Group Selling.

Poverty Bay Herald, Volume LV, Issue 17235, 15 April 1930, Page 9

Group Selling.

In his comment on the butter market, Mr. William Goodfellow, ManagingDirector of Amalgamated Dairies, Ltd., who was one of the most ardent advovntes of absolute contro laud pricefixing, says:—“A few factories arc evidently taking their butter oil' the market, as approximately 11500 tons have been withheld. Whether this action is advisable generally is problematical, as a general hold-up of supplies might reach too large dimensions and, unless sales continue, possibly cause a disastrous reaction. The general world stock position is very heavy. There is evidence of a strong ‘bear’ movement in London at present, with little or no competitive buying; the big multiple shops namo the price which they will pay. The present competitive method of selling colonial dairy produce in London is the main cause of the present extremely low prices. Excessive competition in selling any class of goods, to a limited number of well-organised buyers, must result in lower prices. The only way to obtain fair values is to meet combined buying with group selling. The question has been repeatedly asked: What can New Zealand do anyway, with only 20 per cent, of the butter imported into the United Kingdom? This statement is entirely misleading for tho very simple reason that New Zealand does not sell its butter in equal quantities throughout the year. Tho hush months’ production is sold in the United Kingdom from January to April inclusive, and during these months it represents approximately 50 per cent., not 20 por cent, of the total butter imported into Groat Britain. Further, such butter is sold in London and the South of England, whereas Danish has a virtual monopoly in tho Midlands and the North of England. It is, therefore, fairly safe to say that approximately SO per cent, of tho butter used in London and tho South of England during January to April is imported from Australia and New Zealand! These nro the months when the major portion of our production lias to be disposed of in the United Kingdom. To say that Now Zealand and Australia, doing SO per cent, of the butter business in a definito area, cannot do anything to market their produce in a business-like manner, is, to put it mildly, an absurdity, and to continue the present, extremely competitive selling system is little short of stupidity.”