SOUNDLY ORGANISED

Otago Daily Times, Issue 23200, 26 May 1937, Page 10

SOUNDLY ORGANISED

NEW MARKETING POLICY STATEMENT BY MINISTER REPLY TO CRITICISM (Special ro Daily Times) AUCKLAND, May 25. Stating that he regarded the new marketing policy as being soundly organised, the Minister of Agriculture (Mr Lee Martin) indicated that by the end of May the shipment of dairy produce from New Zealand would be much the same as last year.

The Minister's statement, which was made in a telephone interview with the New Zealand Herald from Wellington, was a reply to criticism hinging upon the alleged delays in the export of butter, the claim being made by Mr E. S. Tremaine, chairman of directors of the Whangarei Co-operative Dairy Company, that none of its butter had been shipped since February 24 last. " I think the chairman of the company mdst have been misreported when he is made to say that no produce had been shipped since February," Mr Lee Martin declared. " I believe that the dates mentioned are not the dates of shipment, but are for the grading of butter. I have ascertained that the position regarding this company and all other North Auckland and Waikato concerns is that on May 22, the date of the press interview with Mr Tremaine, all produce in store up to March 3 had been shipped and paid for. Last year they had an additional 2000 boxes shipped on the same date, and by the end of May they had shipped 3421 boxes. This year, after the Cumberland loading, they will have shipped by the end of May a further 4509 boxes. Thus it will be seen that there will be very little difference in the quantity forwarded to May 31 as compared with the same date last year."

Speaking generally on the question of the shipment of butter and cheese, the Minister said that one of the advantages of the present marketing plan was that more regular arrivals of butter and cheese could be secured than was possible in the past and a better spread of the season's output could be made over the whole year. In addition, with the elimination of the disturbing factor of outright f.o.b. sales a much more satisfactory and regular delivery had been made to all outports in the United Kingdom, the quantity shipped to these ports being in accord with the local market requirements. Mr Lee Martin said it was admitted that the inauguration of this more satisfactory shipping programme caused some slight delay in the shipments from New Zealand, compared with the position last season, but, having regard to the fact that this season provision had been made for additional export quantities of butter and cheese, amounting to date to 11,000 tons, and that definite marketing advantages had accrued, he thought the policy followed had been a sound one. Furthermore, by the end of May the shipping position would be much the same as last vear. "When the finance arrangements in connection with the guaranteed price plan were being completed provision was made for dairy companies to obtain from their banks at the best ruling interest rates advances on their produce awaiting shipment to the extent of 95 per cent, of its total value," the Minister explained. He was sure that the attitude of the rreat majority of dairy company directors would be that! notwithstanding that the Government was purchasing their produce, they approved of the methods of shipment, which were designed to ensure more regular arrivals of butter and cheese at the main distributing ports of the United Kingdom in quantities to meet the market requirements. Any extra cost for storage and interest would be very small indeed, and would be covered in the fixation of guaranteed prices. "It is generally recognised, the Minister added, " that there are difficulties in any' contemplation of the purchase of butter and cheese either in factory or grading store, and that the most suitable point of purchase is at f.o.b. ocean steamer.