DAIRY CONTROL.

Taranaki Daily News, 24 October 1922, Page 7

DAIRY CONTROL.

ON THE DEFENSIVE. ‘•Dairyman” (Stratford) writes: — H. A. Hunt is anxious that I should reveal my identity. I regret J. am unable to do so, for some of us are unable, for reasons which you, Mr. Editor, will appreciate, to say in public what we would like. But my identity id of small moment compared with my statements. Not the man, but what the man is, is that which should count. Mr. Hunt heaves a few bricks at some of our dairy leaders over their connection with the Smart Road freezing works. He forgets that other concerns besides the farmers’ have likewise suffered in the landslide that has occurred recently. But you don’t hear so much about them —they have not a lot of distrustful, ungrateful and vociferous shareholders to spread the bad tidings throughout the land. The chief reason why the farmers’ concerns are in a bad way is because they have extracted from them the last farthing and starved them for finance. They never -would allow reserves to be -built up, like the wiser business men of the towns provide. They must have everything. Take the dairy companies—they pay out everything, work on the bank, and never think of putting money aside for a rainy day. They are now (being taught a well deserved lesson. Co-operation has dpne a great deal for dairy farmers. Without it the industry would never have been where it is, but producers must be prepared to do more to establish the system on sound lines than in the past. To talk, as Mr. Hunt does, of putting dairymen into the bankruptcy court if the pool scheme passes is pure hysteria. I will say this, that unless they organise and look after their own interests, instead of placing them entirely in the hands of others, as they are now doing, they may quite easily be landed in that unpleasant place when competition on the English market becomes more vigorous, as assuredly it will in the near future. Things are changing, and will continue to change, and the producers should be prepared to hold themselves in readiness. A great deal of the opposition to the proposed control comes from interested parties, yet many of our people cannot see through it. They are told that the present leaders are a lot of “mugs/’ and certain unsuccessful works are pointed at as being the result of their ill-judgment and lack of capacity, but, I say, sweep away that kind of eye-wash, and examine the proposition on its merits. If you are not satisfied with the present men, elect others; it is in your own hands. But for goodness sake don’t allow your prejudices to blind you in a matter of such vital importance to you. Get the scheme going, with or without the compulsory section, define your liability, and provide for watching and organising your interests. Otherwise you may rue the day. and when it is too late — when you find that other countries’ products are being used on the English market to hammer down the prices of your own. It is not»a -personal matter, as men of little vision unfortunately are making it, but a broad, public one. Create your demand and good-will and markets.’ Don’t let them be exploited by outsiders, who may throw you over whenever it is convenient or pays to do so.

THE PROPOSALS CRITICISED. Mr. Willie J. Freeth, Pukearuhe, writes:— Having just returned from Wellington after giving evidence against the Dairy Pool at the special committee meeting, 1 can tell my fellow dairy farmers that I am more than ever convinced that this Bill is not in the best interests of the small factories, and, once roped in by this Bill, you will never get another say. Up to the present there is no provision for electing the board—a very strange omission indeed—and I should like to seriously point out that, as far as Taranaki is concerned, all voting up to the present, and all business transactions in the past, have been conducted on the output basis. Well, if this system is still used, I should like to point out that there are about half a dozen of the largest factories which can outvote the whole of the rest of Taranaki factories put together, and you also want to remember that it is the men at the head of these factories who are running this pool. Another grave aspect is that we are to be dominated by the Meat Board. A -special provision stipulates that the dairy people cannot conclude a contract with the shipping people only with the consent of the Meat Board. The interesting question naturally arises, if there came a shortage of space, whose stuff would go, do you think? The meat, or the butter and cheese? Then another point has cropped up. The board is going to regulate shipping. Say there is a glut, and some butter and cheese «re to be held up, the question arises, whose goods are to be held up. And then I have heard the most heated arguments as to whether we are all going to get an average price or get the price our stuff sells for. In fact, we are just drifting along, and you will wake up one fine morning and find the politicians have done the trick. The meat, financed by the Gov-» eminent, has sailed, our butter and cheese paying storage, and farmers waiting and longing for the 20th. lam also satisfied that the elastic finance that has been such a great boon in the past will vanish, and, gentlemen of the dairy world, don’t forget you won’t be able to sell in New Zealand, or, in fact, you won’t be able to do anything. It will be done for you, and. right or wrong, you will have to take the con- 1 sequenc'**. Tn conclusion, I should like to ask Mr. Morton: Was it sound business keeping the Inglewood Bacon Co. out of the bacon pool? If so, why does he want to drive the successful dairy companies in North Taranaki into the dairy pool ?

SOME OBSERVATIONS ON RECENT CRITICISM. Mr. John Grounds, chairman of the Dairy Control committee, writes: —It has been suggested that the Committee r.«ar ’b* hoping to secure the Government financial backing. This, we should .have welcomed; but seeing difficulties in the way. we recognise that the industry, if given control, can arrange its own finances in a manner that will be as advantageous to all factories, small or large, as the present system. This should be emphasised, that the financial stability of the industry and its component parts will not be impaired to the remotest degree. All connected with the industry recognise that much requires to be done regarding shipping, and that means must he found to prevent the alternate gluts and periods of scarcity on

the London market, which are the result of our lack of system. A representative of a prominent London firm has said: “If you can give a steady and even supply similar to Denmark you can secure an even price with them.” Yet over a period of six months during last season the average difference btween New Zealand and Danish prices was 36s per cwt., the greatest difference being registered on January 16, when it amounted to 55s per cwt., or 6d per lb, this notwithstanding that all London agents assert that New Zealand butter is now equal, if not superior, to Danish. On this basis the New Zealand dairy farmer should have received fully £1,000,000 more for his produce last year than he was paid, which amount, had it been spread throughout the country, would have done much to mitigate the financial troubles experienced during that time. None have yet questioned the need of a sound intelligence department to collect information, and supply to the factories. Assuming this to be done without control], what is the result ? The information is obtained and is distributed to factories that a certain market gives good promise. Immediately a rush sets in to supply it, with the result that it is overdone and the promised good market becomes a bad one, your information is thus stultified. The soundness of your intelligence department is then questioned by the unthinking and becomes discredited, not be it noted, ’because its advice was unsound, but because it had not the power to control the supply that the market sought. Thus it comes back unerringly that seeking an intelligence department without a Control Board is chasing a will o’ the wisp, seeing that your information brings into play forces that stultify yous efforts, and must continue to do so.

Consider also the question of advertising, the need of ■which, to open up new markets, is recognised by all Widespread advertising may be only a waste of effort and money. Systematic advertising involves a readiness to immediately supply requirements as a demand is created, which supply must be steady and continuous, and in such volume as the new market requires. Factories which have sought to develop business in Manchester and other new centres have discovered the difficulties by which they are beset. Much has been made by the opposition of the proposed levy. This is required to secure the necessary information to direct our supplies into the most profitable channels, advertise and develop new markets etc. The whole of the expenses of the Board would be taken from this fund. It is probable that one half of the maximum levy suggested —one-eighth penny on but•ter and one-sixteenth penny on cheese — would be ample. This would mean some £40,000 per annum. As the agents at this end are at the present time taking about £BO,OOO as their share of the 2| per cent, commission we have to pay on our sales, it will be seen there would be an immediate saving of some £40,000 per annum to the industry with all the development and security work thrown in.

AU the working expenses of the Control Board would be taken from this fund. If those who are concentrating attention upon Clause 15 would read it as it should be read—“ All moneys received by the Board in respect of the sale of dairy produce (or by levy) or otherwise howsoever” etc., they will see the need of the clause to provide for the effective working of the Act. The urgency for the passing of the Bill lies in the fact that we now hold a strong position on the London Market. We are now supplying 53 per cent, of its imported butter as against 20 per cent, in 1913. When Siberia, Argentine and other exporting countries get again into their stride we shall bo subjected to fierce competition, which may be disastrous to this country if speculators are in a position to play one country against the other for their private gain. We believe this to be a vital point and no time should be lost. If the Bill were passed this week we should need to set to work immediately to prepare for next season’s output if the work is to be done efficiently. Now is the time to get it established; if we miss it we may never be able to regain the same opportunity. In an endeavour to confuse the issue many unpopular words have been used to stimulate opposition viz.—compulsion coercion, arbitrary etc., whereas there is no need and no desire to go beyond the word used in the title, Dairy Produce “Control.” The word “Control” implies a power to direct: in the words of the Act the Control “may as the Board determines be absolute or limited’' the fuller power can only be exercised with the consent of the Government. We have no desire to act arbitrarily. but as dairymen, we desire to place the industry upon a permanently better footing, ft can bp done and the way we suggest is the onlv possible way. We know that it conflicts with the interests of those who are engaged in the trade at this end, and can therefore understand their organised opposition to if; but the issue cannot be restrict"'! to the interests of a few. The - > Dominion both town and county' is vitally interested in the general well-being of the dairy i. ;lustry and to ail such the general provisions of the Act should commend themselves.