NEW DAIRY SCHEME

Sun (Auckland), Volume III, Issue 709, 8 July 1929, Page 10

NEW DAIRY SCHEME

UNION OF AUSTRALIAN AND N.Z. INTERESTS “EMPIRE DAIRIES, LTD.” A union of Australian and New Zealand dairy produce export interests is at present being finalised under a scheme which wii! represent an important development of co-operative marketing- it is said that the proposal may be extended later to Canada and South Africa. JN announcing the details of the scheme, Mr. W. Goodfellow, managing director of Amalgamated Dairies, Ltd., says that Britain’s dependence, during the winter, on the Southern Hemisphere, has encouraged co-operative forces in New Zealand and Australia to come together in the selling arena for economic reasons. The early establishment of an Empire Marketing Company, he remarked, was destined to become an important factor in the marketing of butter and cheese in Britain. Encouraged by the success of the Overseas Farmers’ Co-operative Federations, Limited, established in 1920, important manufacturers in New Zealand had decided to join with fellowproducers and establish au Empire selling floor for the dairy produce of Australia and New Zealand. Butter will be produced and distributed in special pats, preserving Identity and establishing quality under a “one brand” idea for each country. BIG SAVING EXPECTED The policy of Empire Dairies, as the new company will be called, is one of direct consignment, the control of which, In Britain, will be in the hands of Messrs. J. B. Wright and A. E. Gough, directors. It is expected that there will be considerable saving of overhead expenses, besides the advantages to be gained by concentration of selling forces. As the scheme is purely cooperative, all profits, apart from a limited interest on capital, will be returned to each country. “The agreement is between the Australian Producers’ Wholesale Cooperative Federation and Amalgamated Dairies, Limited,” Mr. Goodfellow said. “The new company—Empire Dairies, Limited —will be a co-opera-tive venture for the marketing of dairy produce from all Empire countries.’ ’ The Amalgamated Dairies, Limited, would hold a substantial financial interest in this company, and would act as agents for New Zealand, he added. Likewise, the Producers’. Wholesale Co-operative Federation of Australia would represent Australia, while shares would be reserved for Canada and South Africa. DISTRIBUTION PLAN Amalgamated Dairies, Limited, would utilise Empire Dairies as well as the existing Tooley Street firms employed by the company, to distribute produce in the United Kingdom. It was a matter of vital importance to the producers of both Australia and New Zealand that all unnecessary competition in the selling of dairy produce should be eliminated and that the two countries should combine in the United Kingdom for the selling of their produce. Empire Dairies would commence operations in London on October 1 next, the European operations being controlled by Messrs. Wright and Gough. There would also be two directors appointed by the Australian Producers’ Wholesale Co-operative Federation, and a further two by Amalgamated Dairies, Ltd., of New Zealand. The chairman would be elected alternatively by the Australian and New Zealand interests. Empire Dairies, Ltd., would accept consignments of Empire dairy produce only, and would help to stimulate the demand for a large and growing section of the British people for free trade within the Empire. In the meantime a change is to be made in the policy of Amalgamated Dairies. ALTERED POLICY Mr. Goodfellow said that on account of the Australian agreement, the directors of the New Zealand Co-opera-tive Dairy Company Ltd., and Amalg-a-mated Dairies, Ltd., after conferring with Mr. Grounds (late chairman of the Control Board) had decided to at once make some very important alterations in the policy of the latter company. In the first place a dairy council would be provided for, to consist o! the chairman of all companies entrusting produce for sale to the care ol Amalgamated Dairies, Ltd. This council would meet in Wellington, or some other central place annually, or at any time in case of a crisis, and would, in addition to considering market problems, nominate three directors to the Board of Amalgamated Dairies, Limited. Two of such directors would represent the North Island dairy factories and one would represent the South Island. Meetings would be held within the next week or two upon request sX suitable centres In the North Island with the object of giving the directors o the co-operative dairy companies the fullest possible information regarding the new scheme. FIRST CONFERENCE PROVINCIAL BUSINESSMEN Representatives of chambers of commerce in Auckland Province will meet in conference for the first time on Wednesday. For consideration by the conference, which will sit for two days, several remits have come to hand. Delegates will inspect several city industrial concerns before the opening and will attend a theatre in the evening. A trip round Auckland will be made on Thursday morning. At a luncheon, Mr. R. L. Ziman will speak on “Unfair Public Trading.” LONDON CHEESE MARKET The following cable has been received by Joseph Xathan, Limited, from the London agents:—“Cheese, white, 90s; coloured, 025.”