THE DAIRY INDUSTRY.

Taranaki Daily News, 21 August 1922, Page 8

THE DAIRY INDUSTRY.

NEED FOR CO-OPERATION. LETTER MARKETING URGED. The problems facing the dairying industry in New Zealand to-day were touched on by Mr. H. D. Forsyth at the annual meeting of the Eltham Dairy Company on Saturday. Mr. Forsyth said they would have to improve their farming methods, and still further improve their opportunities in this way. He further advocated an extension of the co-operative methods. They had co-operative dairy companies, the box company, the rennet company, meat companies, etc., but they should go still further and co-operate in -carrying and marketing their produce. They should have a federation of dairy companies, and he advocated that South Taranaki should lead in this movement. They would then be in a position to deal more satisfactorily with many problems which- were at present serious ones. There was not a factory in Taranaki which was not under-capitalised. The paid-up capital of the Eltham Company was £36,000, and they had assets that would reaHse £lOO,OOO. The dairy companies of the Dominion had many conflicting interests, and they should federate to overcome this. There were associations for finishing and marketing their produce in both America and Holland. He outlined some of the methods, and expressed a firm conviction that such federations would be of immense value to New Zealand.

The control of the marketing of their produce was another matter of vital importance to the industry. They could not blame the Tooley Street merchants for the advantages they took, but could only blame themselves for giving the merchants those opportunities. They wanted to cut to a minimum the expenses between producer and consumer, and also to regulate the delivery &nd marketing of their produce. He then referred to the origin of the Danish marketing system. One merchant at Copenhagen commenced publishing the price weekly, and business was done on that price. Other merchants joined him, and eventually the dairy factories obtained representation on that board, but found it was of no advantage as the merchants were still in the majority and continued to fix the price themselves. Subsequently the factories elected a committee of their own, and had eventually succeeded in obtaining fair treatment and cutting the merchants’ over-price to a minimum.

The chairman then went into the history of New Zealand’s attempts to market its own produce. Two years ago the last and most successful attempt was made. An association had been formed which controlled the sale of about half their produce, but the other half was available for the merchants and could be used to fight the association. They had, however, obtained from the merchants—for the first time in twelve years—more than the market price for butter and cheese. They wanted, however, more unanimity and loyalty to obtain the best results. To be really suc-

cessful they must have full control. Continuing, Mr. Forsyth condemned the* lack of facilities at the Port of London for the unloading and storage of their produce. If they had control such as he had suggested, they could secure and give equal treatment, could store, feed and stabilise the market, and do away with the agents wjio were now overrunning the Dominion at a cost of £60,000 to butter-fat producer?.