DAIRY PRODUCE

Timaru Herald, Volume CXLIII, Issue 20671, 9 March 1937, Page 12

DAIRY PRODUCE

MARKETING AT HOME . PROFESSOR RIDDET’S INVESTIGATION By Telegraph—Press Association WELLINGTON, March 8. In a special interview with the Wellington ‘Evening Post” representative, at the Massey Agricultural College, Professor Riddet, who recently returnc L from a tour abroad, and during his stay in England paid particular attention to the marketing of New Zealand dairy produce, gave a valuable survey of the butter market. He showed that he has little patience with those who attributed the fall in price of New Zealand butter to the marketing system, and holds as a result of personal study and deductions from official data, that the factors responsible for the drop in the price level are entirely divorced from the marketing system, which, he says, is not unique, and is approved by Tooley Street merchants, through whom New Zealand produce is distributed. After reviewing the marketing system of the past, he said the new system had nothing to do with the change in Government, as it had been conceived before the change in administration. Furthermore, it had the endorsement of the Importers' Association, which consisted largely of Tooley Street merchants. “I know from personal investigations while in London that the new methods of distribution have the solid support of the agents,” he said. “They would naturally resent anything in the nature of price fixing, but nothing of the kind is contemplated. The London officers of the Dairy Board and other produce boards, had built up amazing goodwill among traders, and were happy to be able to pay this tribute to New Zealand’s representatives. Those who had not been abroad had no conception of the wonderful work they were doing, and the splendid feeling that exists between them, and our agents. Dutch Method After glancing at speculation, as a market factor, and showing that its effect over a period was not favourable to our produce, he went on to say that the idea that other countries allowed all and sundry to market their produce, was wrong. The Russians, for example, chose a panel of brokers to handle their butter, but one of the outstanding instances was provided by the Dutch in the marketing of their bacon. When their exports to the United Kingdom were limited by the quota, they reorganised the whole of their business. They stipulated the number of pigs each farmer could grow, and the Marketing Board, set up by the Government, bought the pigs from the farmers, paying them on a quality basis. The board then paid the curing factory for curing the bacon, and consigned the finished product to the United Kingdom, where it was sold by a limited number of agents, who were not allowed to market any other Continental bacon. As a result of their marketing efforts, the Dutch materially reduced’the difference between the price of their bacon and the Danish. Although the practice of appointing a group of agents was not universal, it was widespread, and it obtained in the sale of manufactured goods as well as foodstuffs and raw materials. Thus, when people stated that New Zealand’s competitors were allowed free trade in their produce, they were not stating actual facts. Piling Up of Stocks Professor Riddet proceeded to state the actual factors that cause the fall in prices. The main one was supplies. It would be tragical, he said if the fall in prices were attributed to the marketing system, and no cognisance taken of the supply position. It would also be tragical if the propaganda of the minority were allowed to break down the system evolved by long experience by the majority of producers and merchants. He suggested that New Zealand might be able to circumvent the piling up of stocks for the London market by producing butter all the year round, instead of confining her activities to a season of the year.

If production were more uniform throughout the year it would not be necessary to hold such large quantities of butter in store, the market would be buoyant, and merchants would not be influenced by the knowledge that there were large reserves in hand. There would be less incentive to speculation, and the butter, because it did not have to be kept in store for long periods, would be fresher when it reached the consumer. People should not break down the marketing system merely because it is a Government system. It deserved a thorough trial, not over a few months only, but over a period of years, because, if fundamentally, it is only natural that any change in the marketing system will be opposed by a few disgruntled indivi-

uals, but these individuals are no good to New Zealand, as they are generally out for themselves alone. “Agents doing our business are giving us the best services possible, and I hope that, instead of trying a direct market, 12000 miles away, the critics will show sanity and judgment in their remarks.”