EXPORT OF DAIRY PRODUCE.

Taranaki Daily News, 17 October 1935, Page 7

EXPORT OF DAIRY PRODUCE.

NEW MARKETING PROPOSALS. (To the Editor.) Sir,—Since its, inception the Dairy Produce Board has done excellent work in attending to shipping, insurance, warehousing, advertising etc., but the same cannot be said in regard to the various attempts to interfere .with the marketing routine of our dairy produce. From 1890 to 1923 the industry was developed, built up and prospered by the co-operative dairy companies dealing direct with Tooley Street merchants, in co-operation with local representatives of these houses. After a period of unexampled prosperity from 1914 to 1923, during which period Is 6d per pound butter-fat was common, an agitation was commenced to interfere with the old order of marketing, and since then the following experiments have been recorded: 1926, absolute control established; 1927, absolute control abandoned; 1927, limited control, practically free marketing re-instated; 1934, new 12-point marketing regulations adopted; 1935, new regulations declared ineffective and a new system of group marketing under absolute control proposed by the board and approved by the Dominion conference. It will be seen above that during the last ten years five alterations in our dairy produce marketing system have been tried. It is particularly unfortunate when, after four years, the dark cloudsthat have enveloped the industry appear to be lifting, still another experiment should be brought into effect. No other dairying country is so often altering its methods, and I can assure your readers that the British merchant resents the continued variety of , marketing very strongly. The point, is very clearly expressed and stressed by the chairman of the Australian Dairy Board, who states: “A question of importance that we on this side of the .world do not fully visualise is the effect created on the other side of the world by the talk of reconstituting our various boards. Full consideration should be given to this aspect, as it can be fully realised that such alterations may alter policies, causing suspicion and hampering operations that have been in existence for many years, and destroying a goodwill that is essential for the benefit of a very important industry.” What greater warning could there be than Mr. H. E. Davis, the board’s London manager’s remark, “that there is a great deal in connection with that experiment (the 1926 scheme) which we still have to live down?” Surely no one desires that, under the /resent world conditions of dairy produce supplies, the goodwill of to-day should be exposed to further risk through experimental changes? Group marketing; Danish voluntary system: We are informed that the proposed group system is the same as that which has yielded such excellent results and satisfaction in the marketing of Danish butter, but what are the facts? The New Zealand proposals are that our produce should be compulsorily grouped in seven areas and the produce marketed under entirely new brands, with the Dairy Board exercising absolute control over the groups and the produce. In Denmark there are eleven marketing associations, voluntary. They handle, in total, the output of 672 factories representing 41,5 per cent, of the total Danish output from 1600 butter factories. The balance of 928 factories, with 58.5 per cent, of the output, deal individually with buyers, either under agreements to supply f.o.b. or e.i.f. sales, or any other method which suits or pleases them; they have only one export'brand, “Lur," and only finest grade produce is exported. A committee at Copenhagen quotes a standard price each week, but buyers, under whichever system of purchase they, may operate, pay “overprices”—so much per kilo.- over the quoted standard price—for general items of goodwill, special quality, prompt delivery etc., and this overprice may be |d •?er pound. The main point is, however, that marketing associations, individual factories and other exporters are entirely free to market the produce as they consider fit, without any central control or other harassing conditions. It is a sane and sensible system which has been in operation for many years with little alteration, and if we were to follow their methods there could he little objection. In any case, the proposals are too farreaching in their nature to warrant the immediate endorsement of the industry, for despite the approval of the Dominion conference, the delegates had little time for serious consideration. Let the board make a success of the Iccal market proposals first, and then it may be justified H further consideration of export marketing, but not before. If, by the aid of voluntary marketing g-oups, any sections of the industry can prove that these are successful, there will be little need for the board to take any action upon the now because the formation of groups will rapidly increase.—l am, etc., J. E. LEESON, Chairman of Directors, Morrinsvil’» Dairy Co. Morrlnsville, Oct. 10.