DAIRY PRODUCE.

Manawatu Times, Volume XLIX, Issue 2714, 23 June 1925, Page 10

DAIRY PRODUCE.

F. 0.8. SALES. There are representatives of the dairying industry in Melbourne who are opposed to selling butter overseas on a free-on-board basis says the Molbourne “Argus.” This section takes the view that marketing pn these terms is detrimental to prices and consequently producers, and that business should be conducted on a consignment basis if market stability is to be gained. This view is difficult to understand. A little reflection should reveal to this section the probable results if all butter sent abroad were shipped to be sold in London or other ports of import. London buyers would welcome the idea, as they might frequently be placed in a position to cease from purchasing Australian butter until such time as accumulations became heavy. They would then he able to influence low prices ,or at least bear the market. Fortunately, in some other industries those operating directly on behalf of the producers recognise the folly of attempting to prevent f.o.b. sales. A striking example is furnished from Kyabpam. There the directors of the Kyabram Co-operative Cannery, it is said, have made a point of selling factory products abroad on a free-on-board basis, because the business under this system is satisfactory. They know that the interest of the buyers who purchase supplies f.o.b. is to assist prices in London to be maintained to their advantage, and consequently the producer benefits. In the butter trade the policy adopted by some of the leaders towards the marketing ot butter is very shortsighted. F.o.b. sales assist the market, but complete consignment would be very largely against the interests of producers.