DAIRY POOL

Taranaki Daily News, 9 June 1922, Page 5

DAIRY POOL

THE SCHEME REJECTED. SOUTH ISLAND DECISION VARIOUS REASONS ADVANCED. MAY END THE PROJECT. The dairy pool scheme was rejected by the South Island Dairy Association yesterday, a report of a special committee giving reasons against supporting a Dominion pool being adopted. Mr. T. C. Brash, secretary of the National Dairy Association, states that as far as he can see this decision means the end of the pool for the whole of New Zealand. By Telegraph.—Press Association. Christchurch, Last Night. The proposal to establish a Dominion Dairy Pool, controlled by the producers, was discussed by the South Island Dairy Association. The report of the South Island Dairy Association committee dealing with the proposed Dominion dairy pool s'ated: “Let us analyse the position ajs to what would obtain if the pool is established. We are going practically into partnership with the Tooley Street merchants. If we consider them suitable to take into partnership for this purpose, it can be reasonably assumed that they have the confidence of the industry generally, and if this is not so, why not let the producers run their own business without their finance. If it is so, then it is a fact. We say we are going to set up a committee in London \vho will be expected to be superior in the judgment of markets than the agents who have previously handled our produce—a statement which we do not think will be accepted by members generally. “WILL CREATE A PREJUDICE.” “The controlling of produce in the Old Country through a system of pooling will undoubtedly, in the opinion of your committee, create a prejudice against New Zealand dairy produce. It is proposed that the arrangement of shipping contracts should be made by the directors of the pool, and this would mean that the South Island Dairy Association would be an organisation that would have no power to discuss the marketing of our produce, would have nothing to do with the shipping of same, and would become an instij tution through which members, if they !so desired, could purchase supplies. If ; this state of affairs weer brought about it r would mean the disintegration of the asi sociation, and the south would lose its , identity and become a minority in a Do- ‘ minion scheme. The committee unhesiI tatingly states that this is a state of afi fairs not desirable. “An assurance was given at the Wellington conference, in fact a resolution was adopted, that the marketing association should be retained as a distributing channel under the proposed scheme. It was suggested that it be a recommendation to the directors, but the supporters of the marketing association would not accept this, and in order to get unanimity the resolution was accepted and adopted. But the committee wish to impress upon members generally that if they wish" to retain the marketing associafion, that same will have to be very clearly laid down and incorporated in the memorandum of association. FARMERS WOULD LOSE. “The effect of the scheme in the South Island, in the opinion of your committee, would be that dairy farmers would have to content themselves with very much smaller advances than they have obtained in the past. The advances made by factories in the south have always been pence higher than in the north, and this is another aspect of the case which the committee wish to impress upon members, as the position of the average dairy farmer to-day is that he needs the fullest possible advance from month to month. It is hoped by the supporters of the Dominion pool to establish this scheme in time for operation during the coming season, but this, to the mind of your committee, is not x practicable. “We unhesitatingly state that a scheme of this magnitude requires very careful consideration, and that the whole proposed arrangement should be submitted to the various dairy factories in its full outline rather than that the general principles should be adopted and the control handed over to a few individuals as a committee. We are of opinion that the scheme is not perfect and should not be acceptable to members in its present form. We recognise and support the general feeling that there is room for improvement in the marketing conditions, and suggest with a full sense of our responsibility that the South Island Dairy Association do not adopt the proposed Dominion comnulsorv nool in its present form.” ALTERNATIVE SCHEME. Mr. Agar moved the adoption of the report. He said the committee at a later stage proposed to submit an alternative scheme. He was of opinion that if a scheme was brought forward which eliminated the Tooley Street merchants the producers of the Dominion would practically unanimously favor it. Mr. Grigg, of Long Beach, outlined an alternative scheme by which monthly sales would be held in the North and South slands, conducted under similar conditions o tne New Zealand wool sales, except that d produce be sold through the two dairv associations. An amendment, moved by Mr. Hughes (Milford), that the matter be referred to the various companies, was defeated by 65 V °m S an d mot * on carried. Mr. Goodfellow informed a reporter that the South Island report opposing the dairy pool was a bombshell to them. Mr. Brash said that, as far as he could see, the decision of the meeting turning down the pool meant the end of the pool for the whole of New Zealand.