OUSTING MIDDLEMEN

Dominion, Volume 15, Issue 14, 11 October 1921, Page 6

OUSTING MIDDLEMEN

FARMERS’ BIG CO-OPERATIVE SCHEME MARKETING, BANKING & SHIPPING PRODUCERS DISCUSS PROJECT Far-reaching proposals of importance to producers were outlined at yesterday’s meeting of the Dominion Executive qf the New Zealand Farmers' Union, in the shape of a scheme for the cooperative handling and marketing of produce, and for the establishment of a co-operative line of State-subsidised producers’ ships. The proposition was tabled by the Dominion president (Air. AV. J. Polson), who said it was the outcome of resolutions passed at union conferences during tho past ten years. Air. Polson I said that the producers were seeking to eliminate the middleman and to substitute the honest system of selling on consignment. Co-operative banking was also required. Everything included in the*programme he had outlined had already- been adopted in older countries he referred particularly- to Germany- and Denmarkv'with the exception possibly of ths proposals with regard to shipping. EXAMPLES FROM OVERSEAS. In indicating some of the benefits to be derived' from’ a comprehensive scheme of co-operation, Air. Bolson cited the case of tho fruitgrowers of California. There the movement was started thirteen years ago by the raisin-growers. Their prices had dropped below the cost of production, -but they saved themselves from disaster by cuttingS’ont the middleman and marketing their produce on a co-operative basis. The producers raised the price of raisins from 5 cents to 10 cents per lb., and to-day the price was 15 cents. Despite these increases tho consumers were not paying extra for the fruit, as the producer was simply getting the benefit of the “rakeoff” which formerly went into the pockets of the middleman. Incidentally, production had been very largely increased. Denmark, wtth its blealt climate and poor soil, had by virtue of co-operation been converted info the richest and most prosperous country m the wprldj. The system which the Zealand producers were being asked to adopt was a legitimate development in an ideal directions; the producer, to get af* ■he was entitled to in the industry, so that no middlemen or speculators could intervene to rob him of anything which was his. The State should-assist in the development of tho co-operative movement among producers the same as had been done in Germany and Denmark and other countries. At the same time Air. Polson said that in order for tho movement to succeed in New Zealand it would be necessary to break down a certain amount of class feeling that existed between town and country. The adoption of the co-operative scheme of marketing would put the producers in a. very- much better position regarding freezing companies. r KEEPING A STIFF BACK. With regard to shipping, the union was backing the Producers’ Committee scheme which had recently- been published. They- must have legislation in order to fight the monopoly. There was going to be a very serious fight over the shipping question. “As a matter of fact,” continued Air. Polson, “no one doubts that shipping is being run at a loss at tho present time, but there must be some means of dealing with such crises as have arisen during the lest ten ycors, when wo have been bled through the nose. AVo have paid for the complete line of ships which take our produce away- time and again. this: that we must keep a stiff back over this shipping question; that we must 'back the Producers’ Committee up; and we must see that the Government keeps a stiff back. AVo leave the Government to deal with tho scheme that, the Producers’ Committee has evolved. Adverting to the marketing scheme, Air. Polson said that it aimed at selling through the depots direct io tho retailers, as was done very successfully- by the Bristol Dominions Association before the commandeer.

AGRARIAN BANKS, Coming to the banking project he referred to the success achieved by the German system of agrarian banks. The promoters of tho movement did not say that the German system should be adopted in Now Zealand, but they did think that an agrarian banking system should lie instituted here. Our banking system had undoubtedly proved unequal to the strain of tho past few- years and it had inflicted hardships on the producers which had not been inflicted in other countries having 'better banking systems than Now Zealand possessed. Legislation should be brought down at an early date in order to enable the producers fo get their scheme under way. If they had a co-operative banking institution; they would have the finance to hold their wool until they could realise better values for it. It was the duty of tho Government to assist the producers in getting the co-operative handling and marketing system, and if possible a shipping and financial institution attached to it. SOMEBODY’S “RAKE-OFF.” In illustration of the loss that the producers were incurring, Air. Polson remarked : “Our mutton to-day is selling at an average price of 6d. per wholesale, all round. The English retail price is somewhere about Is. 6d. Durjng the war, when the butcher v regulated, he was getting a profit o. »”• per lb. by schedule. To-day he c . ins that he is not doing so well bee. - lie js getting only 2d. ’lf he is getf',-- only 2d. and wo ourselves only 6d 'ion somebody else is getting lOd. per ib. SomcW.y is -getting an enormous rake-off. A good deal of our meat is fetching a much higher price than Is. 6d. Then in regard to butter, . you saw what Lord Northcliffe said in Auckland, that we had the finest butter in the world, and he wondered why it was unknown. The simple reason is that until recently the whole of it went to Tooley Street, where it was blended and sold as the best Devonshire, and such like.” i The president continued that recently some of the New Zealand dairy factories had made ararngements with the Co-op-erative AA’liolrsnle Society of England for handling their butter. This was certainly a more satisfactory arrangement than consigning io Tooley Street, but its weakness lay in the fact that th° C.AV.S. were out to buy in the cheapest market, and, further, did not reach the higher class of customer. Under the pronosed scheme butter would be sold to English grocers direct through depots, as obtained under the Bristol Dominions Association. Concluding. Air. Polson said flint there was no reason why they should not get to work on the co-opera-tive handling and marketing service nt once, if tlry could onlv get the farmers in the Dominion solid. RESOLUTIONS CARRIED. Mr. R. D. Duxfield (Horotiu)’ said he saw difficulties with regard to the shipping project, and he did not favour :ui\'.hing in tho nature of State control. Mr. Polson, in reply, said that all that Mr. Mnssey had asked was that tho State should have that representation it had on tho Bank of New Zealand. If only thej- had an Imperial Shipping Board, such as Mr. Massey had suggest-

e<j. many of the difficulties associated with the shipping question. would disappear. It was a very line idea, but it required a tremendous amount of 01ganisation, and it would be years before it could bo put into operation. A tribute was paid by various delegates to tho organising work done by Air. Polson, the vice-president:. Captain F. B. Colbeck. and the secretary. Air. e' C. Jack, on their tour of the South Island, a motion was carried expressing hearty appreciation nf their services. After discussion regarding (ho details of tho scheme, the following resolution was passed'on the motion of Air. E. Bowman (Gore): — That this executive heartily supports tho Producers’ Committee’s proposals for the establishment ol n joint-owned producers and Government line of shipping, and urge tho committee to see that when details are being arranged that producing interests have tho major representation on the board of control. Tho executive also decided to wait on members of Parliament to-morrow nnd solicit support towards the genera) scheme outlined by Afr. Poison. Later Mr. F. R. Btishell, general manager of the Farmers’ Co-operntivo Wholesale Federation (N.Z.) Ltd., addressed the conference relative to flic marketing scheme already established : n England by the federation for the marketing of New Zealand produce, and nt tlie conclusion of his address tho following resolution was unanimously carried:— That the marketing scheme of the federation receive the sympathy and support of the New Zealand Farmers' Union. '