DAIRY INDUSTRY.

Taranaki Daily News, 23 June 1922, Page 5

DAIRY INDUSTRY.

THE MARKETING PROBLEM. MONTHLY AUCTION SALES DISCUSSED BY PRODUCERS. (By Wire—Special Reporter.) Palmerston N., Last Night. The question of evolving improved methods of marketing dairy produce was discussed by the National Dairy Association conference to-day. The keenness evinced in the proposal was manifested by the large attendance, though the conference was in its third day. Among those present were several representatives of the South Island Dairy Association. The question was introduced by Mr. O. Jerusalem (Kairanga) moving: “That this meeting is in favor of dairy produce auction sales, and that it be recommended to the executive of the National Dairy Association to confer with the South Island Association with a view to establishing such sales.” He said that, if these sales were in operation it would mean a better price for their produce, which would command the world’s markets, and instead of having buyers here from half-a-dozen large firms, they would have dozens of representatives of smaller agents, co-operative societies, etc., thus bringing the producer into closer touch with the consumer.

The sales would be organised and conducted by the National Dairy Association, at the principal ports of the Dominion. New Zealand, consuming one-third of the butter, would be the first competitor, and the sales would fixe the price to be charged all over New Zealand. Butter would be sold on grade, thus acting as a stimulant to factories to produce the best article. Producers would also have the advantage of knowing what their produce was worth without having to wait several months for the final settlement. There would be no compulsion. Factories could place a reserve bn their produce, and if that were not reached they could consign it through the ordinary channels. The sales would be subject to a very small commission, which would strengthen the position of the National Dairy Association. Mr. Sutton (Moa Farmers) seconded. The chairman (Mr. A. Morton) said that the South Island Association passed a resolution on somewhat similar lines. SUPPORT OF THE SOUTH. The South Island delegates—Messrs. A. P. Fleming, C. P. Algar and McKrell — spoke at length, pointing out that the advantages of the scheme were that there was little expense in initiating it and it could be brought into operation immediately. The produce was sold under the factories’ own supervision and control. They would get world competition and get their money each month. Factories could either sell the produce in store or on hoard ship, or a mouth’s output, the complete season’s output, or any part of it, or they need not sell any. Mr. Agar stressed the point that the South Island had given the pooling scheme earnest, careful and sincere consideration, and had rejected it, because it was not acceptable. There was no question of North v. South, as they regarded the industry in its Dominion aspect. He gave reasons why the proposed pool would be unsuitable, and said that out of the levy from the auction sales they could build up a fund that, would be available for future marketing schemes, the ultimate aim being a floor of their own. The system of monthly sales, he thought, would be acceptable to all, and if they thought this was too far from the markets, the sales could be held in London. Personally, he would like to see it tried in New Zealand for one year. It was generally agreed by members that the present system was bad and there was a necessity for drastic alterations, but the difficulty was to get a scheme acceptable to all. Wool sales could not be put on a footing with butter, as the latter was perishable. Moreover, the output of the former was a known quantity, while the latter.depended on climatic conditions. The opinion was also expressed that auction sales of dairy produce in New Zealand would tend to increase speculation. The auction sales should be held in London, as the lapse of time between the sale in New Zealand and the arrival of the produce in London would be detrimental to (he producers receiving the best prices MATTER TO BE CONSIDERED. The pool committee then gave a report on the pool proposals from the time of Its initiation until it was rejected by the South Island. Mr. Goodfellow stated that he felt it was almost a calamity that the compulsory scheme had fallen through, as they recognised that without the moral support of the South Island it would be impossible to get the necessary legislation passed. The pool scheme, therefore, had gone, and they should instruct the committee to bring down some modified scheme which would be acceptable. The pool committee had no recomendation to make, not having held a meeting since the South Island, turned the proposal down until that morning. It was finally, decided that the report of the pool committee be referred back to the committee with instructions to take into fuller consideration the question of establishing an improved system of marketing dairy produce, either by auction or otherwise, and that the South Island Association be asked to appoint four representatives.