INTERNAL MARKETING.

Kaikoura Star, Volume LXIV, Issue 56, 20 July 1944, Page 2

INTERNAL MARKETING.

SOME OF ITS BENEFITS. | About no institution in New Zealand has controversy been raging more fiercely than about the Government’s Internal Marketing Division. Yet about none does the public know' so little what is definite. Here are some actual facts about how it operates: —

When Labour, beginning to govern in New Zealand, instituted guaranteed prices for export dairy produce it discovered that it had thereby set itself an intricate little (writes Doris Mostyn, in a booklet entitled “The Truth About Internal Marketing.” For what was to happen to factories supplying, not London, but Watkikamukau? Obviously their suppliers would have to be guaranteed the same return, also, or else the newly-formed (Export) Marketing Department would have a constant q'uarrel upon its hands with both cow-cockies and consumers. Even as things had been both were dissatisfied—customers with the uncertain quality and often irregular supply of their butter, and factories with the big rake-off that distributors were getting for inefficient service. But wholesalers and retailers in turn swore that their respective profits of lid to 2d (Dominion average) on each pound were not too much when one considered the costs and uncertainties of sending southern butter North (or northern butter South) and holding or releasing supplies on “spec.” And everything had to be “on spec” since there was no telling what move some competitor might make, completely queering the market. To cut these costs by controlling this competition and to end this chaos and complaint, Government set •up an Internal Division of the Marketing Department. And, since only a practical distributor seemed likely to understand the full intricacies of the confusion ,they appointed as head the most successful private distributor of foodstuffs in the country. . . . Controversy over the new proceedure is now dead, for the new Division’s machinery for distributing butter certainly worked well. As consequence of a complicated formula (guaranteed price plus costs of preapring for local sale, cost of preparing for export factories are kept as glad to supply New Zealanders as to work for Lord AVoolton. Half a million has been saved to the public in every one of the six and a half years. As a consequence of zoning and licensing, distributors and retailers do as well on profits of £d and Id a pound respectively as they 'used to do on IJd to 2d, and as a consequence of a round-the-year plan for keeping every area freshly supplied (even when its local factories are closed in winter) we need rarely complain these days of erratic or delivery. Incidentally, also, a single full-time butter-patting plant in AVellington and two in Auckland are some saving on the 15 private plants, each idle longer than at work, which were in 1937 either in existence or in project. And if we get only half a pound to-day, we get it still at 9d.

SOME EXAMPLES OF PRICES. 'J’o the allegation that “everything the Internal Marketing Division touches Becomes scarcer,” the booklet continues “No, only apparently scarcer, because: the Department is supplying our own and Allied Forces, hospitals and prisoners of lar, and rationing out what remains for civilians. Under marketing control, apples are 2d to 6Ad per lb, before they were controlled lOd; Australian prices this year 2d to 6d each. Tears, under control, 4d to 9Jd per lb; before being controlled 1/; Australian price 3d to 4d each. Bananas, before control, city 7d, 7Ad country, per lb; before control, up to 1/; Australian price up to 1/6 per lb (or 34d each) though locally grown.

Lemons (New Zealand), under control, £d to each (imported 2d to Id each; not 'under control, up to 1/ (Mayed lemons); Australian price 4d each until price order fixed. Oranges, undei control (imported), 2d to 6d each; not under control New Zealand sweet oranges up to 1/ each, grapefruit up to 8d each; Australian 8d each 'until price order fixed. Honey (bulk), lOd per lb under control, potted .1/2 per lb; not under control up to 1/6 (ceiling order) for comb honey (including wax, etc), rose from 7d to 1/2 average last year; Australia, N.Z. prices quality for quality). Butter (under control (since pre-war) .1/6 per lb; not 'under control, price rose from 1/3 to 2/6 (1921) last year; Australian price l/84d lb. Lggs, pre-war prices except for 2d a dozen in flush, under control; not under control rose, from l/8d to 3/3d (1921) last year; Australian price rose from 1/ to 2/ wholesale (when further increase stopped by price order). Other examples will be published at a future date.