MARKETING PROBLEMS

New Zealand Herald, Volume LXXI, Issue 21935, 19 October 1934, Page 14

MARKETING PROBLEMS

F. 0.8. REGULATION UNWISE ABSOLUTE CONTROL RAISED [bt; telegraph—special reporter] WELLINGTON. Thursday An examination of tho new marketing regulations of the Dairy Produce Board lias been made by tlie commission, -which considers it unreasonable to attribute to the regulations the falling-off in f.o.b. and c.i.f. sales and the general fall in prices. The unfavourable stock position and the uncertainty of the market were the prime causes of a falling-off in f.o.b. and c.i.f. sales, while the general fall in prices was due to the huge increase in supplies. However, the commission regards the requirement that all f.o.b. and c.i.f. sales be through importers approved by the board is unwise and recommends that this be discontinued. It is also considered unreasonable to require importers who are consignment agents to act solely in that capacity and the commission suggests that the prohibition be modified by agreement with the Importers.' Association, with adequate safeguards against speculative purchases. On the ground that it is unwise to obstruct the obtaining of supplies by a bone-fide importing agent, objection is raised to an agreement between the board and the association not to add further importers to its list without consulting the association. The system of allotting consignments, for a year ahead, of the whole exportable surplus of butter and cheese, subject onlj' to subsequent f.o.b. and c.i.f. sales, is considered objectionable because of its inflexibility. The commission suggests that, apart from the f.o.b. restriction to approved importers, the regulations should bo allowed to continue for the remainder of the current season. It considers unnecessary the fixing each week of a minimum price for f.o.b. sales. "A confidential investigation should be made in the United Kingdom of the system of marketing New Zealand dairy produce," the report states. "It is necessary that the inquiry should seek means of improving the whole system, and obtaining the widest possible distribution of New Zealand butter and cheese throughout the country. We are satisfied that such an investigation and inquiry can best be made by a small committee familiar with New Zealand conditions and tho views held by the industry in New Zealand, and free from any suggestion of being influenced by sectional interests. It is particularly important, because of the uncertainty and suspicion that exist, that the members of any committee sent to the United Kingdom should be absolutely impartial, so as to ensure gaining the confidence of importers and merchants." The commission suggests that the board should consider the advisability and practicability of assuming absolute control of export marketing after the end of the present season, but without attempting to repeat its former experiment in tbe direction of price fixation. If this course were adopted, the board could ship all butter and cheese in its own name to its United Kingdom agency, through which it could be allocated for sale through existing and new channels of distribution.