CREAM CARTAGE

Rotorua Morning Post, Volume 2, Issue 217, 7 May 1932, Page 6

CREAM CARTAGE

COSTLY DUPLICATION N.Z. CO-OP. DAIRY COMPANY ADYOCAATES FUSION OF INTERESTS. STATEMENT BY MANAGER. Overlapping in cream cartage, which was discussed at specially convened conferences at Matamata and Te Awamutu recently, is touched upon by Mr. C. J. Parlane, general manager of the New Zealand Co-ope-rative Dairy Company, in his message to suppliers appearing in this month's issue of "The Exporter." Mr. Parlane states: — "At each meeting we further emphasised our company's view that while we recognised the heavy annual loss due to duplication of cartage, far greater losses were being incurred by duplication of cost in other sections of the industry and therefore the proposal to run combined cartage services, even if found practicable, would not solve the industry's major problems. "We drew particular attention to the large amount of dairyfarmers' capital locked up in unnecessary factories and to the heavy expenditure by all companies in obtaining and retaining supply. Our representatives strongly advocated a fusion of interests between those companies which are at present keenly competing with one another, as such a movement would result in a system of one large factory, in each approved centre, working to capacity and at the lowest possible manufacturing cost. Incidentally, duplication1 of cartage services would automatically be eliminated... Better Marketing. "A further and extremely important aspect of any such fusion of interests would be the possibility of greater co-ordination and efficiency in the marketing of our dairy products as compared with the present system which promotes competition amongst the individual sellers with consequent lower prices. "While the soundness of this larger view appeared to be recognised by some of the other dairy companies representatives it was quite plain that at the present time the majority of dairy companies are not yet prepared to accept such a movement and no definite progress along these lines was made at the meetings referred to. "There is no doubt that the industry suffers heavy losses annually through duplication of cartage services but the adoption of the proposal for community cartage, even if it were possible under the present competitive system, would only tend to preserve a system where even greater duplication in other respects is in evidence. We cannot subscribe to a proposal which only deals with a part of the problem and consider it wiser to deal with the major difficulties and automatically eliminate the smaller ones at the same time."