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Dairy Farmers' Co-operative Milk Supply Association In the following chapter on supply the Commission reviews in full the necessity for setting up a responsible body among producers to organize supply and safeguard the interests of producers as a whole. In this chapter on organization it is necessary, however, to outline the proposals as they affect organization of a Dairy Farmers' Co-operative Milk Supply Association. The Dairy Farmers' Co-operative Milk Supply Association will in each area be a contractual body representing all producers and acting on behalf of all producers, but not necessarily over-riding the rights of its members as shareholders in co-operative companies or as members of subsidiary groups such as dairy factories or present, processing companies. For instance, in Wellington, in the case ol the Rahui Suppliers' Association and of the suppliers to the Kuku-Manakau Dairy Factory and the Levin Dairy Factory, such suppliers must still be allowed to retain full rights as members of their respective cooperative companies, and the control over these respective factories would, not in any way or in any sense devolve on the Dairy Farmers' Co-operative Milk Supply Association. It should be the duty of the Dairy Farmers' Co-operative Milk Supply Association to co-operate fully with the local dairy factory of which any intending member of the Dairy Farmers' Co-operative Milk Supply Association is an existing member. Such a relationship between dairy-industry interests and Dairy Farmers' Cooperative Milk Supply Association interests is essential in order to ensure harmony and smooth working between the dairy industry and the liquid-milk industry. In no case should the Dairy Farmers' Co-operative Milk Supply Association be given rights which will cause its interests to conflict with the interests of the dairy industry. Consequently, although all city-milk suppliers would be members of their respective supply associations, this would be for the purpose of organization only and should not in any way affect their existing rights as shareholders of a dairy factory or other similar body. Constitution The Commission recommends that it be one of the first duties of the Central Authority to organize in the Auckland and Christchurch areas a Dairy Farmers' Co-operative Milk Supply Association. It is desirable that such associations be set up with the full approval of all liquid-milk suppliers in those particular areas, and the executive authority of the association should comprise suppliers properly elected on a democratic basis by the members as a whole. It shall be the responsibility of the Central Authority to supervise the constitution, functions, and powers of such associations and to determine the extent to which the powers of the present organizations in Dunedin and Wellington should rightly be extended or modified. Functions (1) All liquid-milk suppliers who have been duly licensed by the Department of Agriculture to supply town milk should be eligible to be members of the Dairy Farmers' Co-operative Milk Supply Association, and it should be a condition of their license to supply liquid milk that they shall be members of the Dairy Farmers' Co-operative Milk Supply Association. (2) The Dairy Farmers' Co-operative Milk Supply Association should accept applications for membership from suppliers who have been duly licensed by the Department of Agriculture, and it should not be permissible for the Supply Association to refuse membership to any applicant except with the approval of the Central Authority. Such approval should only be exercised by the Central Authority when the Supply Association can show that the total of all quotas allotted for milk-supply indicates at least, 10 per cent, surplus over the anticipated demand for the coming winter. (3) The Dairy Farmers' Co-operative Milk Supply Association should, at its discretion, have power to issue " winter " licenses to future applicants for membership whose " winter " production, comprising the six months of lowest production, is estimated at, say, less than 40 per cent, of their total annual production. Such members would supply the whole of their milk to a factory during the summer, and would only supply to the city the allotted quota of winter milk during the late autumn and winter. (4) The Dairy Farmers' Co-operative Milk Supply Association should be given the exclusive rightto purchase milk from members of the Association. (5) The Dairy Farmers' Co-operative Milk Supply Association should be given the exclusive right, to supply milk and cream to the city area, and milk or cream for any other milk products for which the Central Authority considers that priority of supply is necessary in the interests of disposal of surplus milk. (6) On the Ist August, or on such date as may be decided by the Central Authority, the Dairy Farmers' Co-operative Milk Supply Association should obtain from the vending companies and private vendors, through the offices of the Milk Council, an estimate of their milk requirements for the following winter. It should then be the duty of the Supply Association to organize a sufficient number of suppliers to ensure at least 10 per cent, supply in excess of that estimated demand. It should be the responsibility of the Central Authority to determine the penalties, if any, to be arranged for short supply or short estimates. (7) On the incorporation of a Dairy Farmers' Co-operative Milk Supply Association for any area all contracts made thereafter for the supply of milk or cream to that area should be made only with or through such Association. All contracts actually in operation should continue only for so long a period as may be necessary to enable the parties thereto to discharge their legal obligations under such contracts. (8) All payments for milk should be made to the Dairy Farmers' Co-operative Milk Supply Association, which should in turn arrange the payment to producers on the quota rates finally determined by the Central Authority. (9) The Dairy Farmers' Co-operative Milk Supply Association should be responsible for and should organize the collection of all milk delivered to the metropolitan area. The Association should ensure, as far as possible, that all necessary steps are taken to maintain an adequately low temperature of the milk during the whole process of collection. (10) The Dairy Farmers' Co-operative Milk Supply Association should, in co-operation with the Milk Council, organize the setting-up of a laboratory for the purpose-of the daily testing of all milk for quality (ten-day composite test for butterfat content), except in those cases where adequate and approved laboratory facilities already exist on the premises of treating and distributing houses.

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