FARM PRODUCE

Hawke's Bay Herald-Tribune, Issue 105, 20 May 1937, Page 4

FARM PRODUCE

Marketing System for Hawke's Bay FACTORY TO SHOP Butter, Cheese, Bacon and Small Goods NEW CO-OPERATIVE CO. The wholesale marketing- of all butter, cheese, pork, bacon, and small products of dairy farms in the province of Hawke's Bay will after Jtily 1 be in the hands of a new co-operative company which will comprise all the dairy companies at present operating in the province. This development will consolidate the various manufacturing- companies in one organisatioti, providing an essential service to the retail trade, and eliminate the necessity for the operations of the Internal Marketing- Department and individual distributors in the territory. New premises for the company are to be erected in Hastings near the Heretaunga Dairy Factory. Th« formation of the new co-opera-tive oocnpany to undertake the marketing of dairy produce in. this territory is the outcome of the successful finalising of negotiations between the Government, the Director of Internal Marketing, and the co-operative dairy companies situated in Hawke's Bay, said Mr. D. G. Begley, chairman of the Heretaunga Dairy Company, in an interview with the Herald-Tribune today. It meant, he said, the introduction of efficient and economic distribution of farm produce. As a result of these negotiations a co-operative company has been formed and registered under the nacne of "The Hawke's Bay Co-operative Farm Products Ltd." This company will provide the necessary servicing equipment and organisation required tc maintain regular deliveries of all classes of farm produce to the retail trade throughout the whole of the Hawke's Bay provincial district. The company will work in cohjunction with and in accordance with the wishes of the Marketing Denartment.

Continuing Mr. Begley said, "Within the next few days & cOntract , would be signed for the erection of up-to-date premises in Plunket Stpeet, Hastings, to be the haadquarters of the new company; and the change over to the new conditions, it is hoped, will take place on July 1, if the necessary buildings operations are completed before that date. "The agreesnent concluded with the Government providing that the company in its constitution must be absolutely and truly co-operar tive; and provision is made in the Articles of Association that only co-operative organisations can become shareholders. "This development," said Mr. Begley, "can in no way be considered a monopoly; but is the result ^ of a unanimous desire of all particxpating dairy companies to distribute and maintain the business control and handlmg of their products to the benefit of producer and consutner. When it w realised that the Government 's ready approval involved the closing down of its own branch of the Internal Marketing Depaitment in Hastings, there can be no question regarding the sincerity of purpose and sound principles upon which the Ministor and Director of Marketing are determined to de'al with this aspecfc of the dairy industries' problems." 0 Mr. Begley said that the Hawke's Bay Co-operative Farm Products Ltd. wour take over the Hastings branch of the Marketing Department, together with its chief officer and servicing equipment. The Hastings branch was acquired by the Marke'-ng Department when Messrs. Picot Bros.' business was purehased by the Government some time ago. The new company would be prepared to negotiate with other distributors for such portions of their service equipment as might be Tequired in the new business. An interesting feature of the agreement, said Mr. Beglej, was the inclusion of the New Zealand Co-operative Pig Marketing Association and Kiwi Bacon Co., as a shareholder of the new company, thus co-ordiqating another co-operative organisation. As it was the intention of the association to extend its pig-collecting operations to this district during the coming season, another complete co-operative link had been forged which must result in advantage to the dairjdng industry in this province. "In my opinion," continued Mr. Begley, "the Government in purehasing Picot Bros.'s business, Wellington, with branches in Palmerston North and Hastings took a very important step towards bringing about orderly marketing of dairy produce within the Dominion, and in securing the serviGes of Mr. F. E. Picot as Director of Internal Marketing, the Government have selected one of the most able men in the Dominion. I feel confldent that under his control the present local marketing problems will soon disappear and a system emerge calculated to give satisfaction to producer and consumer alike. "This new development in Hawke's Bay will nnke history in the dairy industry of New Zealand," said Mr. Begley. "The project is so sound in its conception and effect that inevitably similar action must, in the course of time, be adopjted in other parts of the Dominion." "1 cannot pay too high a tribute to the Minister and Director of Market-

ing for the very prompt and absolutely impartial manner in which the merita of the proposals were treated by them," said Mr Begley. "The Government can rest assured that in adopting this policy it haa the solid and unanimous support of not only the companies concerned, but the whole of the producers throughout the Hawke's Bay district." As it had been impossible to have consulted every dairy company in the province^ and keep them acquainted with this development, concluded Mr Begley, the Minister and Director of Marketing were most emphatic that provision ahoukl be made to enable any such company to be admitted as a shareholder of the new company on the [ ' same basis as all other manufactm „■) s I ' already shgreholders, |