DAIRY MARKETING.

Evening Star, Issue 22248, 28 January 1936, Page 8

DAIRY MARKETING.

It is hardly surprising that much consideration should be given by the new Cabinet and the members of the Dairy Board to the marketing of butter, both for overseas and for internal consumption. The local marketing of this produce is well known to be in a state something akin to chaos, and it would seem that the Government has now a great opportunity to step in and eradicate the various difficulties caused mainly by, lack of co-operation. Whether or not the payment of guaranteed prices will prove the enduring blessing which is hoped for by its originators, there is no doubt that it will give the Government a good chance to take charge of marketing. Indeed, there is no alternative other than that the Government should assume the control, either directly or through the Dairy Board, of all export, as well as local butter. Tremendous possibilities are opened up, for, if a well-organised scheme is put in train, a great deal of money will be saved, and the whole dairying industry should benefit.

Nothing very definite has been made public concerning the results of the discussions between Cabinet and the Dairy Board, but there are grounds for hope of better times ahead in Mr Savage’s statement that a successful conclusion is foreseen. This indicates that the plans approved by the Dominion Dairy Conference in September for a considerably greater coordination at the selling end are finding

some measure of support from the Government, and there appears no reason why those plans should be upset by the payment of guaranteed prices. The policy of group marketing, as outlined at the time of the conference, means that the produce of each group would be sold in the United Kingdom or elsewhere under one group brand. Each group would have a substantia] quantity of produce to offer of comparable quality and character, permitting buyers to draw from good straight lines in any desired amount. The proceeds of the sale of produce from each group would be pooled, permitting the exploitation of areas in which sales are slow, and providing the opportunity to each group to link up, if necessary, with a particular distributive organisation in the United Kingdom. In the case of export butter, no unwelcome significance is attached to the proposal to establish six groups in the North Island and only one for the whole of the South Island. By far the larger percentage of export butter is produced in the North Island, between 56 and 60 per cent, of the South Island butter being consumed locally. Therefore, the South Island will perhaps be more concerned with the plans for the co-ordina-tion of local marketing. Under the Dairy Board’s original scheme, if 60 per cent, of the total butter made in a district were required for local market, all factories there could pat up to 60 per cent, of their make if they so desired. As a low figure would be allowed for patting, some factories on the outside of the district would not find much profit in it, and so, by mutual consent, central factories might do most of it. The whole of the butter on the local market would be sold under two brands—finest and whey. It is understood that some of the Dairy Board’s proposals have been modified since the conference in September, but there is every reason to assume that the main idea of increased co-operation will emerge immaculate from the final discussions. It is practically certain that the payment of guaranteed prices will automatically eliminate the addition of the high exchange. In view of the importance of the dairy industry to New Zealand, the result of the further deliberations between Cabinet and the Dairy Board will be awaited with much interest.