SALE ON CONSIGNMENT.

Putaruru Press, Volume III, Issue 99, 17 September 1925, Page 4

SALE ON CONSIGNMENT.

FAVOURED BY NORFOLK. Policy of Control Endorsed. Though favouring selling on an f.o.b. basis to suit special circumstances, the directors of the Norfolk Co-op. Dairy Co., according to a . statement made at the annual meeting; on Monday, favour sale by consignment and endorse the Dairy Produce-. Control Board’s policy of absolute control, and also the suggested election of board members by the Dairy Council. The chairman (Mr. S. A. Ferguson) remarked that the bulk of the season’s cheese was sold f.0.b., enabling the directors to make higher advance payments than on consignment, but it now appeared as thougm a higher final payment would have been made if a consignment policy had bee% adhered to. The completion of the new fac- ' tory at the part of the season resulted in a heavy drain' on .the company’s finances, and had brought the ** overdraft up so that, when what appeared at the time to be good offers * for tire sale of cheese on an f.o.b. basis, the directors considered it would be in the best interests of suppliers to accept these offers and by doing so were able to make considerable saving in interest charges on ad>vances; also to make good payments and pay the final bonus more promptly than if the cheese had been handled on consignment. A satisfactory arrangement had been made for the present season under a consignment agreement, by which the make to the end of December was under a guarantee of not less than 9gd per lb nett f.o.b. The company had also other important guarantees in .the agreement in the company’s favour, which covered the whole season, •- 1

The Control Board, he considered, would prevent the violent fluctuations on the London marker. The Control Board’s policy of absolute control had been supported by the directors. The directors had also supported the dairy • council system of election of board - members, the 20 members of the council from the North Island and 10 from the South Island to be elected on the ward system by the directors of the dairy companies on their export output tonnage basis, with provision for curtailment of voting power by larger companies. The council would then elect the members of the Control Board from their number, portion of the council to retire and vacancies to 4k be filled annually.

“We think,” he added, “by this means the best men would be elected to the board, and would, tend also towards a continuity of policy which is very important in so large an undertaking.”