposition during ,next season. If cheese 'became a less payable proposition, all cheese factories would turn to butter, wilffi tlui Teßult that competition in butter would be keener than ever. The erection of a tariff wall by the UniiiyJ States of America, against Canadian cheese would have the effect of putting that commodity in serious competition with the New Zealand article in Great Britain. However, it might be that Canada would turn to the production of butler. He hoped that before the opening of the new season there would be some clearer indication of which product would bo the better paying commodity. Tho bulk of the cheese factories were able by their dual plants to turn at will to the production of either butter or choose. Their position on the English market was a very different one from that prevailing ten years'ago. Then tho amount of New Zealand produce was eo small that it did not affect the market, but in the near future ho believed that tho New Zeakuid output would have a determining effect on the English market. It was therefore necessary io increase their individual production as much a? possib.'e by the greater uso of manures, by tho employment cf the best methods of farming, and by studying the best testing methods for their cows.

With increased production would come a tetter financial position, not only for the individual, but tor the companies also. A 7 ery little had teen done in the direction of advertising our products at Homo, and he intended later to ask Mr. Brash (secretary of Die association) to explain this matter to them. A good advertising campaign should 'be carried out. The South Island, which had already taken the matter up, was anxious for the co-operation of the North Island in this direction. The balancesheet did not show such a good position as the previous one did, but notwithstanding that the association was in a strong position and' able to stand up against any" financial troubles with which it was likely to te faced. Various Points Discussed.

Mr. Brown (Maketawa) seconded the motion. Mr. Corrigan (H'awera) raised questions relative to rebates from shipping companies. The chairman agreed that the association should not have handled these rebates. On account ofl the financial depression most of the credits had been set against the liabilities of the companies to the association. lhey T should have teen paid in cash, and it was hoped to pay cash in future. Referring to the question of shipping, Mr. Marx (Mangatoki) said that the dairy producers had probably lost last year a million pounds through not being able to get their stuff away, and through depreciation. AA’hat they were losing in this way would have found the price of tw-o big liners. Resolutions alone would not remedy matters; they would have to follow these up with action. Joint action with regard to .the financing of dairy produce during the next few months was also essential. A certain, amount would have to bo found in advance for! payment to suppliers. Mr. Maurice Nathan (Joseph Nathan and Co.), in referring to the suggested establishment of a shipping line, asked the chairman whether the association had thought about arranging retura. freights from England. Return freights were essential. AVould it not be well if the association consulted with the Exporters’ Committee and get that body to assist it in arranging freight contracts, or arranging a new line of steamers, which he thought was an excellent idea ? The chairman said that a separate committee had teen set up, representing the whole of the producers of the Dominion, and it had dealt with the matters raised by Mr. Nathan. It was a difficult thing to arrange to bring the importers into the scheme. The moment the importer was brought into it and they attempted to levy on him some form of contribution, lie passed it on to the community. “I hope,” he adde<l, "that we will find some way of bringing the importer into it without imposing any tax which will bo reflected on tho community.” Atr. J. S. Connett (New Plymouth) said that directors of many companies had had to fight their suppliers, when endeavouring to build up reserve funds. The. principle 'of taxing reserve.? was quite a wrong one. Every company should be encouraged by the Government to set aside reserves. Instead: of this, however, the Government had taxed Abe reserves. Other speakers criticised the National Dairy Association for not having taken active steps to oppose taxation of dairy companies when it was first mooted

The chairman said that no taxation was acceptable to the whole of the community. It was simply a question of the greatest good for the greatest number, end he did not think the taxation was goins; to hit tho dairy companies very hard. After further discussion the report and balance-sheet were adopted.

The Directorate.

The secretary reported that the' following had been elected to fill three vacancies on the directorate:—Messrs. J. B. Brechin (representing AVellington), T. Bassett (Auckland), A. Morton (Taranaki). Special mention was made by the chairman nnd others of the services of Air. AV. Fisher (Carterton) a retiring director, who was accorded a vote of thanks.

Air. J. B. Murdock, of Hawera, was by motion of the South Taranaki delegates present, recommended to the executive for appointment to the directorate to fill the vacancy caused by the death of Mr. AV. D. Powdrell.

Proposed Reconstruction,

Some discussion took placo when Air. Al'Farlane moved on behalf of the Riverbank Co-operative Dairy Company :- "That the association bo reconstructed and formed into a limited liability company with a capital divided into 250,000 shares of -£1 each, shares to be computed on the basis of one share for each ton of cheese, and two shares for each ton of butter manufactured.” In reply to Mr. Sinclair (Opotiki) the chairman said that the executive had no recommendation to,make on the subject. There was a great deal to bo eaid in favour of both sides of tho case. Personally, he questioned whether the proposal would be for tho ultimate benefit of the induetrv, and it was tho industry that they 'had to consider. The lion. J. B. Gow urged that. m view of the present state of the Dominion’s finance it would bo unwise to disturb Tim constitution of .the association. The motion should be deferred for consideration nt the next annual meeting. Ho moved: “That the executive bo asked- to report on the proposition a year hence.” . .. In opposition io tho proposal it was pointed out that, its adoption would result in the association losing its identity. and that in any case a lar Kf, n . un ?’ her of companies would not fall into line with the new organisation. The motion was rejected in favour ot the amendment, which was adopted by an overwhelming majority. T motion was carried increasing the number bf directors from nine to ten, thus allowing for separate representation of Hawke’s Bay. The conference will bo resumed tomorrow. ____________