PRIMARY PRODUCTS

Otago Daily Times, Issue 23353, 19 November 1937, Page 10

PRIMARY PRODUCTS

MARKETING OPERATIONS MINISTER CLAIMS SUCCESS DIFFERENTIAL MARGINS FOR QUALITY 'From Dim Parliamentary Reporter) WELLINGTON, Nov 18. Detailed information concerning the first year’s operations of the Primary Products Marketing Department are contained in the annual report of the department, which was presented in the House of Representatives to-day. Since the inauguration of the guaranteed price scheme, quality differentials have been introduced to cover the payment for butter and cheese, according to grade. Discussing these margins, the report reveals that 441 per cent, of the creamery butter exports last season were purchased at the basic guaranteed price. Sufficiently high grading points were obtained by 36 per cent, of the exports to qualify for payments above the basic rate, while 191 per cent, were purchased below the basic guaranteed price. In the case of cheese, 551 per cent, was paid for at the basic guaranteed price, 201 per cent, above, and 24 ner cent, below. A general defence is also given of the whole of the marketing procedure. “ For the first time in the history of the industry,” it is stated, “a single authority could make decisions in the broader interest of the industry as a whole. The industry viewpoint superseded the narrower and shorter-term viewpoint, and the marketing advantages of organised regulation became a reality under the system inaugurated by the Government.

Satisfactory Results “ The results over the season must be considered satisfactory,” the report continues. “ For the year 1936 as a whole the price of New Zealand finest salted butter averaged 10 per cent, more than in 1935, while Danish showed an increase over the same period of 6 per cent. During 1936 Danish butter averaged 18 per cent, higher than New Zealand, compared with 23 per cent, higher in 1935 and 35 per cent, higher in 1934. It should be noted that in 1936 New Zealand supplies increased substantially over the 1935 figures, while Danish supplies did not increase.” The sales of butter and cheese to markets other than the United Kingdom are listed in the report. The figures show that the foreign exports for the season totalled 125,333 boxes of butter and 1657 crates of cheese The largest individual markets were the Panama canal zone, which took 38,654 boxes of butter, and Honolulu, which purchased 26.200 boxes.