A RETROGRADE STEP.

Dominion, Volume 3, Issue 842, 14 June 1910, Page 8

A RETROGRADE STEP.

DAIRY PRODUCE SALES. CON- , DESINED. "An unnecessary and retrograde movement," is Mr. R. Ellison's description of the South. Island Dairy Association's Bcheme for the holding of fortnightly tales of' dairy produce at Dunedin aud Invercargill. Mr. Ellison is the London representative of the National Dairy Association, and he hns sent out a lengthy condemnation of the new scheme in a letter to the editor of the "Otago Daily Times." "My experience during the last few months in Tooley Street," writes Mr. Ellison, "has led me to the belief that a very much improved condition of things could bo brought about at this end if the factory. system of co-operation ■was carried a little further; but so long as 50 per-cent, of our New Zealand produce is sold right out to speculators, just so long will the New Zealand dairy farmers' produce be subject to the _hundred and one influences which 'bull' and 'bear' the market. If it be contended that fortnightly sales will get nearer to the value, I contend that selling on consignment gets still nearer, the actual value. A factory sells its output for a season. The purchaser has made his one deal and stands to it; if he is purchasing every fortnight he will have so many more chances of getting even on his purchases during the season." The longer the factories retain an interest in their produce thp nearer they get to tho British consumer, and, therefore, the nearer they, approach, to the value of their goods. "Take, for instance, the position this season with a market for butter such.as_ we have - had. What English firm could have afforded to buy butter with prices as they have" been? It would have been impossible to sell on the proposed fortnightly system , , except, probably, for a few weeks in the season. If it had been possible to.find purchasers for butter at 110s. to 1125., cXf., for December shipment, the factory .selling at this figure would have experienced a heavy loss as compared with consigning, tho loss to the factory being between 10s. arid 12s. per cwt. This same condition of things has applied right through. the season. For instance, take the period when our butter reached 1285., 130s.—it would be an impossibility to get a price bid on fortnightly selliug that would bring business. The factories would absolutely refuse s to listen to prices based -on tho possibility of the market six weeks ahead, which, as a matter of fact, would he somewhere about 108s. to 110s., c.i.f., or possibly-less. The factory would have Eo other alternative but to consign— ■with what , result? Its produce would go into the hands of some firm that would simply sell the shipment ; and havo done with it, knowing full 'well that it would possibly get no more of the same brand for months. No attempt could be made to create a demand or specialise with it, no matter how good the quality. One of the secrets of handling butter outputs is to place them in the same channel and work up a connection. To sell one week and consign tho next would rob a factory of the benefit which is derived from the policy of. creating a demand for the special Irand." ' Continuing, Mr. Ellison says that a good deal has been made of the fact that a quantity of the Canadian, Siberian, and Danish butter and cheese is sold, and not consigned. This, ho contends, does ,not affect the position, as Canada and Siberia are only a few -days away from the market, and Denmark only 48 hours. Australia sends . between CO and 70 per cent, of its butter on consignment, and all the Argentine butters are handled on the same system. - ■ Mr; Ellison concludes with the following advice to, tho producers of New Zealand's butter and cheese:—"Send it along .to London on open consignment without of any lad, to" a firm' in whom you have faith, and make a name for your brand; If you are not satisfied to place your trust in any -particular commission .house, appoint or send someone to 'keep an oversight at this end." ' '