MARKETING BUTTER.

Auckland Star, Volume LVIII, Issue 90, 18 April 1927, Page 4

MARKETING BUTTER.

HOLDING FOR A RISE. LOXDOX COMMENTS. (From our own Correspoiidvul.) LONDON, Manh 4. Mr. Robert Locan. ihaiiman of the -National Moit-.iu-e an.l Aeency Company, 111 iidrhcpsinK shareholders in London on Jlaitli 2. 1 efei-red to the effect ot stipplies of New Zealand butter hel.l up in London in Septemlicr and October last. ■"This, ■' ho said, "was responsible for the fall 111 values which took place then. The Mil w.is undoubtedly broujiht about through ninny shippers of hut'.rr li.ivine rabled instructions t<. withhold their stocks lioni sale and place them ill cold storaKC—presumably expecting the higher prices which had ruled in the autumn months of the previous two and throe years to recur. The cold storing of such a lai-KC quantity of butter, however, defented tlic objcft in view. Naturally, buyers knew of the existence of those stocks, and consequently adopted a hand-to-mouth policy of buyinsr. with the result that month after month this heavy stock became an increasing incubus on the market." Mr. H. C. Cameron (formerly produce ofheer in London tn the Now Zealand Government) expressed his \iows 10 the meetinu of the National M..rtpnrr Company .»i the action of the New Zealand Dairy Hoard. Mr. Cameron said he had been closely associated with the dairying industry in the Dominion from its ' inception, alike as a milk supplier and secretary to the dairy factories in the Dominion, as a distributor of New Zealand dairy produce in this country, and as representative of the producers' interests here when Produce Commissioner lor the New Zealand Government. From his many year's expericene of handling and distribution of New Zealand butler and cheese, he considered control essential, aim he hail repeatedly uruwl the necessity for it. so far as it affected regulation of shipments, control of distribution and stability 01 prices on the Knclixh market. "I was pleased when a board, representative ot the New Zealand producers' interests, was set up," continued Mr. Cameron. Absolute Control Necessary. "That board has been empowered with absolute control. This, I believe to be necessary, as without it tlie board might be impotent to cary out its functions, but I believe such preat power must not be used by it except in the case of extreme urgency. But what do we lind? Instead 01 performing its functions iu a fair and reasonable manner—using tact in introducing a new system—the board autocratically issues instructions how the NewZealand dairy industry is to be conducted in future. While I consider it desirable that a market value should be a"reed upon by the board, after consultation with representatives of thu produce trade, at which the butter and cheese should be sold, the board lias been fixing a hard and fast price, and then suddenly and unexpectedly ishangiug it. The week before last the board raised the price of butter 2/ per cwt, although the state of the market did not warrant that bein? done and last week reduced it by B'. By sucli action I consider the board ha.s creatly handicapped the New Zealand trade It has antagonised the retail distributing houses, and has reduced the demand for New Zealand butter throughout the country very considerably. "The- board also refuses to allow those dairy factories in the Dominion, who formerly had been sellers there, but who are now compelled to ship on consignment throuKli the board, to select their own agents in this country for the sale of their produce, even thouph such agents may meet with the approval of the board as satisfactory for the purpose. They must place it in the hands of any agent 'chosen by the board.

■ Unfair to Producers. "Is that fair to the producers? The board further refuses to permit factories that, l)u push and advertisement by former agents of their brands, command a premium in price for their output, to pet any advantaee from that benefit. They must share the premium so obtained with lactones whose produce is of less value. By thjs restriction, emulation amongst dairy factories is destroyed, and, consequently, improvement in quality of Xew Zealand dairy produce is retarded. At the sumo time, the nftents here have no incentive to compete against each other for best results on holi.ilf of their clients I here is evidently a treat lac k of real business experience in the management of the Control 80.-ud in this country. I trust, therefore, that strong representations may be made in the proper quarter to have some change nude in the policy or the Control Board, that may lead to the more amicable and satisfactory working of a system that, if conducted on sound lines, would, in my opinion, he of considerable value to the dairy industry of New Zealand.