DOMINION PRODUCE

New Zealand Herald, Volume LXX, Issue 21578, 24 August 1933, Page 12

DOMINION PRODUCE

MARKETING. ABROAD : SUGGESTIONS FOR FUTURE MR. W. GOODFELLOW'S VIEWS [from cur own correspondent] HAMILTON. 'Wccliiesdiiy in the course of a review of tho operations of the New Zealand Cooperative Dairy. Company, Limited, at the annual meeting of the company to-day, Mr. \V. Goodfellow, ( an advisory director of the company, made reference' to the present marketing conditions and tho world outlook for primary produce. 1 Referring to sales, Air. Goodfellow said the company had exported 32,904 tons of butter during the past season, 10,427 tons of cheese, and substantial quantities of milkpowder, casein ,and evaporated milk. Ho quoted figures to show that practically tho wholo of the company's producc was exported to tho United Kingdom, but that limited quantities, especially of butter, were sent regularly to Pacific Islands, Panama, Honolulu, China, Japan, Hongkong, Malay States, India, Burma, Java and Ceylon. No New Markets It had been repeatedly stated, said Mr. Goodfpllow, that new markets should be developed for the sale of New Zealand dairy produce. Ho would like to emphasise tho fact that there were no new markets. For many years past, every effort had been made to dovelop sales in foreign countries. The fact should not be overlooked by tho peoplo of New Zealand that the United Kingdom purchased 88 per cent of tho total of New Zealand exports of all commodities, and, if wool were excluded, which was tho only product of any iinportanco that had an international sale, it would bo found that the percentage would bo considerably higher.

Speaking of tho company's business in tho United Kingdom, Mr. Goodfellow stated that tho company had erected a very fine factory in South London for tho preparation of pat butter for the British market. Sales were expanding, and, although no profits had been taken out of tho business, it had for several years been entirely selfsupporting, and, in addition, provided a substantial sum for publicity. Milkpowder sales had been maintained with some difficulty, owing to tho extreme competition from Continental countries. Casein had been soiling very freely, duo to tho reduction in supplies from tho Argentine. Mr. Goodfellow mentioned that, in addition to the handling of dairy products, Amalgamated Dairies, Limited, acted as solo selling agents for tho New Zealand Co-operative Pig Marketing Association, and, during tho past year, had handled pork and baconers to the value of £IIO,OOO. A now development was .the. formation of an Empire Bacon Curing Company, to be established at Newcastle, which would operate on a profit-sharing basis with the pig marketing association, which had contracted to supply a substantial quantity of baconers for a period of years.

Disposal ot Produce Regarding the marketing of the company's produce, Mr. Goodfellow stated that tho policy of the company was to sell to wholesalers and multiple shops, but not to retailers. , Tho turnover during the past year was as follows:- — 37,534 tons of butter, 10,276 tons of cheese, 139,987 cases of eggs, and a limited quantity of other goods, such as Scotch cheese, Canadian poultry and Irish butter. The turnover was £4,153,997. Last year it was £3,567,479. Dealing with prices and prospects, Mr. Goodfellow stated that the past season had been the most disastrous on record. However, there were indications that the worst was over, and that there would be a gradual improvement in prices. " The reason for the hugo importation of butter into the United Kingdom of recent years was due to the earlier collapse of wheat and wool prices, which forced large numbers of farmers into dairying as the only alternative," said Mr. Goodfellow. " Now that butter-fat has reached an uneconomic level, and, at the same time wheat and wool have recovered, tho drift will be reversed, and it may reasonably be anticipated, during tho next couple of years, that a largo number of farmers will revert to their previous occupations of producing wheat and wool. Then again, the Danish quota allocated by the British Government will provide a substantial reduction of imports from that country. Reports from the Argentine indicate that low prices are increasing consumption, and also curtailing production. The Quota Suggestion

Referring to the recent Quota discussion, Mr, Goodfellow stated that it was, in his opinion, entirely fallacious to indicate that any profit would accruo to the producer as the result of auv system of curtailing exports. Fortunately, the quota talk had ceased in the meantime, but, unless the Government was prepared to honour the spirit as well as the letter of the Ottawa Agreement, there was no doubt but that tho whole industry would face an exceedingly serious situation in two years' time. Mr. Goodfellow commented on tho marketing proposals recently put forward by Toojev Street. lie stated that, in all probability, the proposals would not be acceptable to the industry in their present form, but, in his opinion, could bo amended in such a way as to be of immense value. Tho present system of marketing Now Zealand produce in the United Kingdom was obsolete,, inefficient and resulted in a huge annual lass to the dairy industry. One only had to compare the price of Danish butter with that of New Zealand, or Canadian cheese with that of New Zealand, to realise the immense disparity in value, in a large degree caused by our marketing system. The Danish system was not applicable to New Zealand, but New Zealand had no system, and must evolve one. which could be done easily onongh. Before anything could be accomplished, however, it was imperative that the constitution of the Control Board should be altered. Constitution of Board

What was required was a process of elimination, whereby, a board would be elected which would be truly representative, of the industry. Mr. Goodfellow advocated a board of six. not 12, to be elected, by a Dairy Council of from 30 to 40 directors, such council to be elected by factories; on a tonnage vote. f Concerning the local market, Mr. Goodfellow stated that he desired to warn suppliers that it was necessary to be careful in creatine; an artificial price locally. Repercussions would occur, and produce exported to countries such as Canada would be liable to dump duty,'due to the fact that the export value.would be lower than the homo consumption value. However, if the scheme were gone on with, .the Dairy Board should administer it. The Dairy Board, having obtained legal authority, could collect a levy from all factories on all local sales and thereafter distribute the proceeds to all factories on a production basis.