MARKETING OF BUTTER.

New Zealand Herald, Volume XLV, Issue 13780, 19 June 1908, Page 7

MARKETING OF BUTTER.

'AN AUSTRALIAN SCHEME.

BENEFITS OF CO-OPERATION.

[BY TKXEGILAT?H.-r r OW>' CORRESPONDENT.]

Wklmxgtok, Thursday. Two Australians are at; present' visiting Wellington, whose mission may deeply affect our methods of marketing dairy produce in London They are Mr. H. W. Osborne (manager of the Western District Factories Co-operative Produce Company, Limited), of. Melbourne, and Mr. A. J. Wyett (manager of the Gippsland Butter Factories Co-opcrativo Produce Company, Limited), of Melbourne. These gentlemen have been invited to address the dairy far* mors and others interested in the industry, at the National Dairy Show, next week.

"We have marketed our produce on the co-operative plan," .said Mr. Wyett, "for the last five years, and we have put thousands of pounds of money every year into the farmers' pockets. Ip my districts,"' said Mr. Osborne, "all the factories but tour are in the scheme. We market £200,000 worth of butler in London per annum. Mr. Wyett for his districts, markets a similar quantity, and each of us sold about the same amount of butter locally. Wa supply from 400 to 500 Australian grocers with their butter. Our total turnover for the year- was £820,000. There is a third co-operative company in Victoria, whom we are also representing here, and the total turnover of the three companies in butter and cheese is £1,125,000. The Loudon agents of the co-operative companies have full control of the whole outputs, and place out the consignments to the best advantage. Four per cent, within the Commonwealth, and three per cent, in Loudon, is charged to the factories. Last season we made a profit in the three companies of about £10,000, and were able to return one per cent, in bonuses to the suppliers, so the actual charges were reduced to three and two pei cent, respectively. The average for the whole season to suppliers for butterfat this season was between and 12d pei; lb clear. Under other systems of marketing the supplier does not get the full benefit of the high prices fetched in London, and too much of the profit goes into the pockets of the merchants.."