MARKETING OF PRODUCE

New Zealand Herald, Volume LXXI, Issue 21803, 18 May 1934, Page 5

MARKETING OF PRODUCE

DAIRY BOARD'S SCHEME ————— j, F. 0.8. BUSINESS HALVED EXPECTATION IN TRADE Tlio outcome of the now marketing regulations which will ho brought into force by the Now Zealand Dairy Produce Board on August 1 will be that f.o.b. selling of dairy produce will be reduced by at least 50 per cent, with a consequent increase in the amount of produce handled <m consignment, according to representative opinion in the export trade. During the 1932-33 seaBon, the percentage sold f.o.b. was 19 per cent, 81. per cent being sold on consignment. Under the regulations, an ;i term of their licence, importers have agreed not to buy on their own account, and it is considered unlikely that there will be any evasion by means of a "dummy" purchaser. The trade understands that the board will fix minimum prices weekly as a basis for f.o.b. selling. How this will work out in practice remains to bo seen. However, the assumption is that sales will be checked whichever way the market is tending. On a falling market, f.o.b. buyers are not likely to ofler as much as the price fixed, which will be based on the current London parity, and on a rising market factories will be inclined to favour consignment. Although agents are likely to suffer personally frqnn the new regulations, there is fairly general agreement that the scheme is in the interests of tho industry as a whole. It was pointed out yesterday that most of the opposition had come from factories which had benefited as tho result of an f.o.b. selling policy during the past few years. "While tho market lias continued to fall to levels not contemplated by the buying firms, it is natural that forward business has been advantageous to the selling factory.'' said an exporter. "The factory has gained at the expense of the firm handling its produce, but this could not be continued indefinitely. A well-estab-lished firm can face a series of losses, but an •unfortunate sale' by a factory on a-rising market might place the factory in an awkward position. Obviously, at. this stage it is better for factories to consolidate their gains and take advantage of the protection given by a minimum price."

The likelihood of f.o.b. business being practically eliminated in. the future is envisaged. Representative opinion \ iews this prospect with little concern. A better understanding of the position 3ms promoted the belief that total consignment trading will lead to more orderly conditions*. Information available to agents suggests that, for the time being, London importers are regarding the scheme us an experiment for 12 months. It is fairly evident that importing iirms will retain their main connections in New Zealand. As there will next season ho no need to canvass factories, the position of sub-agents is doubtful, and, in any case, commissions, it is understood, have been reduced from 4 per cent to i per cent. Reduction of office staffs ?'s also involved, as a lighter volume of work will be handled in future.

SYDNEY WOOL SALES

CONTfNENTAL" BUYERS PRICES STILL UNCHANGED (Received May 17, 10.15 p.m.) SYDNEY, May 17 At: the Sydney wool sales to-day 10,921 bales were,offered and 0661 were sold. Also, SO2O bales were sold privately. The German and French sections secured the largest quota of the offerings, with limited support from Yorkshire and Japan. Prices, were .unchanged. Greasy Merino sold to 22Jd. The average price of wool sold, this week is £l2 lis 9d a bale, or 9d a lb. This reflects tho poor selection and the preponderance of crutchijigs and oddments; / *'"■ : " ' TiMARU Property SALE MADE TO BANK An important property deal was completed in Timarii this week, when arrangements wore made lor the Bank of Australasia-to buy the site known as Radcliffe's corner, at the intersection of Beswiek and Stafford Streets. It is intended to erect a substantial building for the bank to carry on its business. The frontage is 80ft., and it is understood the building will be threestoreyed. FOREIGN EXCHANGES DOLLAR AND THE FRANC (Received May 17, G. 55 p.m.) British Wireless RUGBY, May 1G The following rates on foreign exchanges are current,' compared _ with the cabled quotations on May 15 and

CUSTOMS EXCHANGE RATES Hates of exchange ruling at the announced dates of departure of the vessels named are shown in the follow,ing table. They are subject to confirmation by the Customs Department when the exact time of departure ,is learned on arrival of the vessels in Now Zealand, finally declared rates being marked*: — Mariposa, America, dollars' .. 5.10! Canadian Louder. Cainada, doling . . 5.12} • Golden Bear, America,' dollars. . . 5.10 City of Bedford, America, dollars . 5.141 Melbourne Main, .Japan, yen . 14 3-lfid NEW ZEALAND MONEY ABROAD Current dollar exchanges, :fs quoted by the New Zealand banks., arc as under: — \ Baying Senilis United States .. 5.01 5.0 L Canada . . . . . >">.'2o 5.00 The cost in New Zealand currency of tlio pound sterling and of the principal foreign units, on the latest quotations, is as follows: Present Price Par fid 8 d Australia, pound . . . 20 0.00 '2O 0.00 London, ixumd .. ..24 11.5rt■ 00 0.00 New York, dollar . ..4 11.83 4 1.31 Montreal, dollar . ..4 11.94 4 1 .Ml Paris, franc .. c . 0 3.82 0 1.98 Berlin, mark . . . . 1 11.22 0 11.71 Copenhapen, krone .. 1 1.38 1 1.22 Yokohama, yen . . . . 1 5.79 2 0.58 These valuations represent the current rates at which the banks sell drafts payable on demand.

par:— May IP. Mav 15 Par. 'Montreal, dol. f>; jovi 5.10% 4.800 New Ynrk, dol. . 5.11% 5.11 4.860 Paris, fr. 77 77 VJ n 124.21 Brussels, belfja 21.71 '21.84 35.00 Geneva, fr. — 15.72'/, 25.22 AmMerdam, fi. . 7.53 Vi 7.53 12.10 Milan. lire r.o'/ 1B I'O 1-32 92.40 Berlin, r.m. 12.01 12.90 20.43 Stockholm, kr. 19.40 19.40 18.159 Copenhagen, kr. 22.39'/ 2 22.39% 18.159 OKIO. kr. 19.90/4 19.90'/, 18.159 'Vienna, sell. 28 28 31.585 Praxue. kr. }22'A 122% 101.25 Ilelsirmfors. mark 220% 22'"'% 129.23 Madrid, pes. .'17 '/,« 37? io 2.">.221 Lisbon, cseu. 110 110 . 110 Alliens, dr. 530* 375.00 "Bucharest. lei. 5:0 510 813.0 T?io tie Janeiro,'mil iV A (\' ■V/,iV 5.899(1 BuenoB Aires, do . 30d' 30 'Ad' 47.619.1 Montevideo, do!. 3HV 4 d * 3H'/d' old Bombay, rupee . IS'/K-d 18'/ir,d 18d Shanghai. dol. bV/d 15' -id — ' HonjjkonK. dol. . 10%d 1 0%(l 21.58d Yokohama, yen . 1 t'. 4 d M'/'.l Bala via, fi. 7.50 12.10 "Belgrade, din. 225 225 270.31 • 1 * Sellers.