DAIRY POOL.

Taranaki Daily News, 8 May 1922, Page 5

DAIRY POOL.

PRINCIPLE AFFIRMED.. OPINION OF PRODUCERS. SCHEME TO BE FINALISED. An almost unanimous endorsement has been given by North Island pro- * ducers to the proposed dairy pool, for the regulation of shipments; opening, developing and stabilising Home markets, and co-operating with Denmark and Australia in the marketing of dairy produce, according to Mr. T. G. Brash, secretary of the National Dairy Association. In making the above statement to a representative of the Dominion, on his return from a tour of the North Island, Mr. Brash gave a confident forecast of the early establishment of a dairy pool on similar lines to that instated by the Government in connection with New Zealand meat. “I have just returned,” said Mr. Brash, “from having attended meetings in. Hawera, New Plymouth, Auckland, Hamilton, Wanganui, Palmerston North, Dannevirke, and Carterton. The results are most gratifying. Whilst at a few of the meetings there were one or two delegates opposed to the dairy pool, at the great majority of them the resolution to establish a compulsory pool was carried unanimously, it is evident that the dairy producers of the Dominion have quite made up their minds that some better principle should be aimed at than the existing method of marketing butter and cheese at Home. “At an early date delegates from the different dairying districts in the Dominion will assemble in Wellington to finalise the proposal. It is anticipated that the pool will be in operation in time to handle next season’s business. The main principle involved in the pool has been affirmed; it is only in connection with some’ of the details of the scheme—the amount of capital required, the number of directors necessary, and so forth —that there is any conflict of opinion among the producers.” BASIS OF THE POOL.

“The first meeting I attended, the Hawera one, held the day before Anzac Day, was the first of the series. At its commencement the question of the admission of the Press came up, and it was the general opinion of the meeting that the people of the Dominion should know every move in the progress of negotiations. Not only were the Press admitted, but agents of distributing merchants were also welcomed. “The scheme outlined by Mr. Arthur Morton, chairman of the National Dairy Association, and Mr. W. Goodfellow, managing director of the New Zealand Dairy Association, forms the basis of the pool.” It was not a new idea, added Mr. Brash; a dozen years ago it was mooted by the National Dairy Association. Dairy factory directors actively discussed it during the last twelve months, but it was not until the Government introduced the meat pool that its successful establishment was forecasted. Various means, more or less successful, had been established to improve marketing methods, in the. direction of ensuring a greater and more prompt return to the producer, but the result was never satisfactory. It may be impracticable for all dairy factories to join the pool, but, if compulsion was good for the meat producers, it was equally good for the dairy producers. One of its great benefits would be that all the dairy produce would be marketed as “New Zealand produce,” irrespective of factory, brand or grade. Paid for on its merits, the incentive to raise grading points and quality standards, which did not now exist, would always be present. Under the pool the Department of Agriculture could achieve the producer’s ideal of a superfine grades for factories grading over 92 or 93.

THE MOTIVE FORCE. The glut and slump in London in the closing months of last year, were the motive force behind the pool. What was needed was a concern powerful enough to: (a) Regulate shipment. (b) Open and develop markets other than London. (c) Advertise New Zealand butter and cheese. (d) Control distribution, with the object of obtaming full market values. (e) Stabilise markets by preventing congestion and speculation. (f) Make advantageous freight contracts. (g) Co-operate with Australia and Denmark in marketing. The average observer, said Mr. Brash, must be convinced that, had there been a system of control, such as enunciated in the dairy pool, proposals, butter would not have fallen from 2625, in July last, to 118 s in Christmas week. Cheese fell from 140 s to 78s in five months. There was probably no bigger percentage of rogues in Tooley Street than in any farmers’ gathering, but they were clever at their business. Under the present system some agents secured more produce than their firms could handle, and cutting prices was resorted to, in order to quit consignments. The London representative of the National Dairy Association (Mr. Ellison) strongly advocated the pool scheme. The most confident assurance of the success of the dairy pool was expressed by Mr. Goodfellow, who was sent Home in connection with the control of the New Zealand Dairy Company’s sale of produce in London. He had negotiated for the purchase of 5000 tons of butter to a New York syndicate, at a price equivalent to Is to 11.22 d f.o.b. New Zealand, subject to irrevocable credit being established. The deal was upset by a world-wide offer of Australian butter at 150 s per cwt. c.i.f.— about 7d less. The American did not realise the difference. , Conditions were against early season’s butter being promptly delivered. His company lost £128,000 through produce not being unloaded ip a reasonable time. Tooley Street made £lOO,OOO out of the sale of old Government stocks, before the New Zealand Government had had time to cable their acceptance of a partnership in the deal. The three essentials in marketing produce were capital, experience and brains, I according to Mr. Goodfellow’s view. They had capital and brains, but would only gain experience after years of trading on their own floors in England, with inevitable gains and losses. Without capitalising the profits, they would be liable to income-tax at the rate of 8s 9d in the £, but, when capitalised, they would be credited to the various factories, who, in ten years’ time, would thus have paid up all the capital, without providing a penny cash. Mr. Brash will leave immediately to confer with producers in Marlborough, Nelson and Westiand. This will complete the Do- ' ’’Uion tour* ahanad Aour sunthe ago.