DISPOSAL OF DAIRY PRODUCE

Dominion, Volume 3, Issue 715, 14 January 1910, Page 8

DISPOSAL OF DAIRY PRODUCE

\ • FORTNIGHTLY SALT'S. ;.. It. has always;; been, ; difficult.,to know whioli'.is- tlie'-.bDst : of ;-the -several, ways available for 'the . disposal of the produce of our dairy' factories.' ', . ' ■v. While tliciicqritroversy hitherto has .liad ■jefcrenre "chiefly; to the-.two, rival modes in use ..in::New!jZealand—forwardsales ;nnd;:'open.:coiisigriment—the. chairman of tho' South "Island' National Dairy Association last .week, strongly advocated fort-. nightly sales. 'It is not a' new idea, .but it. is an idea that has not be°n. much :threshed.;brit. ;it does)not promise to relieve the dairy : factory directors .of all. responsibility ..in! the. sellingi of their produce; but it lias advantages. ; .Two'significant questions immediately suggest themselves. .. Would buyers % bo willing ; £o' incur. the expense of .keeping Merits . here'-'through" the whole season ?. •Aid,: if : so; ..Would not' that expense .ultimately ; have to. be borco by l the, dairy "faririers?:i' : .;tThe" difficulties .raisijd in. these- two questions,' fortunately, are, easily met. $here;:-seeriis to be. every reason to' cori.'.clu'd,e, that under' a system: of fortnightly, ;(or,-^iriontlJy)' : ;;:sale3 ■ those ,j industrious -.people, /'the : ; ,output-hunters,- who visit .-^ew;.;'Zealand ' every ,' year,, would not ■ be rent "hereiat- all;: the. Home- firms would, in all appoint as tlieir,agents, nunib-srs. of ' .the: firms ' already -resident in .'New,-Zealand, :' and -instruct them .to purchase on '.fheir behalf. at each sale. ;,This; would .Teally /effect an economy in the cost of ! getting supplies, and it must therefore be ' set 'down - as, a point in vof periodical: jsales.; l ' '- :Then; it., may, -be questioned ; vrbether, in the event/of. a limited number of local firms vbeing: appointed-; as. buying ; ; age'nts for a large proportion'. of the Home: houses, the competition at the sales .would ; be; sufficiently .teen. ".'This'does,; for the .-moment;-;, appear a formidable -objection to the - system; .. The/success; of auction ■sales,-such" as theje periodical-sales would no.. doubt inevitably' ' become, depends everywhere largely on; this -' amount of 'competition/present.:- ,- If only, one -man - wants: to.''buy, fix his, own, price; if two, or y three, there is -room for' collusion; if fifty,-pne': 1 could '.'assume: that 'the sellers' interests are safe; -So the 'great'.-ugly ' question . that .confronts /us -here :is; thi§: Would these fifty buyers confentrate .theiT bids in merely two or thrco local firms?. This is,-of course, a phase of the "question which, would have .to, be watched. But the sellers' interests /could always,'bo'safeguarded by .tlie.'fix-. ing,of a reserve' price, and retreat; by. way of open: consignment to the . Home market lvould' always be .possible... .'. .On'the contrary;" advantages aro. suggested/that '/ appear/ to/ .outweigh 'these risks./ /' The- New / Zealand '. fortnightly, sales -ivould /at once, become known among . the •; various. butter'-,'and cheese interests at Home, arid would l>o regularlyentered up in their .diaries..; .; New ;firms of small magnitude, capable .''.of bidding .for ,a ;50:ton: lot; but quite /unable:, to. bear: the cxpenso of sending an agent out, .would-'-'now-.,come, into the/New Zealand market through the:; medium .of' a local ' agent . and purchase supplies. ' The number of sellers ..of; New Zealand britter, at Home* would ; thus- be >,iirimediately increasedj and who knows bow soon wo.might, by this J moans, bridge the -; gap; jthat; now' separates Xew Zealand prices from Danish"?- 1 . v ;. - ;r.%That./periodical, auction - sales of ..New - ; Zealand produce would certainly /be r .the, :-bMt-'ys'bssible''/^stciß;'vc'annot,';;-,of/;Qpurse, : he: laid• down as an; ascertained."fact; Like ,all changes, this/ one would be ex-; ,/^rimerital.''-:::vAnd, : after all, there, still, ;retnairis liriteresting .little. poser for' 'think:'ovct: //Would ' fortnightly salesin Wellington' be .any • better than .the'-' present /'periodical .sales-.iri London iWhibh'ithe : bpetf/consignment isystem'- re- ?.. t'jthis and,' of - couriieV would, escape';all- danger of dispute 'as: /to quality at : . the' ; port of arrival., But .New Zealarid' has "not',experienced much ;trouble '{Ai that 'accoriit; and" ; that point alone would,./ therefore, /not carry ■ 'much .weight in- favour of local auction sales. Perhaps one of tho weightiest . arguments/of -all"would ~be the .facilities that ;:the.-'new...system ;: would;'.offer to Jocal,,grb-; ■cers-t'o/.buy >at;aLrictiori;"straight:'.from/the: 'ttjrtstorieai'.-. peHtors in. the , market bo'uld. certainly-'in-vest it w-ith* a very- healthy, tone. ; Already this'.; system / has,: been. at' times. advocated . for thb ' winter : trade, when factories have.'insufficient .produce..'to ex-; pbrt;.'.and' it : is /rather surprising , that: the experiment at -that period of the seasonlias /-not. been, tried. '. ./There'.'is ample .time: to arrange ~to do- so in','-tho comiilg winter. /: . ,