HOUSEWIVES MISLEAD.

Auckland Star, Volume LXI, Issue 262, 5 November 1930, Page 4

HOUSEWIVES MISLEAD.

EXPORT BUTTER TRADE.

MARKETING PROBLEMS.

BLENDERS , HUGE BUSINESS

Apropos of the inquiry at present-being conducted in London into the marketing of butter, Messrs. Joseph Nathan and Co. supply some interesting ihformation. They state as follows:— A large proportion of ~tlie butter trade in England—particularly lib and %lb pats—is done by the blenders. They use for their purpose a mixture of perhaps 10 to 20 per cent of New Zealand or Australian butter, and 80 per cent of Siberian, Latvian'. Argentine' and other cheap foreign butter. This is wrapped in labels which would suggest to the housewife that she is fcuying pure- English farmhouse butter, and in many instances the blenders secure an average of 3d per lb more than, the average market value of the constituents, foreign or otherwise, used in the butter. We are not suggesting for one moment that the blenders deliberately go out to -mislead the tiurcliasers. Some years ago the New Zealand Cooperative Dairy Co., Ltd., commenced a system of patting New Zealand butter, and shortly afterwards we did the same. Soon after we started this business the blenders became very .antagonistic towards us, and indeed refused to trade with" us any further. This fact did not trouble us very much, because our sales of pats have increased to such an extent that we are independent of any blenders' business. ' In February last a movement waa set on foot, which had the backing of the New Zealand, Australian and Irish Free 731 ate Dairy Boards and ourselves, with the object of getting a bill through the House of Parliament making it obligatory that all butter sold in pats should bear the name of the country of origin. Thus, Australian butter would have to bear .the wards, "Choicest Australian," New Zea-. land "Choicest New Zealand," etc., etc. A good dekl of work was put into this matter, but the blenders' large, influence nullified the efforts at the moment. To give you an idea how the matter was worked up, we attach hereto * a "pull'' of a letter written to the "Times," bearing the signatures of various well-known people connected with economics in, England. The London "Times" also took the matter up in a leading article. . A few days ago we received cable advice from our principals, Messrs. Trengrouse and Nathan, that a committee had been set up, and would take evidence in connection with the marketing of butter. We were the only importers to i*ive evidence on this question, as the other importers of New Zealand butter, both as individuals and as an association, feared that if they did so they would offend the blenders, who are large purchasters of their factories' outputs. Why Danish Leads. We give you herewith a copy of the cable wo received from London on this subject. Our cable was really sent with a view to getting some idea as to the cause of the disparity in the price of Danish and New Zealand butter. London's reply reads as follows: — , ' , "Are satisfied fundamental cause is due Danish butter being consistently sold designated Danish butter in definite market, thus creating valuable consumer demand and goodwill, whilst New Zealand butter still largely sold as fresh mild creamesy or similar classification, without designation country of origin, which prevents creation of any regular consumer demand and goodwill for-New Zealand butter, as exists _ for _ Danish. Only remedy in our opinion. lies in ■successful application butter marking order, which hearing commences Tuesday. We are giving evidence on these lines. Regret other importers, individually and as an association, refuse to support application, for fear antagonising blenders, who have ceased trade with' us because we support application." The Only Remedy. Put shortly, this cable means that as Danish butter is sold definitely as Danish butter in special markets, a goodwill has been created for it, and it ip asked for as Danish butter. Except for the pat trade, referred to, New Zealand butter is sold generally as mild creamery butter, without the country of origin being specified. Owing to its good quality, it commands & good price, but retailor profits 'by this —not the factory. Our opinion is that the only remedy for this is to have the Act passed providing that all butter should be sold under the name of the country of origin. If this is done we feel sure that the - quality of New Zealand butter will command a price more in keeping with its merits. Under the present system there is no possibility of testing this out. _ . .