DAIRY CONTROL.

Taranaki Daily News, 3 October 1922, Page 8

DAIRY CONTROL.

THE PROPOSED SCHEME. THE POINTS EXPLAINED. r ' CHAIRMAN OF BOARD INTERVIEWED. (By Wire—Special Reporter.) Wellington, Last Night. To-day I met Mr. W. Grounds, of Hokianga, who has been appointed chairman of the committee having in hand the drafting of the dairy control scheme. He graciously accorded me an interview. He said: — “It is apparent that some confusion of thought exists regarding the proposals. This may result in the promotion of antagonism to a scheme which is designed in the interests of producers and the country generally. “Briefly, the idea is to set up a Dairy Control Board along the same lines as the Meat Control Board. A committee was set up at the Wellington Conference, consisting of 30 members, 20 representing the North Island and 20 the South Island, which, it is proposed, shall be a permanent dairy council, elected annually by producers on a provincial and sub-provincial basis, harmonised a<s far as possible with butter-fat output. This council will elect a control board of nine members—six representing the North Island and three the South Island, three retiring each year, but being eligible for re-election. The establishment of this council, to whom the Control Board can refer any important development. ?6 considered a valuable departure from previous proposals, maintaining as it does a living connection between the producer and the Control Board. NO DISTURBING OF PRESENT DISTRIBUTING CHANNELS. “As for the objects and aims of the proposed control, there is no intention to disturb the present means of distribution this year, or thereafter, so long as the board is satisfied that the interests of producers are being consulted and conserved. I don’t mean for*a moment to suggest that there is any intention of interfering with the legitimate course of trade or the sway of the markets, or to create artificial conditions. What we are concerned about is that producers obtain full market value for their produce. and are not made the victims of forced sales by speculators caught with more produce than they can profitably liquidate, as has happened in the past. COURSE OF THE MARKETS. “There is another important point that • will be watched by the Control Board. It is the course of the markets. At present things happen at Home of which I the producers out here know nothing. We have had instances of it lately. Buyers in New Zealand have had possession of information enabling them to scour the country and buy up supplies, and a short time afterwards the market ha<s risen and the suppliers have found, that they have lost thousands of pounds. Mind you, I don’t blame the produce purchasing firms for this. It is perfectly legitimate business. I blame ourselves for allowing a. system that permits of our being caught at such a disadvantage. Whilst every factory company is going on its own so lons will producers be ignorant of the state of the markets overseas and be likely to lose. No one company can afford to maintain an intelligence department at Home and abroad, but actino together it is ouite easy to have reliable agents in London and elsewhere who can keen us in touch with the variations of the markets and be able to immediately advise us.” THE INSIDE RUNNING. “But have not the dairy companies their own representative in London at the present time?” queried the Pressman. “Yes, truly enough.” replied Mr. Grounds. “The National Dairy Association have had their representative there for years, but he has not been able to get in the inside running so far as the ! markets are concerned. And that is ! easilv understood bv those, like mvself.

who know from first hand experience the working of the produce trade at Home. That is why we must have control ot all our own produce. Wo are then in a different position entirely from what we are now. and we must be consulted. The producers will then be able to rely upon getting the full market value for their produce.” ADVERTISING OUR PRODUCE.

Mr. Grounds proceeded to discuss the question of advertising New Zealand butter and cheese, and said that both stood in high favor at Home. No country stood higher in the estimation of the English people than New Zealand. They should capitalise this goodwill bv telling the people of England all about the merits of their dairy products, and keep’ on telling them in a striking and convincing way. To be effective the advertising must be done on a large and comprehensive scale. At present it was impossible to do this, for obvious reasons, but it was'a simple matter for the producers united and directed by a control board as proposed.” FUTURE COMPETITION. “Depend upon it.” continued Mr • Grounds, “we shall have to be up and I doing in the near future ’when the Eu.roi pean and other countries start sending i their butter and cheese into England i again. IVe have easy access now, but it i will become much harder as ! build up their herds, increase their proI duction, and improve their methods and I organisation. We must create a connection for our produce by advertising it m every way. and also seeing that it reach- ! e-4 the hands of consumers as the New ; Zeailand article, which cannot be ensured under the present system, or lack of it.” THE FREIGHT QUESTION. Again, said Mr. Grounds, the Control Board can act effectively in respect I of freights. The Meat Board had shown the value of combination when it came to bargaining with the shipping companies for freights, and if it had done nothing else it had justified its existence by the huge saving it had already effected i in th.is connection. It might have been i possible to get a. reduction even if the ’ Meat Board had not been in existence, but from his own knowledge he felt sure the reductions would never have been so substantial as bad been granted. Working in with the Meat Board on this question, he was certain considerq.blp-

savings could be effected on behalf of the dairymen, the hardest worked men in the Dominion. The present freights were ,very burdensome, and they should come down materially. INVESTIGATING OTHER MARKETS. Another matter referred to Mr. Grounds was the investigation of new markets. He was satisfied profitable outlets could be found for our produce in the United States, Ca-nada, France and the East. The necessary investigation, however, could not be undertaken by any single company, but it would be a simple matter for the Board of Control. The whole foundation of their new system, indeed, would be the establishment of an efficient intelligence department, while it would keep them in touch with vital matters of concern to the producers. THE TARANAKI OPPOSITION. The Pressman mentioned that there was a good deal of opposition to the scheme in North Taranaki. “That is simply because the producers there do not understand it,” declared Mr. Grounds. “I feel quite sure that when they do their opposition will melt .away, and’ they will see that their interests are intimately bound up with the i successful establishment of the control of their own produce. At present they have nothing of the kind after the produce leaves their factories. We propose to see that everything is being done to land the produce in England in good order and at the cheapest freight rates, and then that in the distribution and marketing the methods followed leave nothing to be desired. We don’t want to interfere with the present distributing houses, so long as they are doing the best possible with the produce.

: “The efficient distributing house has nothing to fear from us. Rather will it us. Indeed, some of the best firms favor the scheme, for the reason that it will give protection to them in carrying on their legitimate business from the speculators operating to-day and away to-morrow, who may buy heavily and sell the produce to save themselves without regard to the effect their actions might, have on the legitimate and regular sale of the New Zealand article. Naturally, the speculators will resist the proposals, for if given effect to, their innings, so far as New Zealand produce is concerned, will be closed.” PRODUCERS HAVE NOTHING TO FEAR. Mr. Grounds eaid the producers had nothing whatever to fear. Those who were at the head of the movement were animated by but one desire —to put the industry on a better footing, to enable producers to get the full benefit of the markets in England and elsewhere, to build up the demand at Home by consistent and efficient advertising, tp carefully watch distribution at Home in the interests of their own producers, to get cheaper steamer rates, and to remedy troubles and improve methods at this end. If they did not put their house in order to meet the new conditions they might suffer, and suffer severely, in the ■ very near future. They had the selectI ing of their own representatives, whom | they could, therefore, change when they thought fit. So the working of the new system would be in their own hands entirely. KEEP AN OPEN MIND. “Finally,” said Mr. Grounds, “ask your people to keep an open mind until they have the proposals explained to them, and not allow themselves to be led away by statements that may be inspired or be the result of an honest misapprehension of the position. It is bad enough to contend with the opposition of interested parties. We don’t want our own people to be led astray and to attack what is being done to protect and advance their own interests.” Mr. Grounds, by the way, belongs to Broadwood, Hokianga, and is held in the highest regard by all who have come in contact with him. He never sought the chairmanship of the Control Committee; in fact, he would have preferred someone else had taken it, but when the producers unanimously asked him to head

the movement he put his own wishes j and interests aside, and is throwing himself into the scheme heart and soul. He is a conciliatory, kindly and yet striking personality, who has the knack ol effectively handling men and a meeting. This retiring, thoughtful man is capable of big things, and the dairymen of Taranaki have only to meet him to implicit'ly trust him. The scheme on which he lis engaged is a big one, and it may ; confidently be said that it will not be : the fault of Mr. Grounds if it is not sucj cessfully established.