DAIRY POOL.

Taranaki Daily News, 10 June 1922, Page 7

DAIRY POOL.

NORTH TARANAKI VIEWS, SOUTH’S BLOW TO SCHEME. NO LOCAL ACTION. There was an attendance of about a hundred directors of North Taranaki dairy factories at the meeting at New Plymouth yesterday to hear the report of . the delegates who attended the conference at Wellington a few weeks ago to discuss the formation of a dairy produce poo]. Mr. A. Morton presided, and Messrs. J. Brown, J. Wooldridge, and G. Sangster, three of the delegates, 'were present, the fourth (Mr. J. S. Connett) having telegraphed from Wellington that he was detained at the conference in connection with the Main Roads BRI. At the outset the chairman said that it was how a question as to whether it was necessary to go into the matter in view of the decision reached at the meeting of the Sduth Island Daily Association in Ohristchurch not to join in the pool. It had, hb said, been emphasised at all the meetings that unless the scheme was made compulsory and embraced the whole of the exportable produce of New Zealand, the scheme could not be gone on with. The South Island Association had been represented by five delegates, who were to submit a report to the association. This report, which was antagonistic, 'had been adopted by the association, and therefore they could now eliminate the South Island, except as far as individual factories might come in. He said he felt very much di sap y pointed over the action of the South Island delegates, as at the meeting their main objection was as to the basis of representation on the board of control. Though the South Island only produced one-seventh of the exportable surplus, they wanted one-third oi the representation, but finally accepted the basis of 4 seats out of fifteen. In the face of the resolution passed at the South Island meeting, however, it was a question whether it was worth while taking up time to further discuss the matter, though he did not wish to debar them from hearing the report of the delegates. TIME NOT OPPORTUNE. Mr. Lepper (Lepperton) considered that the report of the South Island meeting was pleasant. He had felfT married to the scheme, but considered now that the time was not ripe to go in for any new scheme. They should wait until they were in a stronger financial position before undertaking such a large scheme. He wished to touch on something regarding the freezing works, but the chairman ruled this out of order. Mr. Gray (Okato) hoped that if anything further were done the Government would appoint the chairman of the London board, who would act as stipendiary steward. He considered Sir Thomas Mackenzie would, be the right man, and if his name had been suggested it would have allayed a great deal of anxiety on the part of the shareholders. He did not think a New Zealand board was required, as the dairy factory secretaries could do that work. Mt. Freeth (Pukearuhe) said that more information was required about the scheme, and since last meeting a fair amount had been obtained. He was not altogether antagonistic to the scheme, but wanted more information, and considered the time ripe to have the matter discussed fully, with a view to obtaining some better proposition. The White Cliff suppliers suggested that the produce should be auctioned here at the principal freezing stores. They would thus have world-wide competition, and receive eash for their produce. For years past they had been aware that the marketing had been very unsatisfactory, and they also did not know how they were going to end up at the close of each season. Indeed, a lot of factories were in a serious position owing to having overdrawn last year. If they auctioned their produce as the Danes do they would know the position, particularly if they held the produce here in their own hands. The general trend of opinion was opposed to dealing with Tooley Street, who, it was said, did as they liked with the produce, hut if the produce was held here in the freezing works, the producer could control it and say whether he would sell it or not. SEPARATE POOLS. Mr. Brown said that one weak spot was the question of finance while the producer was holding the produce. The main idea of the pool was to provide the finance. He said they should consider whether it was worth while discussing a pool of the North Island irrespective of the South Island. As far as he could gather, while not feeling anxious to pool with the whole of New Zealand, he thought the South Island might form a pool of their own. He pointed out that the South did not affect the position much as regarded butter, as they had very little exportable surplus. It was no use considering a Dominion pool, as the South Island had turned it down, and it was a question whether it was worth while going in for a North Island pool, or dropping it altogether. He did not think that Mr. Freeth’s scheme would work, as butter was different from wool. Auctions would not give them world-wide competition. He pointed out that the pool would regulate the way in which the produce was put on the market, and instanced where two boats had recently arrived in one week, causing a drop in the price. If they did not start something they would never get anywhere. They might make mistakes; indeed, they had done so in the past, but they had always weathered them.

In reply to a question as to whether the Government would legislate for a pool for the North Island or not, the chairman said that the . Government had promised to do as ifiucli for the dairy produce control board as it had for the meat control. It was doubtful if it was advisable to ask it. It was no use having a pool in the North Isanti unless it were for butter alone, because a fair portion of the cheese would be outside the pool, as Otago and Southland manufactured considerable cheese. The Government possibly might legislate it the North Island people were unanimous. It was pointed out that there was difficulty in confining it to butter factories as far as Taranaki was concerned, because most Taranaki factories had dual plants, and on the present outlook it was possible that all would be making cheese next season. Mr. Freeth said they had received , very little informatiou a* to how it

was .proposed to work with Tooley Street. The chairman explained that the control board would work on th® same lines as the Danish committee, which fixed the price from week to week according to supply and demand, and it would then be open to Tooley Street or anyone else to buy it. There would be no difficulty regarding finance, because Tooley Street would be assured of supplies in accordance with its distributing capacity. Five of the leading Tooley Street merchants had approved of the scheme, and he understood a number of others had also done so. The opposition came from Tie traders. Mr. Ranford pointed out that the directors had nothing to lay before their shareholders.

A director asked whether the North Island pool would provide for compulsion. and on several voices replying ‘‘yes,” remarked that it would have little chance.

Mr. E. Taylor considerecr that to .form a North Island pool would be playing into the hands of Tooley :Street. . Air. Rowlands did not think they had a hope of dictating prices to Tooley Street. The Danish scheme was different, as they dealt with multiple shops. They wanted competition, and he considered these schemes did more harm, and many companies had had to suffer through linking up with schemes that had proved failures. For twelve years the National Dairy Association had dsked its London agent to formulate a scheme, and he trotted out the C.IV.S., which had proved a failure. On top of that the N.D.A. had lost £16,000 handling benzine, etc. What would be. the position if it handled the whole of the produce? DELEGATES’ REPORT. After further discussion. Mr. Gibson said that dairy factory directors Would be more satisfied if they had more details as to how the financial arrangements, etc., were to be carried out. He pointed out that the essential difference between this scheme and the Danish was that the latter was not compulsory. On the motion of Messrs. Kurth and Burrell it was resolved that the delegates should submit their report. Mr. Wooldridge then read the report of the procedings at the meeting of delegates as already reported in the Press, and in the circular issued to dairy companies. The conference had affirmed the ]ft-inciple of the control board being set up, which was all it had power to do, and the resolution reported in the Press that a board had been formed was not correct. Neither had the resolutions been carried unanimously. It was also decided that the C.W.S. should be regarded as one of the channels of distribution. Regarding finance, he. understood that Mr. Goodfellow's idea was that letters of credit should be established by the merchants, as was none in the ease of his own company. It was, however, for the provisional board ir. get from Tooley Street an assurance that this would be done, as if they were not then the scheme could not be gone on with. From the details available, he admitted that he would not like to advise his directors whether to vote in favour of linking up with the proposal or not. “DOOMED TO FAILURE.” Mr. Brown said that until they had decided to form a pool it was no use going to Tooley Street or anyone else to finance it. They had decided on broad lines that a control board should be formed, and could go no further until the decision of the South Island was received. He considered that it would only be a waste of time going on with the scheme unless it were made compulsory, as otherwise it would be doomed to failure. After thirty years’ experience he considered the doing away of the joint and several guarantee was the greatest mistake co-operative dairy companies had ever made. The C.W.S. scheme had been a failure Because it had been left to individual factories to say whether they would join in or not. If they allowed factories to drop in and out of the scheme when it suited them it would prove a failure from the start. He added that he was quite prepared to go before his directors and advocate the formation of a North Island pool, because if they did not make a start they would never get away from where they were. All had been crying for years to get away from the present state of affairs, and all recognised the necessity, and they must endeavor to regulate the question of supply as soon as possible, as the arrival of several boats at once made a considerable difference. Another drawback was that their produce was only on the market eight months in the year. The main question was whether both butter and cheese should be included in the North Island pool. Personally, he favored including both, because he thought there would be more prospects of get- ■ ting South Island cheese in than but- ; ter, and after all, the South Island only exported 40,000 to 49,000 boxes of butter. _ NOTHING DECIDED UPON. The chairman pointed out that the North. Island exported 85% per cent, of the produce and the South Island 14A per cent. Mr. Gibson moved that the delegates ■ should be thanked for their services. Mr. Ranford seconded the resolution, l which was carried. Mr. Brown considered it was not I right to say that the South Island had • turned down the pool. They had turned down a Dominion pool, but were i prepared to go on with separate pools for each Island. Tlje chairman said that for years the ! necessity for some improved method o! marketing had been admitted, but no one had been able to formulate ;• scheme that was aceptable to the whol*of the producers. Mr. Gray moved that the question should be referred to the of companies for consideration, and a further meeting be called to consider the result. Mr. Ranford seconded pro forma. In reply to a question the chairman said all companies had statutory power to join the scheme. Mr. Sangster moved as an amendment that the provisional directors be asked to make inquiries as to the possibility of the formation of a North Island pool. This was seconded by Mr. Brown. Both the amendment and the motion were lost, and the meeting terminated.