CONTROL OF LOCAL BUTTER

Hawke's Bay Herald-Tribune, Issue 70, 9 April 1937, Page 5

CONTROL OF LOCAL BUTTER

Licensing System

WHOLESALE SUPPLY No Selling Below Fixed Prices GRADING NECESSARY

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WELLINGTON, Last Night Xxteotirt regulations h#ve been lemjsd to deal with the marketing «f bntftr witjfin tbe Wellington prori^ciAl district which includes Hawki's B»y. They provide that no butter should be sold whple- , *al« by aay iserson unless a liccnse Jg first Obtsiued from the Primary Prpdocts Marketing Department, tvyi the terms on which the license #ball be granted are set out. The Bepartinant h#s power to define mu -witkin which manufacturers «r wholes&le diatributors may sell * butter aad^/t may assign an area to a manufacturer or distributor, Tke refuUfcons come into force on May 1 next. The price at ■wliieh butter in pound Vats ohall be #eld wholesale- is; d.. Iir»t grade creamety "butter .... 13 fiecond grade creauiery butter ... 12| "Wkey butter ...... 12^ Tbe price of bulk butter is one-eighth •f a peuuy less tkan tbe above prices. R# turua tbat must be Buhmitted to ibo Department by manufacturers are deiiued and tke department kas tbe rigkt to inspect the books of tke manufacurer at ul* reasonable times, Tke premises on which butter is kept must be approved as a cool store. Tke Wellington district kas been BOlected as a staxting point for the purpose of acquiriitg practical experience in. controi of tke local butter market •with a view to its ultimate extension with suck modifications as are found

hy experience to be aesirauie tu w tlude tke rrkole of the Dominion. Tke Wellington marketing district Includes tke Waitotara, Waimarino,! Bangitikei counties, and all countfcs I lying to tke south of tkese counties. All butter manufactured in>» manufacturiUg dairy situated witbiu tkej marketing district must, if intendedj for local consuroption, be sold onlyj "within tbat district. Butter manufactured in tbe district may, bowever,| be eold for consumption outside the district, and butter manufactured outside tbe district may similarly be eold for eonsumption witbin tbe district I with tke written permission in eitber I •aee of tke* "department. Manufacturers are forbiddea to sell butter to their suppliers at a price other tkan tke wholesale price preecribed, while manufacturers and wholesale distributors are not permitted tQ effect saies of butter byl of house canvassing or other eimilar means. . Persons who deaire to carry on business as wholesale distributors of butter sritbin tbe marketing district must be licensed so to do by tbe department. Tbe department may in its discretion grant or refueo a licence. An applicant for a lloeace atiBt establisb to tbe satis- 1 faction of tbe department tbat be bas all reasonable facilities for carrying out a regular delivery service to all Tetailers ia tbe area to whicb Tds licence applies of butter of tbe brands and quality for tbe sale by wholesale of wbicb tbe applicant desires a licence. Oue of tke conditions is tbat be shall sell to any retailer who requires not less tban. 241bs. of any brand of butter told by bim. Anotber is tbat be shall not . sxcept in special circumstanecs delivery of supplies by common earriezs. Peoalty For Breacbes.

Wbere it is establisbed to tbe satis* I faction of tbe department tbat a licensee bas committed a breacb of any of tbe conditions of his licence tbe department may revoke the licence witboat prejndice to tbe liability of tbe licensee to tbe penalty imposed by eectioa 26 of tbe Priinary Products Marketing Act. (Section 26 of tbe Act provides on summary conviction I for a bne of £200 in tbe case of an individnal, and for a bne of £1,000 in tbe case of a company or other corpora- - tion.) Tbe department may define areasl witbin whicb manufacturers or wbolesale distributors may sell by wbolesale butter witbin tbe marketing district, assign to any manufacturer or wbolesale distributor any aTea so deined, define and -afcrigo to tbe manufacturer or wbolesale distributor any area witbin wbicb freight may be paid j by the manttfacturer or wbolesale distributor on butter sold for Tetail sale, fix a date upon wbicb any sucb definitions and assignments shall take e&ect and jrive aotice thereof to all manufac-

turens and wbolesale distributors tfiere- 1 - by atfected. "Wbere an area witbin wMeb a manufacturer or wbolesale distributor may pay freight on butter sbld for retail sale is defined and assigned and tbe manufacturer or wbolesale distributor sells butter to auy person outside sucb atea then that person must pay all freight cbarges on tbe butter from tbe uearest convenient place of delivery witbin sucb atea. With respect to tbe sale by wbolesale •f butter tbe department shall fis and . notify in tbe Gasette rates of tbe distribution allowance wbicb may be alloweds I The department is required to ac- 1 ceunt to the xflanufacturer for all but- j ter delivered to it for consumption ta tbe Wellington city area at tbe several wbeienale prices prescribed, less tbe distribution allowances aforesaid. Wkers a manufacturer delivers butter for wbolesale sale tbrougb a wbolesale distributor, tbe latter bCeotnes entitled I td tbe distribution allowance for his scrvicee, but is liable to aocount to tbe mannfaeturer for all loss incurred in ti* sale of suck butter. 1

Witb tbe object of controlling tbe period of credit tbat may be allowed ia tke wkolesale sale of butter, manufacturers and wkolesale distributors are forbidden to allow a period of credit greater tkan tkat which may be fixed by tke department. Tke grading of butter under tke present law is obligatory only Jn^tbe case of butter intended for ex'port, and a elause makes specific provision for the grading of butter intendedt for ^consumption witbin tbe marketing dxstri-t. Sucb butter must be graded in accordance witb tbe law- relating to export butter or by tbe manager of tbe manufacturing dairy in wbick tbe butter is manufactured, The regulations provide that any amount received by a manufacturer, for butter sold for local consumption, in excass of tbe parity value realisable on butter supplied to tbe Crown for export shall be paid to tbe department and all mofifiys representing tbe surplus above parity shall ,be paid into the dairy industry account. Monthly and nn-nnal statements of amdunts of butter manufactured and sold aTe required. Approved Storage. Premises used for tbe storage of butter for consumption in tbe marketing district except tbe premises _ of_ any manufacturer or wbolesale distributor must be approved by tbe department as a cool store for tbe storage of butter and for tbis purpose manufacturers and wbolesale distributors must on the coming into force of tbe regulations render to tbe department a return of all butter stored in premises other tban tbe premises of tbe manufacturer or wbolesale distributor. In tbe event of tbe depaTtment refusingg to approve any premises as ja suitable place for tbe storage of butter, - tbe butter then stored therein shall be sold or disposed of as directed by tbe Minister of Marketing and not otherwise. Two clauses regulate tbe labelling of butter sold for consumption in tbe marketing district. Wrappers or packages containing butter must be stamped or marked with tbe words "pure creamery butter," "wbey butter" or _ "dairy butter' ' as tbe case may require. Tbe branding or marking of wrappers or packages containing butter witb words indicative of bigb quality sucb as "choice," "cboicest," "superfine," "superior," "best factory butter," "best table butter" or "table butter" is probibited.