DAIRY EXPORT PROBLEMS

New Zealand Herald, Volume LXIV, Issue 19675, 29 June 1927, Page 12

DAIRY EXPORT PROBLEMS

STAGE OF TRANSITION

» GROUPING " AND AUDITING

MEMBER'S ALTERED STATUS. RUMOURED LONDON POSITION. v Several new features of the transition from absolute to nixlificd control of the export of dairy produce are engaging the ißarnest attention of those in the trade Among the matters upon which interest is centred are group marketing and the continued auditing of the accounts of London merchants by the Dairy Produce Board.

Remarking that the auditing of tlio account sales of London firms was a "control" measure, the Auckland representative of a New Zealand exporting firm said: —"How can it be enforced now under free marketing? Admitting Mr. W. Grounds' contention that this form of supervision affords an index to the distributing capacities of agents, it. must be expected that they will resent it under free marketing. It ' goes against the grain ' of any reputable firm to submit to such a practice and I fail to see the justification for its continuance under the reversion to the olu order •>! things. It appears to me to evidence a desire to retain some form of control under a different guise, but at no little expense and without much gain." Group Marketing Undefined. The principal of a city consigning firm differed from this opinion inasmuch as he believed that auditing of accounts would not be resented, but he agreed that perseverance with the practice would cost more than it was worth under free marketing when factories sold as they thought fit and judged the capacity of their agents by net results. " Success in the marketing of New Zealand butter lies in the creation of as intense competition as possible," was the comment of an exporter when approached for his views regarding the group marketing schemes propounded by Mr. W. Goodfellow. In the absence of further details of Mr. Goodfellow's proposal, especially as to whether pools were part of the scheme, the subject could be approached only in circumspect fashion. " It is important to know whether, in the event of a falling market, there is anything to prevent the promoter or promoters of a group marketing scheme selling their own butter first," said another expert, who, like the former, added that further information of the method of group marketing was desired. "We have yet to learn whether it is proposed in the case of Mr. Goodfellow's scheme to market through the present agents of his company alone, or whether the trade will be distributed,"' he said.

What some regard as a problem confronting group marketing is its probable conflict with the operations of the NewZealand Co-operative Marketing Association, for which the National Dairy Association has been appointed agent. A Cause of Complaint.

It is stated as a cause of dissatisfaction in some quarters that butter graded prior to May 1 and therefore under control, although it is still stored in New Zealand, may not be sold at ruling prices, but must be'" pooled.'.' It is argued that such supplies could be sold now at a figure above the average which the last " control pool will realise anil without adversely affecting the'sale of "control" butter yet unmarketed. One of the most intriguing topics of discussion in dairying circles at the moment is the rumour which has gained credence that one member of the Dairy Produce Board has accepted the agency c.f a well-known English firm. This was suggested at the Rotorua conference of the National Dairy Association when a questioner asked Mr. Grounds, chairman of the board, whether in such a caso the member could retain his seat. Mr. Grounds said there would be no compulsion to •vacate it, although he had no knowledge that such a state of affairs existed.

The opinion expressed yesterday by city representatives of firms interested ■ n (he dairying industry was that the act'of a board member in holding the agency of ;i London firm was incompatible with the spirit and enunciated policy of the (wai'l. Others held that, as Sir. Grounds stated, it was no disqualification, but they queried whether the member in question ■was any longer a producer and therefore entitled to retain his seat.

Of the Home market, as it exists to-day, a dullness is reported, due probably to a surplus of Danish supplies and uncertainty as to the manner in which the Dairy Produce Board will dispose of the stocks of •*' control " butter remaining.