TRADE WITH THE EAST

Ashburton Guardian, Volume 53, Issue 133, 17 March 1933, Page 7

TRADE WITH THE EAST

DOMINION'S OPPORTUNITY. READY MARKET EXISTING. The possibilities existing in the East for now markets for Dominion produce were indicated recently by Ml A. J. Sinclair (secretary-manager of the Te Awamutu Co-operative Dairy Company, Limited) in an address to members of the Auckland Creditmen's Club. A clear indication had been given recently that the diversion of 10,000 tons of Dominion butter to other markets would be greatly appreciated in the United Kingdom, Mr Sinclair said. Previously, New Zealand producers had found comfort in the thought that any surplus could be absorbed into the United Kingdom at a satisfactory price, and a section even considered it would be unpatriotic to send Dominion goods elsewhere, but the old United Kingdom policy of free trade, under which Great Britain became the dumping ground for the surplus from any country, had gone. East the Only Market. New Zealand had never made a successful attempt to develop other markets, although a state of over-produc-tion had now been reached. The only market offering was in the East- An attempt Avas made some time ago by one concern, but it failed after a promising beginning, as the task was too big for any one industry alone. A combination of all exporters was necessary for New Zealand to enter the Eastern market successfully. Australia, however, was endeavouring to capture a large proportion of the Eastern trade, and a show boat, a floating exhibition of Australian produce, was being prepared to go to Singapore next month. Australian producers were receiving strong support from the Federal Government, and in the last three years the Commonwealth had increased her trade withjthe East by 50 per cent., last year's total amounting to goods worth £21,000,000. Comparison Withi Australia. Goods valued at £40,000,000 were imported by Hong Kong in 1931, and Australia accounted for £340,000,000, while the Dominion's share was only £14,000. * In the same year Australia sent 1,000,0001 bof frozen meat to Hong Kong, and the Dominion sent none. China's imports in 1931 were £170,000,000, of which £3,340,000 was for Australian goods, while only £17,000 came to New Zealand. Such figures showed beyond doubt that a great market existed in the East. Shipping difficulties as far as New Zealand was concerned could be overcome, three companies being willing to provide a .28 days' service between the Dominion and the East. There was an urgent need for "a new trading organisation in the Dominion, a private enterprise on the lines of a public company, with dairy companies and other concerns as shareholders. Trade representatives should be appointed, and expert supervision exercised in grading and packing. Trading capital need not be large, as most of the business could- be done on consignment. Given the support of the Government and various commercial, organisations, the undertaking could quickly develop a remunerative trade with the East.