DAIRY CONTROL.

Hauraki Plains Gazette, Volume XXXVI, Issue 4813, 20 February 1925, Page 4

DAIRY CONTROL.

REPLY TO CRITICISM. STATEMENT BY CHAIRMAN. Mr W. Grounds, chairman, of the Dairy Control Board, has issued the following statement: — “The overseas delegation never attempted to give a full and complete explanation of all details leading up lo cir conclusions, but I submit that a more careful reading of tiie report would have avoided much of the cr>ticiism and the anxieties which quite naturally arise from such criticism. “Our suggestion that ‘the board should undertake the responsibility of all sales' has been taken as an isolated recommendation without consideration of the associated opinions expressed. 'That every wound firm or orgai’isalion wishing to serve as distributors of New Zealand produce should be given an opportunity of proving .their sales capacity.’ This quite obviously includes all the Tooley Street houses, whose ability and spirit of ■service the report recognises, while the report further records the existence of, wholesale merchants who consider that if given the opportunity they could improve our service. ‘‘Dealing with the opening up of provincial centres for distribution the report says: ‘The selection of a few sound, keen houses in each of these centres, in addition to the London houses having offices there, would add zest to the propaganda required for developing our trade. What new. revolutionary, or dangerous proceeding is involved in these recommendation ? CO-ORDINATED EFFORT. "The i.espousibility of comparing the results of each, of Hie agents, would fall upon the board’s London agency, and these comparisons would be of little value to the industry if that agency had not the power to divert supplies from.the least efficient to their more successful- competitors. Under a watchful board this system ‘would provide much more real competition than anything that exists at present.’ All these points were individually discussed with all the importers and many other leading interests in the trader and no sound reason was advanced against the practicability of the recommendations embodied in the report. Tooley Street recognises much more clearly than most people in New Zealand the weak-, nessses of the present methods. The course is now largely decided by the weakest elements, as some of our personal observations would prove. We suggest co-ordinated effort, guided by the experience and judgment of the best elements in the trade. A London board, with a commercial manager acting in conjunction with an executive committee of the importers —for we think the first action of the London board would be to- call the importers together—would be a mue.n finer tales organisation than anyone can dream of arising out of the present system.

"It should be understood —and we wish every newspaper would emphasise it—that we do not conceive of this organisation for monopoly, purposes. We have no delusions about fixing the level of price on the London market. We have to sell on a competitive basis with other countries. The report indicans the c: input’tion we expect to nave to face. We need to organise for service. vVith this and a clear idea of our rapidlyincreasing production lies the crux of the whole position. EXTENSION OF markets. “For our national prosperity we need to produce more and still more. Wbat then, shall we do .with it ? We must organise for service. We must secure a steady demand for our average production. As our production increases our markets must be extended. The Danes have established, by their service, a steady demand for their average production, which demand has become so stabilised that even 5d per lb above New Zealand prices does not disturb it, although on a quality basis little difference is justifiable. -We have established a steady demand for. a limited quantity of our production. Some months ago, when the available supplies ofl New Zealand were not equal to- the stabilised demand for it, our prices went higher than Danish. Could anything be more plain ? SHIPPING QUESTION. ' “All sections of the country appear to favour a limited control. Howmuch ‘limited’ ? So that it will be ineffectual ? I am no advocate of recklessness, but pimply ask that each suggested solation, or alternative, shall be carefully thought out. Some suggest that an equalisation of shipping will suffice. To give the shipping companies notice of space required. decisions regarding shipments have to he made,from three to four

months abend of delivery in London. W-th a dull sense of the responsibility involved, will anyone suggest that

such decisions could, on the average, be as sound as if made on the spot, when produce had arrived ? For several reasons a regulation of shipments is desirable. But with the possible variations in supply from other coun-tries-rr-Argeißine this year is down, Australia has an abnormally large export, and who will say what the supplies from Siberia and Northern Europe will be this next autumn — ■will it be said that estimations three or four months ahead of the marketing should be the last word in the mutter 7 It is simply substituting one gamble for another. “We recognise there are risks in th'j course suggested by the delegation. How to rduee them to a minimum lias engaged our serious attention. To control by regulation .if shipping alone leaves a vast field of opportunity for those engaged in the speculative side of the business. The London board should have the power to vary the How of the produce when it if they think necessary. This is only what sound practice would demand in any other matters. AH appear to agree about advertising, but some have evidently not realised the necessity for advertising and sales to work closely together for the former to be successful. A VITAL NECESSITY. “Developing new centres of distribution is recognised by all as a vital necessity. To do this successfully steamers must be arranged for, say, every month regularly. Sufficient must be sent to keep that market supplied until the arrival of the next steamer. Unless this is controlled by the board, will factories undertake to send and store the requisite supplies ? Over supplies must be avoided in developing new markets, or suppliers are driven completely away and you come back to your starting point, with a prejudice against new markets, which is the position ofl many factories at present regarding West of England ports. Merchants say that without regular and guaranteed service business cannot be developed. Ships cannot be arranged for unless they can be filled. Each depends upon the other. The board alone can arrange satisfactorily for both. “These are problems which have to be faced. Avoidance does not cause them to shrink, nor examination in a false light tend to a full understanding When this has been done I think the soundness of the recommendations of the delegation will be widely recognised.”