DAIRY ZONING

Manawatu Standard, Volume LVII, Issue 204, 30 July 1937, Page 2

DAIRY ZONING

WOOD VILLE-PAHIATUA AREA. PLANS DISCUSSED. Following a conference at Paliiattia, yesterday, between the Executive Commission of Agriculture and directors of blitter companies, some progress was made under the zoning scheme to prevent overlapping in cream collection. AVhile the Commission did not give a decision on the point, it eventually settled down to discuss the position on the assumption that the New Zealand Farmers’ Dairy Union were to be zoned out of the AVairarapa. Finality, however, is expected to he reached at a further conference in three weeks’ time. Sir Francis Frazer presided and with him were Messrs G. A. Duncan and D. Jones. Messrs AA 7 . Hale and A. Linton, of the Dairy Board, were also present as associates. The following companies were represented:—Eketahuna, Konini, Mauriceville, Masterton, Featberton, Paliiatua, Daily Union and United (AVoodville). In opening the conference Sir Francis Frazer summarised the work that the Commission was doing, declaring that there was nothing political about it. Soihe there were who said it was a socialistic effort, but that was not so. From figures supplied by the Transport Department it was shown that a quarter of a million pounds was being frittered away by uneconomic collection services in two districts alone. A great deal of the competition for supply was undermining the co-operative nature of the industry and leading to other alleged regrettable practices. Part of the work of the Commission was 'to rationalise the industry, and two members of the Dairy Board were associated with the Commission in its work. Sir Francis asked that directors look upon the Commission as part of f the industry and desirous of helping. The Commission had wide powers which it could exercise, but preferred to work in the manner in which it was doing, namely, harmoniously and in consultation with the directors. The chairman spoke of the absurdity of overlapping and the desire to eliminate it as much as possible. He spoke also of the interim scheme adopted in the Manawatu whereby suppliers were given the choice of two factories. However, in the AVairarapa it might be found possible to arrive at a more definite zoning scheme and the Commission would be glad to hear the various viewpoints. He stressed the fact that all companies had to be truly co-opera-tive, and that could not be attained until all suppliers were shareholders. A company with a large number of “dry” shareholders was semi-proprie-tary. The Commission had had a preliminary meeting with directors of the Eketahuna company and would not allot it an exclusive zone until it became truly co-operative MAN AAV AT U BOUNDARY.

Sir Francis Frazer stressed the need for a determination of a boundary between Manawatu and AVairarapa districts or, in other words, the line to be drawn between the United Company (Woodville) and the Dairy Union (Palmerston North). Mr Harding (AVoodville) said United’s northern boundary was fixed but there had been continual collecting through the Gorge arid over the hill. United contended that no Manawatu lorry should enter the Wairarapa. A more specific limit for the Dairy Union would be the caretaker’s cottage at the Gorge and the summit of the range on the Pahiatua . Hill Itoad (Paluatua Track). In any zoning proposal, the collection of whey cream would have to be considered. His company did not want the whey product, and yet it had to bo carted out of the district. Mr H. G. Mills (Dairy Union) said his company collected cream for some 70 or 80 tons of butter in the AVairarapa, and gave not only a satisfactory service but also as good a payout as any other company in the Wairarapa. The Dairy Union was becoming truly co-operative, and suppliers were willing to take up shares. Wore the. 'Dairy Union confined to the top of the Hill Road it would not pay to run a lorry along that road, and to cease that service would be a hardship) to those suppliers. The Dairy. Union were asking permission to come through the Gorge and travel on one road only and back over the Pahiatua. Track. Mr J. G. Brechin said the Pahiatua company’s feeling was that there uas no justification for the Dairy Union coming into the Wairarapa. As far as his company was concerned, an arrangement with United could be achieved in respect of the collection of whey cream. Mr Alpass (Konini) blamed variation in the price of cheese and butter as the real cause of overlapping but now prices were fixed, there should not be the same incentive for factories to compete. He agreed with all suppliers being shareholders. As regards the collection of whey cream, Konini lorries would be prepared to collect what was offering and cart it to a fixed point for Pahiatua Company. . , , Mr Brechin said his directors would he pleased to accept the Konini offer and pay *d per lb for the service. PIONEERED THE INDUSTRY. Mr R. H. Stallard (Dairy Union) pointed out that his company had pioneered the industry and, but for the establishment of the other factories since the Dairy Union would have been the largest company m the district, .suppliers were very desirous of remaining with the company and the run was a round one and very economic, The Dairy Union would not relinquish it unless forced to. . , , , Sir Francis Frazer pointed out that a reasonable collection route for a company must be considered, and m arranging a boundary it might always be wise to stick to geographical fe Mr r< Mills said the road the Dairy Union desired to work was the Bal-lance-Gorge road, a direct connecting link between the Gorge and Pahia.tua Track. On that road the Dairy Union bad 12 suppliers and other companies five, so that his company would stand to gain five suppliers but would be losing eleven suppliers on side-roads. Were the company stopped at the top of the track, it would be uneconomical to pick up anv supply on the Palmerston North side of the track, and thosefarmere would be side-tracked. The Dairy Union stood to lose between 10.000 and 12.0001 b of fat by their proBrechin pointed out that the Dairy Union travelled 37 miles to get the Ballance cream, whereas his company need only go seven miles for the same supply. Mr Mills: But anv company which can get a full load for 37 miles should be satisfied. QUESTION OF PAY-OUT. When the chairman asked which companies made the best pay-out, those in Manawatu or those in the Bush district, there was a difference of opinion. Mr Brechin said some dairy companies on the Manawatu side were not in the habit of publishing their statistics as companies on the Bush side did He assured Sir Francis that the nav-outs were equal to Manawatu companies; with perhaps Shannon and revin as exceptions. The policy of the Bush dairy companies was to

build up reserves to a greater extent possibly, than they did in the Manawatu, but nevertheless pay-outs were better than those of the Dairy Union.

Mr Mills disagreed with Mr Brechin. The Manawatu pay-outs were decidedly better, he contended. Sir Francis Frazer pointed out that this year there would be standardised balance-sheets and then the industry would be able to see for itself. He would agree that the supply was not so scattered in. the Manawatu as around Pahiatua, and so Manawatu collection costs were fairly light. TENTATIVE PLAN.

The Commission gave consideration to the matter during the luncheon adjournment, and on resuming the chairman asked the meeting to discuss the problem on the assumption that the Dairy Union were zoned out of the Wairarapa. It semed that the whole of the Wairarapa could be divided into three sections. The first would affect Pahiatua and Konini, with United zoned out. The second involved the Mauriceville, Eketaliuna and Masterton companies. The third was Featherston’s territory. Mr Mills said the loss would be a serious one to the Dairy Union, and at the same time Pahiatua and Konini would get an increase in output which these companies did not want. However, if the supply was to be lost to the Dairy Union lie presumed the company would be compensated. Mr Brechin corrected Mr Mills. He had said Pahiatua did not want to increase its supply at the expense ol Konini. .

Sir Francis: Or any other Wairarapa company. . Mr Duncan, emphasising the interests of suppliers, said the taking of supply from the 12 farmers served by the Dairy Union might detrimentally affect the interests of all the other farmers in the Pahiatua-Ivonini area. A few suppliers might gain to the detriment of all the rest. Sir Francis: The Commission can t consider the interests of just a few suppliers who might gain something by going to one company. Mr Mills: I wish you would apply that rule in the Manawatu. Sir Francis: We may do it in time. Asked if the Dairy Union had canvassed the Ballance road for supply. Mr Mills said the company had done so, but only after the Pahiatua company had gone around. Pahiatua delegates, however, denied having canvassed as alleged. In respect of United’s territory. Sir Francis Frazer asked if the Manawatu River would be satisfactory as the southern boundary, hut Mr Harding pointed out that there was United territory on the southern side of the Manawatu. He suggested that the boundary should be from the coast along the'rabbit line to the Manawatu River at Hopelands, then along the river to where the power line crosses at the Devil’s Elbow on the Ballance Road.

The Pahiatua delegates were in agreement with the Commission’s suggestion and it was adopted. United will collect Pahiatua’s whey and cream and dump it at Ngawapunia. Mr Brechin thought the Pahiatua and Konini companies could come to an agreement as to rounds as soon as Mauriceville’s northern line was fixed.

Air Alpass thought similarly. Mr G. F. Hoggard also thought a plan could be submitted satisfactory to both companies so soon as the other companies were cut out. Speaking for Fketahuna, Air AV. Simpson thought the next boundary line should he at Hamua. but Air Brechin pointed out that that wcrald bo three miles from the Konini factory. Mauriceville, Konini and Eketaliuna delegates went into details of supply and tonnage affected should a line be drawn at Aloss’s Rond, between Newman and Nireaba, and it soon became apparent that the difficulties bristled. Finally the chairman suggested that the easiest way to overcome the problem would he for the Eketaliuna, Alauriceville and Afasterton companies to amalgamate and then arrive at a boundary with Konini. Such a step should also help in solving the overlapping problem for the Featlierston factory and enable it to get a clear-cut area. The idea, was accepted as worth exploring and a sub-committee was set up to discuss the pros and cons. In three weeks’ time they will report to a further meeting at Pahiatua, when the Konini and Pahiatua companies will be expected, as well, to announce the arrangements they have come to with each other. The Featlierston representatives are to he invited to the meeting.