NEW MARKETING SCHEME

Taranaki Daily News, 9 July 1929, Page 11

NEW MARKETING SCHEME

SELLING FLOOR FOR EMPIRE ! —T— ' ? I - I CO-OPERATIVE COMPANIES UNITE 1 ! I EXPLANATION OF THE ■J ■ _ (By Wire—Special to News?) I Hamilton, Last Night. ’?! An important' development in co-op* I crative dairy produce marketing,' invdly-.! ing the union of Australian and New ’I Zealand export interests, is being final-.I ised. Later the scheme may also em*?‘| brace the handling of Canadian and I South African dairy produce in Britain.?! In 1920, ten of the co-operative dis* I tributing companies of Australia, in as--,,1 sociation with the co-operative feder.i- V| tions of South Africa and New Zea-,1 land, created a selling organisation in I London known as the Overseas Fann--I ers’ Co-op. Federations, Ltd., compass-,I ing most varieties of food and other ' I primary products. Commencing witlrd limited capital and output, this concern I increased its business until the totalM sales for the 12 months ended March J 31 last amounted to £8,250,000. ' 'jd The increasing dependence of Great J Britain during the winter period upon J the Southern Hemisphere for supplies J of dairy produce and the recent com*.', binations of buying interests there have | encouraged certain substantial co-opera-? 1 tive forces of New Zealand and Aus*' - tralia to come together in the selling arena so that the needs of these economic changes can be better The early establishment in London of?£ an Empire marketing company, because of its component parts, is perhaps destined to become an important ■ factor in the marketing of colonial butter and cheese in Great Britain. Encouraged by * the wonderful progress, an Australian organisation and important co-operative j manufacturing forces in New Zealand have, practically decided to join with their fellow producers and establish an Empire selling floor for the dairy pra*,j duce of both countries. z

CONCENTRATION ON BRANDS. Associated with this important fitep will be the distribution of butter in . lib and }lb labelled pats, serving th® dual purpose of establishing the identity thereof and advertising the intrinsic quality of the goods. With both bulk and prime butters the selling activities J will be concentrated upon the.develop-, ihent of the "one brand” idea such as “Anchor” and “Fern Leaf” for the New.. ; > Zealand product, with anotner designs,tion for all the choicest Australian pioducts. , . The policy of Empire Dairies, Ltd., will be definitely one of “direct consi<mment,” and the consultative manaaerial control in Great Britain will be Tn the hands of Mr. J. B. Wright and Mr. A. E. Gough, directors of the com- ■ paiiy and men of long proved experi- > ence in the marketing of co-operative dairy produce in Great Britain# New and commodious premises in Tooley ;-] Street will be available and the organisation will undertake the development. of trade with the Midlands and North of England. This decentralisation will be an important factor of the development and should in a measure increase direct shipments to provincial porta. The scheme is said to be purely operative, and apart from the limited interest in capital, all the profits will be returned to each country. Therefor® neither Australia nor New Zealand can obtain any financial advantage at th® expense of the oilier. ' ' - z ‘.. :

TERMS OF AGREEMENT. . C

Referring to an Australian cable, Mr. UH William Goodfellow, managing director of Amalgamated Dairies, Ltd., told & News representative that it referred to 1/4 an agreement which had recently been completed by the Australian Producers’’ Wholesale Co-operative Federation and Amalgamated Dairies, Ltd. This agree- j* : ment -provided for the formation in London of a new company to be called Empire Dairies, Ltd., which would b® a co-operative venture for the marketing of dairy produce from all Empire countries. Amalgamated Dairies, Ltd,, ? U would hold a substantial financial in- A terest in this company and would act as chief agents for New Zealand. Likewise the Producers’ Wholesale Co-op- : crative Federation of Australia would;-XU represent Australia, while shares would, w. be reserved for Canada and South Af» sg rica. Amalgamated Dairies, Ltd., would utilise Empire Dairies, Ltd., as well as the existing Tooley Street firms v; employed by the company to distribute produce in the United Kingdom,, :■ Mr. Goodfellow stated that it was a matter of vital importance to th® U producers of both Australia and New Zealand that all unnecessary competition in the selling of dairy produce. Hz should be eliminated and that the two countries should combine in the United Kingdom for the selling of their pro--. A duce. Empire Dairies would commence < operations in London on October. There would be two directors appoint-, ed by the Australian Producers’ Whole-. sale Co-operative Federation and a further two by Amalgamated Dairies, Ltd;,-•:...§ New Zealand. The chairman would ba k-H elected alternatively by Australian and'.-;,. New Zealand interests. '■ _ ■ Mr. Goodfellow said Empire Dairies, gj. Ltd., would accept consignments only of Empire dairy produce and would, lie - a anticipated, help to stimulate the de- ■ ,V mand for a large and growing section gg of British people for free trade within -g the Empire. ’ _