DAIRY PRODUCE

Evening Post, Volume CXXIV, Issue 122, 19 November 1937, Page 7

DAIRY PRODUCE

SALES IN BRITAIN

METHODS ADOPTED

The introduction of Government purchase of dairy produce in New Zealand called for a certain amount of rearrangement at the selling end in BritaiiC.and the annual report of the Primary Products Marketing Department, which was presented to Parliament yesterday afternoon, details the steps that were taken.

The, Department, states the report,

selected twenty-two importing houses from the twenty-eight operating in New Zealand produce under the former, sales arrangements, the objectives of the Department being to secure the services of sales organisations which would provide the maximum regular distribution of New Zealand butter and cheese to wholesale, retail, and manufacturing interests throughout the United Kingdom; to retain those importing houses which were most likely to co-operate with the Department and with their fellow-agents in order to eliminate unregulated selling competition; to create a minimum of disturbance, in existing distributive methods. "So far as the 1936-37 season is concerned, these objectives have been adequately fulfilled," the report states. "Agents are no longer under the neces-

sity-.of-, maintaining expensive organisations in New Zealand in order to ' retain and,increase their business with individual dairy-factory companies. The elimination of that expense through the inauguration of the present system 19 reflected in a reduction in the rate of selling commission by i per cent., equal; to approximately, £ 100,000; sterling on the season's output; \. ;■■■; ■'■•■ "The method ;;of dealing with agents is as follows!—: - ■ "■ '■• ■-V "At the commencement of the season each agent-is advised of the approximate total quantity of butter and cheese allotted to" him for the year, and the brands of which' that quantity is made up. ' .■"...■.•■ "'.'• "As soon: as possible after the dispatch of each shipment from New Zealand, agents receive notification of the quantity and brands of their portion Of the consignment. On arrival of the carrying-vessel'at its destination the produce is placed'at agents' disposal by means of delivery orders issued when the vessel commences to discharge. After sales have been made settlement is effected in a manner convenient to all parties, having regard to the customs of trade; no advances are expected or payments made until after the produce has been sold. The Department re* ceives comprehensive daily returns of all sales made. .

"In addition, constant personal touch ismaintained with each agent, and, in consequence, those entrusted with the disposal of our produce are able readily to obtain accurate information relating to sales, prices, stocks, and, .arrivals, which enables them to adjust their offerings so that, while/goods are always available to meet buyers' requirements, there is an absence'of. undue sales pressure during periods of quiet demand."