The Guardian And Evening Star, with which is incorporated the West Coast Times. FRIDAY, MARCH 6, 1931. MEETING THE SITUATION.

Hokitika Guardian, 6 March 1931, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. FRIDAY, MARCH 6, 1931. MEETING THE SITUATION.

Eari.ikk this week some particulars were published of a conference of North Auckland dairy company representatives, for the purpose of considering costs of manufacture and marketing. In all some fifteen companies wore represented, and the position of the dairying industry was discussed very fully. The occasion for the gathering was the low price for dairy products, and the necessity for meeting the situation in some way so as to reduce costs of production. Among the resolutions reached were two of importance, and as they cover a course of action which this paper has advocated for many years in this district, as a means to improve the returns to tne dairy farmers, we are glad to reouhlish the conclusions of the farmers in the far north as some confirmation of our attitude, and as supplying food for thought for the dairy farmers of this district, who are being unnecessarily penalised just now during the period of low sale prices, by the expensive way in which the industry is conducted through the overlapping of the several factories. The special motions referred to were as follows: “That this conference recommends that the directors of North Auckland dairy companies give the matter of merging their sincere consideration, where it is thought that by coming together it would be in the best interests of the producers affected.

' “That it be a recommendation ro dairy companies to consider elimination of overlapping in cream collection, in cases where reorganisation of companies is impossible.” There is little doubt that tlic advice tendered to the fifteen companies in the north, is just as sound when applied to the seven companies in this southern district. It seems to us quite a reasonable proposition that representatives of the several companies should get together and talk over the general situation. It seems to bo

agreed generally that the prices for butter and cheese are not going to soar again. The world’s ouput js increasing rapidly, and the supply will always lie more than equal to the demand. There is every reason to expert a lower level of prices, and the next best course is to produce more within the capacity of the farm, and see that the manufacturing costs are kept down at the lowest. Mere in Westland there is a marked overlapping in the collection of the cream, and the several .stall's to manufacture mi output which if centralised could be turned out by the auguuietited staff of one faiti.r.v. A well equipped factory such as would be possible with a larger turnover than any separate factory can now hope to turn out, would he able to maintain a uniform article in texture and quality. There would lie an all round saving in production osts at every stage, and that would be available for the producer. The I ical market if wholly in the hands ( f one factory would supply a good return jn itself. That the project is feasible lias been evidently the long distance it is possible to transport cream and produce an article of the finest standard equal to winning the highest price at Home, as Is the ease with one local factory jthls season. This assurance of the practical success of a scheme which could Tie devised should encourage the farmers to give the matter serious thought with n view to early action so ns to desire the possible benefits built on a sound system of centralisation which could surely lie devised with the material at hand.