DAIRY CONTROL BOARD.

Taranaki Daily News, 20 September 1922, Page 7

DAIRY CONTROL BOARD.

OBTAINING BETTER RESULTS. SOME FEATURES EXPLAINED. Speaking to a Daily News reporter, Mr. J. W. Harding, of Inglewood, said there were a big number of people under a cloud regarding the pool scheme. “They think it is a dairy pool,” he said. “This is not so. There was a committee formed of 30 members by the representatives of the dairy factories present in Wellington last Thursday. These members put before Parliament a proposal. This went before the Government, and I feel sure will go through before Parliament dissolves. Later 9 members of the board will be appointed by this committee, and they take control of the dairy produce, but they cannot compel any factory to do as they bid without the Government’s sanction. “My idea o-f working it is this: That I the produce goes through the same channels as it does now, excepting that you cut out all the agents in New Zealand, which would mean a saving of £60,000 per annum, and that each of the many agents handling the produce at Home send a copy of the amount of produce handled and the price he has received for each shipment and the date it is sold, so that the producer at this end will see which is the best firm to consign to. I certainly think it woijld be very unwise to take the produce out of the hands of the agents at Home, but it is quite unnecessary to have agents here. “I.suggest these grades of butter, viz., superfine, first grade, second grade, and whey butter. To instruct the agents at Home they, would, all have to keep to the OTK» price. That is to say, other countries’ prices at the opening of the day. say warrant New Zealand prices being 200 s per hundred. That would be the price the agents at Home would be instructed to sell at. May be in two hours’ time you might make a reduction of 2s per hundred, or raise the price 2s per hundred, according to the position of the stocks on hand and supplies coming forward, but they must all sell at the one price specified. “The present day methods are these: That 90 per cent, of the agents handling the butter sell to the wholesale merchant, and the wholesale merchant comes along to these agents, asks the price of butter, and it is quoted, say at 200 s. This man offers 198 s, and the agent, not wanting to lose his customer (knowing he will go to some other agent and get a reduction) sells at a reduction of 2s, or probably more. The minute this is done the news soon spreads that there is a parcel of butter sold at 198 s. and. before the day is out, butter is down several shillings per hundred. This could be stopped by compelling each agent to sell the ’ different grades at the one price. “The control board will have it in their power that if this man does not handle the butter as they want he will not have the handling of the New Zealand produce. If they can convince the Government that it is detrimental to. the dairy industry, they will prohibit anyone from exporting to that firm. It would be wise for the dairy control Board to work in with the meat control board in the way of getting reductions •in freight, because they could talk to the shipping companies, having, as they have, so much freight to offer. The shipping company could not play one off against the other. Also in the matter of insurance, this could 20 through one big insurance company and the rates be considerably reduced. Also, in regard to cool storage, you could make a deal which would be very beneficial. Landing charges could be reduced considerably. With all this, and getting the benefit of the exchange, I think the saving would be enormous.

“I suggest the produce should not be shipped in big lots, as is now done, but regulated according to requirements of the markets. Speculation should be stopped, and only produce be allowed to go into the hands of those who are not speculators and agents who will sell it as New Zealand produce. At present the speculators buy a quantity of butter. and sell at a lower price than they bought at. Then when the market is glutted (as has always been the case with New Zealand produce), and when they have the market at the very bottom, they again buy in in big quantities, and when practically all the New Zealand produce is sold, up goes the price. They may lose £500,000 and make a million to the detriment of products at this end.

“There are a lot of people against forming any scheme that would benefit the dairy industry. An incident happened going down to the meeting last Wednesday. I met a gentleman from Rahotu, and I asked him if he knew what the scheme was that we were going down to discuss in Wellington. He said he did not, and nobody in the whole of New Zealand knew excepting Messrs. Morton. Goodfellow, and Brash. I told him I had seen in the paper a resolution passed and sent on to Mr. Massey and Mr. Wilfred, condemning the scheme, and he informed me that he was the mover of the resolution. Here is a man condemning a thing before he knows what he is condemning. “Several butter agents met the train along the line and tried to convince the representatives of the factories that if they passed and scheme it would be ruination to the dairy industry. For 40 years endeavors have been made to form something that would be of benefit to the producer. To-day they are in the same predicament as they were then. That is to say, we produce a good article, and put it up to look as attractive as it is appetising, then place it on board ship, and then lose all control of it. Does not the producer see that when Siberia comes into the market, which will be within the next few years, if they do not have some control over the selling of their produce, the dairy industry of New Zealand will be ruined? The position is getting worse i every year. Before the war with Siberia I in the market we netted the same price I for our produce as we did last year with . Siberia out of the market.

“I do not know any people who work so hard and get so little for their labors as the dairy farmer, simply because he is not organised, but this scheme, if it passes into legislation, which I feel sure it will, will make the dairy farmer help himself in spite of himself. We have banks, mercantile houses, and laborers organised, to enable them to sell their labor at a fair price, whereas the farmers of New Zealand are selling their labor for what they can get for it, for the reason that they lose control of their produce when it leaves New Zealand. I feel sure that if something of this kind is not undertaken the dairy farmer will I not be able to treat his land as he should do. Therefore that means !«?•

instead of more production. “I hope the farmers at this end will not take the slightest notice of what the dairy agents say, because they are sure to condemn the control board, it being against their interests, but I am certain that if the scheme is worked on the lines I suggest, with further suggestions to improve mine by some abler mind than my own, it will be the greatest lift for the producers that has ever come their way. They will then get a fair deal, which they are not now getting.”