PROPOSED DAIRY PRODUCE POOL.

Taranaki Daily News, 31 May 1922, Page 8

PROPOSED DAIRY PRODUCE POOL.

(To the Editor.) Sir, —About two years ago the leading members of the National Dairy Association, together with Mr. Ellison put before the producers a marketing scheme through the Wholesale Co-operative Society. They claimed that the scheme which they then advocated would stabilise markets, control distribution, and make everything in the garden lovely for dairy producers. But do we find everything m connection with dairy produce lovely? No, their scheme failed, and now the same good prophets are trying, with the assistance of Mr. Goodfellow, to ram a similar scheme down our throats. The former scheme failed; are the producers going headlong into the present one? Re Danish and New Zealand butter: It is claimed that the discrep' ancy between pricces of Danish and New Zealand butter during the past season would not have occurred had New Zealand had a compulsory pool. The difference in prices was caused .solely by the shortage of Danish butter and the fact that Government stocks of old and stale New Zealand butter were being sold: a saying of £60,000 is claimed by the pool advocates. Ido not fancy they will seye much after paying a board of about 20 directors and their clerical staff. Meat Pool: The example of the ineat producers is held up as one worthy to, be followed. It should be remembered that the meat pool board has not put into force the ccompulsory clauses which it has authority to do. ' They have realised the disadvantages of compulsory pooling of meat and are directing their energies to the bringing down of charges in London, such as insurance, freight contracts, and also trying to reduce the freezing and producing charges in New Zealand. Producers are free to sell or consign as they think best. Accounting for Produce: Mr. Goodfellow stated that several iniquitous practices have arisen with regard to accounting' for consignments, and said all houses have adjusters, who average out the prices of consignments. Our experience is to the contrary, and o<ir account sales always show the act'jal prices received for each parcel of butter or cheese sold and the town in which sold. Mr. Goodfellow should be well aware of this fact. I understand that the Marketing Association, which is a producers’ concern run by the advocates of the proposed pool, has not only averaged prices for each brand, but averaged prices for all brands consigned by any one steamer. Is this what the advocates of the pool are trying to bring about? Compulsion: The pool promoters wish to compel all dairy factories to export their produce through the pool. This will mean the elimination of competition amongst consignment houses. If all produce is exported through the one channel, what check will there be to say whether prices are good or not? If all factories are compelled to send their produce through the pool, it will mean the sacrifice of the individual directorates’ judgment. The companies will hand over control of the market ing of their produce to a committee over which they will have no power. One of the objects for which the pool is to be formed is for the stabilisation of the market, but if factories are prevented from selling forward, surely one of the chief factors in stabilising the market will be done away with. Under the present system most of the consigning houses are prompt with their returns, and surpluses paid out on cabled advice shortly after produce is sold. If all produce goes through one channel, there will be congestion and delay in rendering sales and the payment of surpluses. If the promoters of the proposed pool had used their good senses during the past two years, and advised all dairy companies to sell their produce instead of advising them to turn down the prices that were offering, and . consign, there would be no need for a ' produce pool. Don’t forget, Mr. Producer, that we have a Box Company, National Dairy Association, and several other companies managed—l believe I should say mismanaged—by the pool ■ promoters. —I am, etc., WALTER C. GREEN. Rahotu, May 29, 1922.