The Daily News MONDAY, OCTOBER 28/1935. MARKETING PRODUCE.

Taranaki Daily News, 28 October 1935, Page 4

The Daily News

MONDAY, OCTOBER 28/1935. MARKETING PRODUCE.

OFFICES: NEW PLYMOUTH, Currie Street. STRATFORD. Broadway. HAWERA, High Street.

By a substantial majority a meeting of dairy farmers in Taranaki, held at Stratford on Saturday, affirmed support of the New Zealand Dairy Board’s “group marketing” proposals. After explanation of their scope and intention had been given by Messrs. A. Linton and H. E. Davis on behalf of the board, Mr. Davis spoke with the authority of some years of experience as London manager of the board, and, as he assured the meeting, with the hearty concurrence of the principal importing agencies which handle New Zealand produce in Great Britain, as well as that of certain large retail organisations through which the actual consumer'is reached. Mr. Davis admitted frankly that in asking well-managed dairy companies to lose their identity in a group system, as far as disposal of their individual outputs was concerned, was asking them to sacrifice some little advantage, perhaps less than they anticipated, but he was convinced that the added strength in marketing obtainable by grouping the output of districts would, before long, more than compensate for any such individual sacrifice. He explained how the anxiety of agents of individual factories not to be caught on a falling market, when supplies exceeded demand, or a similar anxiety on the part of individual factories, although applying to a comparatively small portion of the Dominion’s output, had, year after year, at periods when supplies were heavy, brought down the price of all New Zealand butter and cheese sold during those periods. Mr. Davis dealt with the argument that the importers should be left to fight out the battle of prices between themselves, leaving New Zealand exporters to reap the benefit of unrestricted competition between selling agents, his chief point being that in a market in which organised selling is extending every day it is no use thinking that one exporting country like New Zealand can turn back the clock. It, like others, must accept facts as they are, and shape its marketing policy accordingly. Such a policy, in his opinion, must combine three essentials,

good quality commodities, well judged distribution, so that there should be no extraordinary variations in supplies, and consistent and continuous efforts by publicity of all kinds to increase consumption of New Zealand produce. These are essentials in which co-operation can and should be applied all the way, and he asked that the group marketing scheme be regarded as an extension of the co-operative movement. Unflinching opposition to the proposal was expressed by Mr. George Gibson, who regarded the proposals as but an addition to the series of marketing experiments that the Dairy Board and its predecessors have attempted with little success during the past ten years. . It was well that at such a meeting the proposals should have been criticised as well as supported with equal force, and singleminded conviction. The new system is undoubtedly an experiment. It contains elements of danger it would be foolish to ignore. They must be eliminated wherever possible, a process that must include hearty determination in each group to make the new system a success. But if there are dangers in the new system, is not the old one so hedged about with conditions that did not obtain ten years ago as to make a return to the methods of “pre-experimental” marketing days quite impossible? That was the question Taranaki representatives of the industry were asked to ponder in considering the Dairy Board’s proposals. Their local application in this province is to be referred to the dairy companies concerned to decide the arrangements most likely to suit Taranaki and no one is likely to cavil at that suggestion. Success or failure will rest to a large extent upon the real cooperation existing among the individual factories comprising each group, between the groups throughout the Dominion, and with the selling agents in Great Britain. The Dairy Board, according to Mr. Linton, envisages its functions as being the coordinating influence making that co-operation of practical application, rather than as a controlling authority issuing instructions to be accepted and obeyed without question or demur. It was in that spirit that the board sought the support of the industry in regard to its marketing proposals. Insofar as Saturday’s meeting wa's evidence, Mr. Linton’s appeal was appreciated and successful.