NEW ZEALAND BUTTER.

New Zealand Herald, Volume LXVII, Issue 20595, 20 June 1930, Page 13

NEW ZEALAND BUTTER.

OPINIONS IN AUCKLAND.

QUESTION OF GOODWILL*

CANADIAN SALE METHODS.

Whether New Zealand should take any action regarding the practice of Canadian merchants of blending New Zealand' butter with local butter and selling it under local brands was a question which was discussed by the Chamber of Commerce Council at its meeting yestferday. The discussion arose out of a letter from Dr. V. F. Connor, of Noel, Nova Scotia, enclosing a clipping from the Eastern Chronicle, a leading Nova Scotian newspaper, in which the practice of merchants was freely discussed. In a letter to the chamber, Sir. F. H. Leonard, of the firm of Leonard and Son, Limited, said he considered the practice of the Canadian merchants was purely a domestic matter, which should not be referred to by New Zealand producers. The customer was the man who bought the gutter in the first place, and what happened to it afterwards was entirely the concern of the consumer in Canada. If in Canada chose to repack New Zealand butter and sell it under another label, -" making a song " about it would not improve the volume of trade or tho price received, and it would result in alienating tho sympathy and goodwill of a valued client.

Another view was expressed by Mr. W. Goodfellow, managing-director of Amalgamated Dairies, Limited, who said that while it was a general practice of Canadian merchants to buy New Zealand butter in bulk and sell it under their own registered brands, his firm had taken a very definite stand, and for some time had insisted on the merchants taking a fair proportion of pat butter, which was wrapped and packed under its own registered brand in New Zealand. He considered that so long as New Zealand continued to sell butter in bulk substitution would take place. Mr. L. A. Eady expressed the opinion that this was a case where action could quite well be taken. The term " goodwill," as it was understood by most merchants, did not include such action as was apparently going on. After discussion, it was decided to forward the correspondence to the Exporters' Committee for a report.