DAIRY PRODUCE TRADE

Poverty Bay Herald, Volume LX, Issue 18208, 2 October 1933, Page 2

DAIRY PRODUCE TRADE

NEW MARKETING SCHEME THE FOIL BUSINESS Free-soiling daily factories in tho Auckland province view with alarm the marketing proposals of the Now Zealand Dairy Produce Hoard, which it is claimed will lead to a serious curtailment of i.o.b. business. Replying tn an inquiry from its Auckland agent - , an English buying firm cabled as follows: ‘ 1 Proposals will kill f.o.b. selling stone dead.” Proposals for reorganising the marketing system came originally from the Importers’ Association, which apparently did not contemplate drastic revision of the present; method of selling f.0.b., states the Auckland Herald. Tlie proposals stated: . importers to he consigning and selling agents only . . . they may not buy in New Zealand ,or afloat on tlieir own account; till sales fi.o.li. or e.i.l. to ho on factories’ account.” However, the Dairy Board made tho toljowJug amendment: “A regulation to be established by tho board to provide that, no 1'.0.b or e.i.f. sales shall bo made below London current prices at the time the sale is made.”

It is claimed that the establishment of a minimum price—the equivalent, of the London ruling price—will practically eliminate f.o.b. sales. Sales have recently been made at up to dl jd per ib., which was below tho current juice in London. Thus factories will not, be ablo to take advantage of good offers in tho spring for new season \s make. Tho experience of me factory- last season was that the same steamer carried butter which had been sold 1’.0.b. at LUd, and consignment butter which realised Blci.

The amendments made by tho board have been forwarded to London for consideration by tho Importers' Association. The board recently advised factories by circular that the new proposals would be brought into force at a date to bo decided at its next mooting. The fact that the newly-formed Free Marketing Association apparently dirt not voice strong opposition to tho proposals at the conference held iu Wellington last week has caused some comment in the trade. It was stated this week that opposition was withheld on an assurance being given that f.o.b. selling would bo subject to a minimum of interference.

The proportion of butter sold f.o.b. and c.i.f, iu the .1932-33 season was 19 per cent, of the total export, compared with 17 per cent, in the previous two years. C.i.f. selling is of very slight dimensions only. The policy of f.o.b. selling was followed particularly by North Auckland factories, which showed very favorable returns owing to the continued decline jn prices as the season progressed.