DIRECT TRADING

Otago Daily Times, Issue 22833, 18 March 1936, Page 4

DIRECT TRADING

NEW ZEALAND TO SWEDEN POSSIBILITIES OF DEVELOPMENT The possibilities of developing the direct export trade from New Zealand to Sweden were outlined by Mr G. M. Lindergren, secretary of the Swedish Chamber of Commerce for Australia and New Zealand, in an address to business men at the Savoy Tudor Lounge yesterday morning. The Vice Consul for Sweden (Mr J. Sutherland Ross) presided. It was well known, said Mr Lindergren. that Sweden for many years had had a good market in Now Zealand, principally because the goods which his country exported were essential to industry. There was not really much to do in promoting a further extension of Swedish exports to the Dominion, but with regard to New Zealand exports to Sweden the chamber had a wide field in which it could cover in the direction of developing a more direct trade. One of the principal objects of his visit was to meet exporters in the Dominion and discuss with them what could be done in that direction. Sweden bought a very large quantity of New Zealand goods: far more, in fact, than she was given credit for in official statistics, because New Zealand statistics, in giving the country of transit, did not give the country of final destination, “By that,” said Mr Lindergren. “ I mean that all your principal customers: in Europe buy from you wholesale, and then, after taking their own share, distribute the remainder, which is often the bulk, to other countries, including Sweden. Consequently only a very small portion of the New Zealand goods that are imported come direct from New Zealand. We buy several times more New Zealand products from Great Britain aiid also from other countries in Europe. Why is that so? In the first place Sweden is not so much- a trading country as an industrial country. She does not, like Great Britain, Holland. Belgium, Germany, and even little Denmark, live very extensively on buying from one country and selling the same products to another country as these large trading nations do. Sweden merely sells her own manufactures to other countries. Consequently her importers are not organised on such a large scale as the huge international importing and trading firms in the other countries I have just mentioned, where internationally well-known shipping lines and other facilities have to a very large extent made these countries huge transit ports for the goodp that come from beyond the oceans.” Sweden, Mr Lindergren continued, was one of the wealthiest countries _in Europe so far as the standard of living was concerned. Its purchasing power, on the average, was probably higher than anywhere else. This he mentioned to show that there ought to be a very good market for New Zealand produce in Sweden. She bought large quantities and she bought the best. Her people were known to be very good spenders.

Wool,, hides, sheepskins, apples, kauri gum, scllcelite, and hemp were among 1 the articles which Sweden purchased from New Zealand, and there was room for a greater expansion of the direct trade. Although Sweden was a large producer of cheese it imported in 1934 cheese valued at £50,000, mainly from Great Britain* and other exports were egg yolk (£15,000), bones and horns (£9000) and sausage casings ..(£240,000). The value , of apples imported was £280,000, yet the amount imported direct from New Zealand was only £ISOO. There was surely room for a larger direct trade, which would eliminate the added expense of trading through London. Thus there * would be a better return for the producer or, if Sweden was able to buy cheaper, there would still be an advantage ".because she would be able to buy more. The ‘value of pears imported was £140,000, and in this respect New Zealand 'led Australia, showing that someone had seen the benefit of direct trade. He did not see why apples, too, could not be sent. Sweden’s imports of tallow and fat amounted to £1,000,000, and hides and skins valued at £1,300,000 were brought into the country. Of the latter trade Australia secured £17,000, but nothing came direct from New Zealand. Sweden’s wool imports were £1,500,000 and, though New Zealand directly supplied a great deal, far more was obtained indirectly. Mr Lindergren concluded by expressing his willingness to assist business men in any efforts which they might make to foster direct trade. The chairman described the position with respect to apples as “ simply amazing.” The Swedish market appeared to be practically virgin soil, he said, and a golden opportunity might well be awaiting the Dominion. Mr A. C. Cameron said that a difficulty in respect of direct trade with Sweden in apples, as well as other lines, had been in obtaining f.o.b. offers. Mr Lindergren said that Australia had also had difficulty in persuading buyers to purchase f.0.b., but later Sweden had chartered ships to carry apples. He supposed that eventually something like that could be done with New Zealand. There could, perhaps, be one ship a year.

The president of the Dunedin Chamber of Commerce (Mr M. S. Myers), in proposing a vote of thanks, said that he thought that trade between the two countries could be improved if Sweden could be shown the national benefit of direct trade. It might be pointed out to importers that, by direct trading, they would help the exporters.