DAIRYING ADMINISTRATION

Hawera Star, Volume LIII, 13 June 1933, Page 6

DAIRYING ADMINISTRATION

PROBLEMS FACING THE INDUSTRY

PLEA FOR GREATER CO-ORDINATION

Cambridge Suggestion for Conference

Address to Taranaki Federation

That the dairying industry m New Zealand would eto be completely reorganised before it could attain that high state of efficiency which had its reward in other countries, Denmark, for instance, was the opinion expressed with.strong conviction by Mr F. H. Anderson (Cambridge) m an address to the executive of the Federation of Taranaki Co-operative Dairy Companics in Stratford last .evening on the subject of a remit which is to be submitted at the forthcoming annual conference of the National Dairy Association. Mr. T. A. Winks (Aral at a), cha man of the federation, presided, and the speaker was accorded an attentive hearing. Several questions were asked, and finally Mr. Anderson was accorded a vote of thanks, the executive self expressing no opinion of the remit, but undertaking to refer it to the directorates of federated companies for the purpose of instructing individual delegates to the eonfeience.

PROPOSALS OUTLINED

In welcoming Mr Anderson to the meeting the chairman said that Mr Anderson had propounded a scheme in which there was a good deal of merit, and it was fair and reasonable that he should have the opportunity of explaining his views in Taranaki as lie had done in the South Island and other districts in the North Island. The outlying facts- of the . scheme originated in the “Mangatoki remit, of which- Mr Anderson had been an enthusiastic supporter.

POLITICAL ASPECTS REVIEWED

After discussing briefly tbe method of electing the Dairy Board and remarking that this was no time to open up a controversy- on the subject. Mr Anderson voiced the opinion that the board should -he “left alone” and be given the power to build up the industry’s internal organisation. It was quite evident, he said, that our own weak system - of organisation was- the reason for ou-r downfall. In other countries, particularly Denmark, the industry was organised on most up-to-date lines. Drastic regulation® had ibe-en passed' as regards the quality of milk supplied, and those were enforced by strong police and veterinarian inspection. In Great Britain, where .there was a big agrarian movement on foot, the dairying and allied industries being reorganised on progressive lines. He contended that so far as the quota system was concerned we were treading on difficult ground. . If the Dominion was to avoid the restriction of her imports- _ she would have to build up the goodwill of buyers at Home. Everyone knew that our produce was at fault. 'Government regulations were passed and for the last decade the industry had brought forward remits at its conferences for self-government, but got nowhere. The weakness in the lax system of applying regulations was the industry’s main difficulty. “When we look round and see the rationalisation that is going on in other industries and the coordination of individual effort it is high time we did the same,” said Mr Anderson. “There are plenty of controlling authorities, hut it is the coordination that we need.”

divided control.

. The farm dairy instruction of the Dairy Division was one of the most complicated systems in New Zealand, and although it had been in operation for some 16 years there were only 12,(XX) of the 60,000' farms which derived any benefit. It was not good enough. In the company of which he was chairman of directors they had trained their farm dairy instructor to work from the stage w r here bacteriological samples of milk were taken for examination. Many of the company’s problems had been solved through the microscope. If the cost of farm dairy instruction was to double itself on the morrow his company would continue to siipport it. A greater measure of scientific instruction was wanted throughout the whole- of the industry, for when the new dairy regulations were enforced manv companies would be placed in an invidious position.

INADEQUATE FINANCE.

He mentioned that the Department of Scientific and Industrial Research received a grant of £14,000, which, in his opinion, should 'be increased to £IOO,OOO for such a young country as this. The department made £3500 available for dairy research and this was supplemented' by £3BOO from the Dairy Board. He criticised the inadequate -system of financing the work of Massey College, and said that research there should be made a whole time job. The speaker referred to the Factory Managers’ Association and its part in the industry. Nothing had been, done, he said, to give it status- so that the various regulations could b© enforced. The industry must take up the matter of securing for the managers- a definite standing and security, for it w-a-s absolutely unfair to expect them to tighten up the regulations which -might lay them open to disfavour among unscrupulous suppliei-s' and possible dis-| missal. The proposed Factory Managers’ Registration Board and the work of farm dairy instruction should be carried out under the Dairy Board. In dealing with the question of milk grading, Mr Anderson mentioned that he had proved its worth to the entire satisfaction of his -suppliers. He considered that it was no use enforcing the Government regulations unless suppliers could he assisted by scientific knowledge to improve the quality of their raw material. The amount -set aside at present for farm dairy instruction was almost insignificant in view of the vast field to he covered. A largely increased grant should he made, available and instruction instituted on the block system throuehout h«ow Zealand. The industry already had two laboratories—one at Wallacevi.lle and the other at Hawera—with the Dairy Research Institute at Massey College, hut until' there was TOO per cent co-ordination between the three the industry could not expect to get anywhere.

These were but a few of the political aspects of the industry as it existed to-day. said Mr Anderson. He claimed that the industry must he reorganised in order that' the highest ‘ state of efficiency could he reached. "Personallv. he had no “axe to grind.” They could see that other countries were nutting their houses in order and they knew how far they lagged behind their competitors.

Mr Anderson at this stage proceeded to deal with each of the following clauses of the remit to be moved by the Cambridge Co-operative Dairy Company at the Hamilton conference next week: y

That it is approved that co-ordination of the efforts of certain units or the industry for the betterment of its internal affairs is essential. _ That the various district daily associations, district and central employers’ associations, and the factory managers’ associations should coordinate their efforts under the Dairy Produce Board. That -for the purpose of co-ordinating research work the Dairy Research Management Committee he incorporated, with .main representation from the Daily Produce Board, and that all daily research ana district laboratory service work with the exception of the veterinary section of the Wallaceville Laboratory come under the supervision of the committee. _ Thai the Government appropriations in respect of the Dairy Research Institute and the above . laboratories be paid to the Dairy Research Management Oommiteee (Inc.) for their administration and accounting of the Research Department and Dairy Produce Board. . . , ~ That a factory managers’ registration board be set up and incorporated under the Dairy Produce Board. That the technical inspectors of proclnce overseas be directly respoiisiible to the Daily Board with the view to co-ordinating the work of the board with the trade’s requirements-. That farm dairy instruction come under the control of the Dairy Produce Board, also the Government aoropriations for its administration and accounting to the Government, the instructors "to retain the powers under the Dairy Industry Act.

With a series of charts Mr. Anderson showed how control of the dairy industry was divided between the Minister of Agriculture and his officers and the Dairy Board. In research there was again division of control and work, part of it being performed an Wallaceville laboratory, under the Department of Agriculture, and parr at the Dairy Research Institute at Massey College, responsible to the Department of Scientific and Industrial Research. By closer association the laboratories would benefit by the information the farm instructors could supply, and the same would apply to the work of the instructors in butter and cheese making. It was his opinion that the Dairy Board should have the largest representation on the board controlling dairy research. * So far as finance was concerned, Mr. Anderson considered the appropriations inadequate for the work that required to be done and he was of the opinion that the same system of direct accounting in vogue in Denmark should be introduced. At present all appropriations were made through the Public Service Commissioner —an unwieldy process -of administration. The whole of the Danish industry was selfgoverned. In New Zealand the system j was far too complicated and was entirely devoid of co-ordination. . ' In the matter of general control Mr. Anderson said the district association of dairy factories should be broadened to be representative of all the district dairy, factories and employers’ association, and its decisions should be sent forward to the Dairy Board, a body elected by the industry which should he in complete control of the industry. The present method of seeking improvements in the control of the industry through political clian nets was not of the best; they should be sought throught the board, "which should have the necessary powers.

REGISTRATION OF MANAGERS

Dealing next with the proposed Factory Managers’ Registration Board, Mr. Anderson mentioned that the Minister of Agriculture had stated that* he would never allow the board to come under the wing of the Dairy Board, and that if it was given any status it would be under that of the Dairy Division. It should he the Dairy Board that should have the right of issuing certificates of competency to factory managers REPORTS ON QUALITY.

Tho Dairy Board’s duties should include such matters as shipping, advertising and the inspection of produce in Great Britain. At present this inspection was done by officers of the Department ,of Agriculture, who reported to the Dairy Division. This did not make for efficiency. Some people said that the reports with inspect to New Zealand cheese had been exaggerated by Too ley Street interests, but he did not believe that was true. He was satisfied that a great deal ol bad cheese had been sent Home and that the Dairy Board was aware of the facts. "Was the industry in possession of the facts? lie asked. He I said definitely that it was not. As j

HERCULEAN TASK.

factory directors they had to rely on reports from agents overseas. These men had to compete for the marketing of the produce and thorough reports could not be expected. The Dairy Division’s reports were the property of the factories concerned and the division. They should be the property of the Dairy Board. Some factories in despair had asked for analysts’ reports and some had been staggered on re. ceiving them. The question of had quality produce had engendered a feeling of suspicion between North and South, between Waikato and Taranaki even, and that would go on so long as the reports were not made the property of the industry, so that the offending units could be brought up to the mark.

Some sections of the industry wanted the Dairy Boai*d and some wanted to squash it. When they reached that state the time had arrived for tlio submission of something concrete upon which they could build up.

“ROTTEN POSITION IN THE INDUSTRY.”

Referring to the suspicion engendered between North and South, Air. Anderson said there were people in the North who rejoiced when the South grading figures dropped. That was a rotten position for the industry to be in when one section openly welcomed a deterioration of the grade of another’s exports. In reply to Mr A. B. Muggeridge (Alton) the speaker said that the grading generally was a decent index of quality. To Mr. J. R. Corrigan (Hawera): The Analytical reports from Home generally confirmed the grading here. There appeared to be little difference either one way or the other. When these analysts’ reports were procurable for the asking it was one argument in favour of the publication of the grading reports at present being received by the Dairy Division. Discussing the Dairy Research Management Committee, the speaker said that the recent report by Dr. E. Marsden, secretary of the Department of Scientific and Industrial Research, had proved acceptable to the industry, yet nobody seemed anxious to take the advice offered. Air. Anderson went on to deal with his own suggestions for the reorganisation of the industry. In the course of his remarks he -stated that New Zealand had lost £1,000,000 last year on its cheese. Many had swung to white cheese -and had brought down the price. The butter always fell with tlie cheese price level, but the industry would never be able to tackle its marketing problem until it had tackled its internal inefficiency. ■?

All*. Corrigan said that when he was a member of the Dairy Board lie and others hammered the department for some statutory power for the more effective administration of the industry. ' ■ Air. Anderson: It is my belief that the Government has used the dairying industry simply as a political catspaw. * The chairman: Tlje Government has 1 iever laid it down that it wanted control of the industry. While the in iu,stry itself was at sixes and sevens it adopted a “hang-on-until-you’ve-aiade-up-your-mind” attitude.

FARM DAIRY INSTRUCTION

Although he said he realised that it .yas a controversial subject Air. Mug, gericlge raised the question of farm dairy instruction and asked why the industry should be called upon to beai the extra burden of expenditure for a block scheme when the laboratories especially that at Hawera, were doing such good work. All*. Corrigan : Farm dairy instruction on the scale suggested will solve our problems if the problems are what the scientists say they are. The scientists would have tlje instructors undei their supervision. . All*. Anderson: And the laboratories should be the centre from which they should work. Mr. Corrigan voiced the opinion that New Zealand’s produce was as good today as ever it was. The greatest harm had resulted from Press reports of theadver.se statements of producers themselves.

A delegate: That is the best argument put forward to-night for more co-ordination and loss hot air. The speaker said that lie supported Mr Anderson’s scheme hut saw one difficulty' and that was the matter of voting." Under the present system it would place the voting power in the hands oi one large concern in the Waikato. The company lie represented upheld the one man-one-vote principle. Mr. Anderson said that every alternative method of election that had been put forward during the last few years had antagonised some section of the industry, therefore we had come to the conclusion that it would be better to leave the constitution of the Dairy Board as it was at- present and concentrate upon co-ordination < of all the other units leading up to the board. The reconstitution of the board was something that could come later. In reply to a further question Mr. Anderson said that Dr. Marsden was “behind the remit 100 per cent.” Mr. Winks said he agreed that there was a great need for co-ordination and he believed that the remit was working along the right lines. Mr. Anderson was to be commended on his great effort in that connection.

Mr. Muggeridge: All the same, lie has a Herculean task especially in view of the adverse vote which the remit received at tlje South Island conference.

Mr. Anderson denied that it was an adverse vote and explained that the issues had been clouded by the last minute substitution of Iris remit for another remit, on the order paper. His remit had been carried on the voices, but was lost on a tonnage vote, largely because many delegates felt that they could not vote on a motion which had not been previously considered by their companies. The discussion concluded with a \ etc of thanks to the speaker. The executive deemed it inadvisable to express any opinion with reference to the remit hut undertook that it should be referred to federated companies in time for discussion and the instruction of delegates to the N.D.A. Conference.