DAIRY MARKETING

Manawatu Standard, Volume LV, Issue 226, 22 August 1935, Page 2

DAIRY MARKETING

TRADE WITH BRITAIN. “ONLY WORTHWHILE MARKET.” Per Press Association. HAMILTON, Aug. 21. “Once again I must draw attention to the outstanding importance of the United Kingdom as our only worthwhile market, and to the very unsatisfactory manner in which New Zealand dairy produce in general is marketed in that country,'’ declared Mr William Goodfellow, addressing suppliers of the New Zealand Co-operative Hairy Company at the annual meeting to-day. 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 be hoped that the new Diary Board and the Agricultural Commission would tackle this problem with determination and vigour. If the system of marketing which the company had had in operation since 1922 applied to all New Zealand butter and cheese, the net gain to producers would be a huge sum annually. In view of the pioneering work already done there was now really no excuse for further delay. The present methods of the sale of Nwe 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 Goodfellow.

“Exchange inflation, although of considerable value as a temporary measure, will be absorbed by increasing costs, and if maintained will, I believe, prove both dangerous and of no permanent value to the producers. Exchange inflation is dumping, and the British farmer is justly entitled to demand protective moasures which may have serious repercussions on tins country. As the Danish agreement expires in April next, we are assured of a free market for possibly another season ; but what then ? The import duty of 10 per cent, authorised prior to the Ottawa Agreement, which has not been enforced by Great Britain, if put into operation, would be a lieavv blow to our dairy r industry. Even a 5 per cent. Empire levy would be very costly. To make matters worse, the British farmer is 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 a serious and short-sighted policy. “I* had it on good authority some months since that the United Kingdom would consider favourably a definite offer of a bilateral agreement by any Empire country on a reciprocal trade basis,” said Mr Goodfellow. It such an agreement could be negotiated, the free market might yet, be retained and provision might be 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.”