The Daily News. WEDNESDAY, JULY 14, 1920. MARKETING OUR PRODUCE.

Taranaki Daily News, 14 July 1920, Page 4

The Daily News. WEDNESDAY, JULY 14, 1920. MARKETING OUR PRODUCE.

That the question of marketing dairy produce is of absorbing interest to the producers was amply demonstrated at Hawera on Friday when there was a attendance at the meeting called by the Hawera Dairy Company, the object being to arrive at some workable scheme suitable to all engaged in the industry. Practically the meeting was the outcome of the Palmerston North meeting at which the C.W.S. scheme was approved. That scheme was subjected to considerable criticism before it was turned down in favor of a proposal by the chairman (Mr. J. B. Corrigan) that the constitution of. the National Dairy Association be altered to enable it to establish a selling floor in London under the control of three of the best men that can be procured in England—men that have been in the marketing business all their lives—to act with Messrs. Ellison and Brash, these men to give the whole of their services to the N.D.A. and be in no way connected with any other firm or company; also that arrangements be made with the Bank of New Zealand for comsanies to finance their produce

from port of shipment until sold on the London market. It will be remembered that the Palmer-, ston scheme involved the formation of two companies, later to be merged into one, a price-fixing committee, and linking up with the C.W.'S. The general tone o i ! the meeting , was against the C.W.S. scheme, concerning several features of which Taranaki dairymen are far from satisfied. Their almost unanimous support of Mr. Corrigan's motion should carry considerable weight with the special committee set up at Palmerston North to deal with the arrangements in regard to the future marketing of produce. Perhaps it does not offer a solution, but it may be preferable to joining up with the C.W.S. An important point to be considered is finance. Both Mr. Corrigan and Mr. Morton said that the banks would finance on the produce itself as heretofore. Will they ? In the past the banks have not financed on the produce itself; they have only partly done so, the capital and credit of the companies buying or consigning the produce being available as additional security to the banks. If prices were staple it would be a different matter. Under the C.W.S. proposal, that concern will finance 40 per cent of the value of the produce, the New Zealand producers themselves having to finance an equal amount. Even if this can be done, would it prove satisfactory to dairy companies? We*were told before that the special selling committee to be set up of New Zealand an,d C.W;S. representatives would fix prices from time to time and any produce firm would be able to buy as well as the C.W.S. We suspected that "the C.W.S., in return for "services rendered" would demand the first refusal of the produce. Mr. Morton now practically acknowledges this to be the case. Thus the C.W.S. will be in the peculiar position of selling with one hand —through their representatives on the Selling Board—and purchasing with the other on behalf of the co-operatives societies of which it is the head. It is, to say the least, an anomalous position, and one, we fear, that will not work out satisfactorily for the New Zealand producers. Better by far, as Mr. Corrigan showed, have our own straight-out selling committee, comprising experts—men who have been at the game all their lives—than amateurs who would have to purchase their, knowledge at the producers* expense. One great argument used by the supporters of the C.W.S. scheme is that it will eliminate the middlemen and save the commission they command. Some very harsh things have been said by the promoters regarding these middlemen—who are, one would .suppose from such statements, nothing more nor less than commercial cormorants—but not a word is said about the value of their services to the producers. Whilst they may have been making £200,000 a year, it is conceivable that by their ability and knowledge of the markets they may at the same time have earned for the New Zealand producers twice that sum. The fact is that the promoters are seeking to eliminate the middlemen and at the same time are setting up their own middlemen in the shape of the' company that is to operate in London, only that the producers will save half the commissions. It is possible, however, that they may quite easily lose more than they gain in this way. But we are told by Mr. Morton, that the scheme is not perfect;it is only theprelude to the New Zealand producers having their own selling board iu London. The N.D.A. then is only making a tool of the C.W.S. and will drop the latter at a time convenient to the New Zealand producer. If this is so, then the C.W.S. cannot be blamed if they take steps to look after No. 1. They are not the shrewd gentlemen we think they are if they do not do so. If a selling boaffd exclusively composed of New Zealand produce representatives is desired, why not set it up now? That, of course, is what Mr. Corrigan desires, with the important proviso that experts be engaged to do the selling. But is it necessary to go to all this bother when a solution lies at the door of the producers? In Denmark all the selling is done by a board in Copenhagen; also in Canada by a local board. Why not then set, up the board in Wellington, as suggested by Mr. E. Maxwell, and sell the produce there, to the highest bidder, leaving the important matters of finance and shipment to be arranged by the buyers, as heretofore ? If the system works alright in Denmark and Canada, there is no reason why it should not do so in the ease of New Zealand, which is in no position just now to take undue risks and make experiments that might or might not result successfully. For ourselves we do not hold a brief for the promoters of any scheme or party. Our whole desire is to see the best course taken in the interests of producers, who have arrived, at a critical period in their

history, and should very carefully consider their position and look at every phase of the schemes submitted before committing themselves.