MARKETING PLAN

New Zealand Herald, Volume LXXIII, Issue 22434, 2 June 1936, Page 12

MARKETING PLAN

OPERATION OF ACT

DAIRY COMPANY'S VIEW

QUALIFIED APPROVAL

[FROM OUR OWN COIUIICSJ'ONDKST] HAMILTON. Monday

Commenting on the Primary Products Marketing Act, Mr. C. J. Pu'lnne, general manager of the New Zealand Co-operative Dairy Company, Limited, in a circular to suppliers of the companv states that while tho company did not endorse the new policy as a whole it held tho view that it must be admitted that movements from inside tho industry itself to about improved marketing methods had not been successful, that being due to failure on the part of dairy companies to support those who originated the movements. If one made a fair and unbiassed review of the daily industr} during, say, the last 20 years, it must ho granted that it was on the marketing side of tho business that tho least progress was noticeable, and consequently the Government had not much to heat when it set out to try to better tho chaotic condition which had obtained up to tho present. Farce of Dispoeal Meetings

Continuing, Mr. Parlauo said as far as tho New Zealand end was concerned, tho operation of tho new scheme would immediately bring about a cessation of the farcical system of disposal meetings, whereby the agents of some 20 Tooley Street firms toured the country, each endeavouring to persuade the directors of dairy companies that his firm would return tho highest prices. When tho inevitably high cost of such a procedure was considered, as compared with the few tons of butter or cheese available for disposal by individual dairy companies, and tho fact that tho same firms competed again in endeavouring to sell the produce in the United Kingdom was remembered, producers might well ask themselves if it was any wonder that in tho process tho dairy farmer had not cot the most out of his produce. It was obvious, said Mr. Parlane, that the system had been the cause of weakening the market, with consequent lower prices for all concerned, and by its action in eliminating these expensive and superfluous elements, the Government was doing what tho dairy companies should themselves have done many years ago, and was rendering tho industry a real service. Furthermore, there was ample evidence that tho reputable Tooley Street firms would welcome a change which would ensure to them definite and regular supplies without the necessity of incurring the heavy expense of maintaining agencies overseas. factors in Selling Success The success of the Government's proposal in regard to the actual selling of the produce in the United Kingdom would depend very largely on the manner in which the change-over was handled. In tliht regard Mr. Parlane said his company was of the opinion that the Hon. A\ . Nash, as Minister of Marketing, would make it his business to become thoroughly conversant with what was required to' be doiie to ensure the reorganisation being carried out in the most efficient'manner.

It could be accepted that the Government realised the paramount importance of preserving the goodwill of the London firms, which provided worth-while channels for regular supplies to the retail trade, and that being so, there should he no dislocation at the selling end. In tfact, the contemplated re-arrangement should tetul to stabilise the market by assuring constant and regular supplies to the best Wholesale firms, who would, in turn, be able to widen their areas of distribution in the knowledge that ampin supplies of butter and cheese would be constantly available for their business. , Question of Costs

Mr. Pnrlane added that he did Hot know whether the guaranteed price would be sufficient to cover the extra costs which would follow the shortening of hours and the raising of wages in offices and factories, and the higher costs which would have to he paid for farm labour. It was the intention of the Government to base the guaranteed price on the average returns over the last eight or ten years, but Mr. Parlane said he failed to see any relationship between stlch an average and the increased costs the farmer would have to meet during the next season. The company's opinion was that the farmer's cost of production would be increased to such an extent that an average price based on the last eight or ten years would not place the farmer ill the position that he had been encouraged to expect when the Government proposals were in operation.

HARBOUR BOARD REVENUE CONSIDERABLE LOSS FEARED [BY TEI.EGRAPH —OWN COHHKSPONDENT] CHRISTCHURCH. Monday Fears that the operation of the Primary Products Marketing Act, under which all butter and cheese from Now JJealnnd will exported as the property of the Crown, may involve harbour boards in a. considerable loss of revenue were expressed by Mr. E. J. Howard, M.P., retiring chairman of the Lyttelton Harbour Hoard, at a meeting of the board to-day. Mr. Howard emphasised that under legislation already on the Statute Book all Crown goods were exempt from the payment of harbour dues and under the Act it would be possible, in some circumstances, for the Government Audit Office to plead this exemption in relation to dairy produce. Mr. Howard was not altogether reassured bv the statements by the Minister of Finance, the Hon. W. Nash, to the Harbours Association that harbour boards would not suffer through the passing of the bill. The danger was not- so much in the general provisions of the bill, which made dr.irv produce Crown property when it was placed on hoard ship for export, for in that case the dues would already have been paid before the Crown took over, said Air, Howard. There was a proviso, however, that the Minister might deem the produce to bo Crown propertv at any stage before shipment and it was in such cases that the harbour boards were likely to lie affected A letter from Mr. Nash to the Harbours Association, dated May 14, stated that it was definitely the intention of the Government that harbour boards should not suffer. Mr. Nash added that ho had obtained an opinion from the Crown Law Office, on the matter and he was assured that no further legislation was required to prevent harbour boards suffering loss by the passing of the bill. This ruling was binding on the departments of State, no that in any case where dues were payable by the Crown there would be no difficulty about their payment. "I know that the intention of the Minister is as stated in the letter," said Mr. Howard. "Ho has promised legislation if it affects us, yet the Crown Law Office opinion is not binding, as has been proved in the past. The Audit Office, which has to act on the legislation as it stands, is the one that counts. The Harbours Association is watching the position closely."