MARKETING CONDITIONS

Hawera Star, Volume LIV, 22 August 1935, Page 7

MARKETING CONDITIONS

NEW ZEALAND DAIRY PRODUCE MR. GOODFELLOW’S CRITICISM ‘‘EXCHANGE DUMPING.’ ’ (' _ - ’ (By Telegraph —Press Association.) HAMILTON, Aug. 21. “Once again I must draw attention to the outstanding importance of the United Kingdom as our only worth while market and to the very unsatisfactory manner in which New Zealand dairy produce in general is marketed in that country,” declared Mr William Goodfellow, managing director of Amalgamated Dairies Ltd., addressing suppliers of the New’,.Zealand Co-oper-ative Dairy Company at the annual meeting to-dav. Mr Goodfellow said that apart from the efforts of the company and its subsidiaries no other Empire producer organisation was making any serious effort in the United Kingdom to secure marketing efficiency. It was to bo hoped that the new Dairy Board j and Agricultural Commission would tackle this problem with- determination and vigour.

If the system of marketing which the company had had in operation since 1922 was applied to all New Zea-, land butter and cheese the net gain to. producers would be a huge sum annually. In view of the pioneering work already done by Amalgamated Dailies Ltd, and Empire Dairies there was now really no excuse for furthei delay. The present methods of the sale of New Zealand dairy produce in the United Kingdom were simply chaotic. “In my opinion it- is also a matter of supreme importance that as far as practicable all trade barriers between the United Kingdom and New Zealand should be removed as speedily as possible,” contended Mr Gcodfellow. “Exchange inflation, although of considerable value as a temporary measure, will be absorbed by increasing costs, and if maintained will. 1 believe, prove both dangerous and of no permanent value to the producers. PROTECTTVK MEA SURES. “Exchange inflation is dumping and the British', farmer is justly entitled to demand protective measures which, may have serious repercussions in this country. As the Danish agreement- expires in April next we are .assured of a - free market for possibly another season, but what then? “An import duty of 10 per cent., authorised prior’to Ottawa, which has not been enforced bv Great Britain, if put into operation, would be a heavy blow to our dairy industry.® Even a o per cent. Empire levy would be very costly. “To make matters worse British farmers are now receiving a subsidy which has resulted in a big increase in the production of fluid milk and cheese. The increase in British factory cheese will mean a reduction in New Zealand cheese and more butter for export.

“We are compelled- to look to the United Kingdom for our main market, and any act- on our part which may be resented by any important- section in that country must be regarded as serious and short-sighted policy.

“I had it on good authority some months since that the United Kingdom would favourably consider the definite offer of a bi-lateral agreement by any Empire country on a reciprocal trade basis. If such an agreement could he negotiated a free market might- yet be retained and provision might he made for a dumping duty to be applied to all imports of dairy produce into the United Kingdom from those countries which persist in dumping. By this means trade restrictions would be removed and prices would quickly recover.”