DAIRY INDUSTRY

Hokitika Guardian, 2 September 1929, Page 2

DAIRY INDUSTRY

PROPOSED CONTRACTS CRITICISED.

DUNEDIN, Aug. 29

Ileplying to the telegraphed statement made by Mr lorns, Mr Wright —secretary of the South Island Dairy Association —states thpt, while efforts were made by a section of industry, prior to the Control Board, to get the Dairy Division to adopt “ ■finest” grade, it was nevertheless a fact that only when the Control Board made representation did the Division agree. Some years earlier Mr Singleton had expressed the view that, as long as producers had no control over mimimum prices at the other end it was, perhaps unwise to adopt a 'fresh grade, In June last Mr lorns himself, was reported as stating that he was opposed to “finest” grade.

Mr Wright admitted that the old contracts needed revision, but said there was noting to warrant the proposal to make “finest” grade tlm basis of new contracts. If first grade had been left as the basis with provision lor extra price for the higher grade southern producers would support the oroposal, but they were not accepting a standard contract compelling them to take less than market value.

With regal’d to the statement that 400,000 boxes of next season’s butter had been sold at a price based on “finest” grade if the factory companies chose to make such terms it was their own business,, but it afforded no reason why a national body ,elected in the interests of the whole industry should approve a contract manifestly unfair. Southern producers had no doubl that the object of the contracts was to force down the market value of produce, and that the Exporters’ Association hoped to get the assistance of the board to achieve that end Copies of the contracts were forwarded to London importers so that no time would be lost in taking action after the board had given its consent. The Marketing Association was approached two years ago to join the Exporters’ Association but declined and was not consulted about the contracts.