DAIRY SCHEME

New Zealand Herald, Volume LXXIV, Issue 22917, 21 December 1937, Page 15

DAIRY SCHEME

REACTION IN ENGLAND CONTROLLED MARKETING METHODS STILL ON TRIAL While it is probably too early to pass judgment on the new system of dairy produce marketing introduced in the United Kingdom by the New Zealand Government, the scheme has proved reasonably satisfactory in its trial stages, according to Mr. J. H. Maggs, managing director of United Dairies, Limited, London, who arrived in Auckland by the Awatea from Sydney yesterday. He stressed the conviction that there was still ample scope for the development of the English market. Discussing the high range of butter prices maintained for a considerable period on the London market, Mr. Maggs said stocks of dairy produce in the United Kingdom were very low when he left England. Of the home production, more wholo milk was being consumed, and a much smaller margin was left for the manufacture of butter and cheese. There were indications that a healthy marketing situation so far as the Dominions were concerned would continue for some time.

Co-operation of Merchants "The New Zealand Government's marketing scheme in conjunction with the payment of the guaranteed price has been accepted by the London merchants, and they are doing their.best to co-operate," Mr. Maggs continued. "They have marketed all the consigned produce and, so far as I know, there have been no complaints from the Dominion authorities. We have not been operating under the new system sufficiently long to bo able to judge adequately its merits or disadvantages, but in its trial stages it has proved reasonably satisfactory."

With purchasing limits unrealised, the butter and cheese market in the United Kingdom was capable of further development so far as New Zealand was concerned, he stated. When he left England there was no question of any restriction of imports and, with the spending power of the people increased, there was naturally the prospect of greater sales. Butter was certainly preferred to margarine. Continental Difficulties While admitting the extreme difficulties which to-day strictly limited the opportunities of marketing British dairy produce on the Continent, Mr. *Maggs recalled that a shipment of New Zealand butter had recently gone to Germany. "However, with things as they are, nobody can give an opinion worth twopence about Continental marketing." lie observed. Mr. Maggs, who is accompanied by Mrs. Maggs, intends to spend some weeks in New Zealand. In addition to visiting tourist resorts, he will meet prominent figures in the dairying industry.