POPULAR PRICE.

Auckland Star, Volume LXVI, Issue 235, 4 October 1935, Page 8

POPULAR PRICE.

NEW ZEALAND BUTTER FOR ENGLISH CONSUMER. LONDON DISTRIBUTOR'S VIEW The importance of the retail price of New Zealand butter in the English markets remaining at a level which will not interfere with its popularity was stressed by Mr. Arthur Cough, of London, who arrived by the Mariposa this morning, and who has had wide experience in the marketing of the primary products of the countries of the Empire. Mr. Cough is general manager of the Overseas Farmers' Co-operative federations, Limited, whose headquarters are in Fenchurch Avenue, London.

"The present comparatively high pricc of New Zealand butter must be very satisfactory to the dairy farmers, and while the price between now and December may go even higher one hopes that speculators will not pre=s the position to such a high level that it will interfere with the popular retail pricey in Great Britain," said Mr. Gough. "I understand that the present rate of production in New Zealand shows a decrease in comparison with the last season. If there is a comparative shortage then satisfactory prices may be forthcoming throughout the season. On the other hand, if the total production in Australia and New Zealand reaches anything like the figures of last season, then the London realisation must fall back. Last year Great Britain handled the biggest tonnage ever, but that was brought about only by the popular retail price. The latter resulted in an increase in consumption, and it is now over 25Lb per head of population. You will realise what that means by the fact that it means approximately half a pound per week per head of the population. This result was not brought about by filching the margarine market to the same proportion, as it is still 71b to 81b per head of population." Selling On Consignment.

itr. Gough said that he strongly favoured the policy of selling on consignment. While 'the "quick quitters" or c.i.f. sellers might come into their own occasionally, their form of selling interfered considerably with the normal tendency of the markets and did not pay in the long run. The Overseas Farmers' Co-operative i Federations, Limited, was a company formed by the primary producers of Australia and South Africa in 1920, said Mr. Gough. Its turnover in the first year was £20,000 and it rose rapidly till in the flush seasons it was £10,000.000. At the present time it was £7,000.000, but was handling a greater tonnage than in the flush the disparity in value being due to lesser prices. There were no individual shareholders in the company, it was purely a co-operative concern. The policy was maintained by boards in Australia and South Africa. Shippers were charged a commission which would be normally paid through the proprietary channels, but after providing for the necessary expenditure the balance was reaped by the producers. It marketed wheat and all kinds of grain, butter, all kinds of dairy produce, dried and green fruits and wines. The good will it had created was of incalculable value, and a very valuable status had been built up with banking, insurance and shipping interests essential to the service. In 1921 the company established the direct marketing of dairy produce in Tooley Street, the hub of the world's dairy produce industry, and later assisted in the organisation of Empire Dairies, Limited. Overseas Farmers, Limited, was the vis-a-vis of the Amalgamated Dairy Company of New Zealand, and Mr. Gough in that connection is one of the directors of Empire Dairies. A Proud Achievement. There was no more efficient market for dairy produce than Empire Dairies: it and its suppliers not only possessed the most modern marketing machine in the biggest market of the world —Tooley Street—'but had the benefit of the branches which it had established in all the important provinces, Manchester, Liverpool, Glasgow, Nottingham and CardifT. In addition it had selling agencies all over the world. Mr. Gough is proceeding to Australia to consult with the board of overseas farmers in regard to its policy and will return to Auckland in October for the annual meeting of Empire Dairies, Ltd.