DAIRY SUPPLIERS.

Hauraki Plains Gazette, Volume XXXV, Issue 4773, 7 November 1924, Page 3

DAIRY SUPPLIERS.

< CONFERENCE OF COMMITTELb’ review of industry. Meetings of committees of suppliers to the N.Z. Co-operative Dairy Company were held in the Gaiety Theatre, Paeroa. on Wednesday, and at Ngatea on Thursday, when Mr A. J. Sinclair, general manager, gave interesting addresses. At Paeroa Mi’ G. Buchanan occupied the chair. SUPPLEMENTARY PAYMENT. Mr. Sinclair said they would all he glad .to learn that there was every possibility of a supplementary payment. ■ At the end of the season there were about 3000 tons of butter to sell. They had since received word fj’om Mr J.. 8. Wright, their London agen:, that he had disposed of most of that quantity up to 2245. That morning he had received a cable stating that 22 Ss had been received. The outlook was bright for the present season, and he expected to learn that the remainder of last season’s output had been cleared at satisfatcory prices. They hoped to bring the season's payout up to is 7d per lb butter-fat. There would also be a small supplementary pay-out with -regard to cheese. He had received a cable giving the price of sales at up to 975. It was impossible to say when the payment would be made or what would be the exact amount. Someone suggested .that it would be a nice Christmas box. With regard to the present season the quantity was better than laat year, but the quality was not so . good. In August the grade had been stiffened up. It was very desirable that the Dominion butter should be on top for quality and the finest butter- sent to the United Kingdom. It had been decided that no- cream would be graded superfine if tire butter did not grade 92 points at the Government grading store. At Paeroa 30 pet cent, of the cream was considered superfine, but not a single box of butler was graded superfine. They .were very much surprised, and inquiries were made. Only two factories in their territory had turned out superfine grade. The Government gradei paid the standard had not been altered. It had been assumed that the graders had been stiffening up as well as the company. Something, it was thought, must be seriously wrong, and the managers called a conference to consider the matter. About that time the quantity of superfine increased. Suppliers did not suffer. Paeroa was slightly below the average for grade, being 90 points, while the average was 91 points. MARKETING. There was not much to worry about in connection with the cheese. Mr Wright had reported that the price would probably. be good till after Christmas. They were selling more milk powder than they could manufacture. The company had been developing trade with the Far East. Eighteen months ago they sent a representative with samples to stay for some uttys in the big towns in the East, and learn about the markets. Good prices were obtained and orders were received from Java, Japan, Manila, and india. Their representatives obtained oldens for £lB,ooo’ worth of prouuce in Manila. It was disconcerting to find that the proprietary companies were working against them and reaping the benefits of their pioneering work. These companies were quoting 5-id less than the N.Z. Co-op. Dairy Co. Prices were not known, but these concerns were prepared to go %d less io try and capture the trade. Those present would remember the offer to sell to the Waikato Hospital Board at %d per lb less than the N.Z. Co-op. Dairy Co, They objected to insane competition. CONTROL BOARD. .Dealing with the work oi the Control Board, Mr Sinclair said it was evident that some control was needed to deal with insane competition. He hud been asked what the Dairy Control Board had been doing. There had been an impression that the Board was marking time till, the delegation returned home and submitted its report. So far as marketing in the United Kingdom was concerned that was correct. The. delegates would be here-about the middle of January. They would then submit their report to the Control Board and get to work right away. They had read of the shipping contract made by the Board. Exercising the powers given under the Act the Board had, in conjunction with the Meat Control Board, made a contract for three years. The rate for butter was 4s, against 4s 6d previously. a reduction of j.l per cent. On cheese the rate was 29-32 pence per lb for the first two years and 28-32 pence per lb for the third year. One thirty-second of a penny did not seem much, but it .meant a saving to the dairy companies of New Zeal,and of £lB,OOO in a year. On cheese they were getting a reduction of 9.37 per cent, for the first two years and 12% per cent, for the third year. FREIGHT AND INSURANCE. Mr Sinclair explained the difference between prices c.i.fl. and f.o.b. A farmer sold his produce at prewar prices, but when he wanted to buy anything and compared prices with those he paid in 1914 he found that they- were 60 to 80 per cent, higher. Meet farmers would be satis- . fled with Is 6d for butter-fat if they were only asked to pay pre-war prices for what they wanted to buy. The shipping rate for butter vas 60 per cent, above pre-war - level, and for cheese it. was 81 per cent, higher. He wanted to be as optimistic* as he could, and he thought it would be interesting to show what the savings in shipying would mean in hard cash. Oh last year’s basis of output it would mean a saving of £355,600. The railway freights for butter were 120 per . cent, .above the pre-war level, and the Government had put forward a veiy ingenious argument against any reduction by pointing out that the 1914

rate was far too low. The Control Board would give its attention to this particular matter. Another matter was insurance. The Board, by exercising the limited powers of control it had been given, was trying to arrange insurance with one company The rates for butter under the new arrangement were 7s, and for cheese 8s 6d, with a reduction to the East Coast of America. This seemed a very tsmall thing, but it meant a saving of £25,000 to the dairy companies of the Dominion. ENGLISH MARKETS. Mr Sinclair read a letter from Mr Claude Motion, one of the Dairy Delegation, dated London, August 15, stating that Liverpool had the best cold storage and splendid equipment, and that it was a pity that this was not at the port which was of the greatest importance to the Dominion producers. The letter also stated that those handling New Zealand produce were anxious to get an assurance that they would be allowed to handle the same quantity in future, and those who were not handling it wanted a share Another statement by Mr Motion was that within a radius of 50 miles of Liverpool there were more people than within the same radius of London, but Argentine butter was -oing to Liverpool and was selling ac low prices. At Manchester there was a prejudice against New Zealand butter because it did not ocme in casks, and for that reason it was thought that it could not be of. good quality. Mr Motion’s remarks on the C.W.S. confirmed conclusions arrived at when negotiations took place with a view to dealings with that organisation. The C.W.S. had a large outlet for butter and cheese, but was anxious to buy in the cheapest market, and as the dairying people were out to sell in the best market the conditions desired were entirely opposite. The C.W.S. manufactured a large quantity of margarine, and had a factory which cost £400,000, with a Dane, a very able man, in charge. Over 800 hands were employed under one roof. ~ . x - Continuing, Mr Sinclair said that m the dairy industry the trend was the same as in banking, shipping, and other large business concerns, and was towards amalgamation and cooperation. Before concluding Mr Sinclair explained the provisions of the Dairy Industry Bill recently passed by Parliament.