THE MATAMATA RECORD. MONDAY, NOVEMBER 10, 1924. NOTES AND COMMENTS. A DAIRY COMPANY'S JOB.

Matamata Record, Volume VII, Issue 580, 10 November 1924, Page 4

THE MATAMATA RECORD.

MONDAY, NOVEMBER 10, 1924. NOTES AND COMMENTS. A DAIRY COMPANY'S JOB.

The Only Paper PubliAad in the Matamata Con*?.

Illuminating, even in its brevity, was the reply given by Mr. A. J. Sinclair, general manager of the N.Z.C.D.C, Ltd., to a supplier at Matamata in answer to a query as to whether the company would handle certain trading lines on behalf of suppliers. Mr. Sinclair unburdened himself on the subject of dairy company trading, and told the suppliers what has been very obvious to commercial people for some years past, namely, that " the manufacture, distribution and sale of butter constitutes a dairy company's job." Even the suppliers will by this time probably agree with Mr. Sinclair that " if a dairy company performs this work well and profitably, then .it is doing all that can reasonably be expected of it." None having a knowledge of the difficulties encountered in running a business of the kind will be surprised at Mr. Sinclair's frank avowal that he was very pleased when the " directors decided to s get rid of the trading department," with all its illusions and vexation, we may add on our own account.

lllustrations are not wanting of farmers' trading concerns that used up all the capital they could get hold of, became heavily embarrassed, and are now working on cash lines, leaving others to find credit for the farmer. Not that the question of credit troubles a dairy company's trading department, for payment is made automatically by deductions from milk cheques, but general trading is a very complex business, and, added to difficulties inherent in the manufacture, distribution and sale of c butter and other milk products, is too much altogether to expect any management to shoulder successfully. Experience indicates that the attempt to handle any and every kind of merchandising by a dairy company usually ends in failure. Other farmers' concerns may take warning from the experience of the largest dairy company in the world.