METHODS PRAISED

Timaru Herald, Volume CXLV, Issue 21190, 10 November 1938, Page 4

METHODS PRAISED

N.Z. Marketing of Butter Australia Handicapped “The loose methods employed in the marketing of Australian butter in Britain are the reason for the present price margin of 6/- or 7/- cwt. in favour of New Zealand butter. The average quality of Australian choicest butter is outstanding and our produce can easily hold its own in this respect with any other butter in the world.” This view was expressed by Major J. Russell King, general manager of the Producers’ Co-op. Distributing Society, who returned to Sydney at the end of last week form a visit to England. Major King has come back deeply impressed with the efficiency of the methods now employed in the marketing of New Zealand butter in Britain. In a special interview with the “Primary Producer” he said that the results obtained by the Dominion’s Marketing Department in disposing of the large volume of butter shipped from New Zealand spoke for themselves. He will make a comprehensive report on this and other matters investigater by him while overseas to the Australian Dairy Produce Board, of which he is a member representing New South Wales co-operative interests, at its meeting in Melbourne on October 31. Concentration of Supplies Major King said that the concentration of supplies through the one channel had enabled the New Zealand authorities tc exercise an effective supervision and control over the disposal of Dominion butter. Formerly there were 30 agents handling the butter, but the number had now been reduced to 20. “New Zealand is tre ting the Tooley Street agents in the same way as the up-to-date farmer treats his dairy cow’s,” said Major King. “She tests them, and those found wanting are turned out.” Referring to the necessity to develop Australian butter trade with British outports, Major King said that the New Zealanders had scored one of their greatest successes in this field, and the volume of butter now shipped from the Dominion to British Ports other than London had a decisive influence in steadying the London market by relieving it of the pressure of supplies and was also instrumental in extencing the market for the Dominion’s produce. There was no question, he said, but exporters must seriously tackle the problem of outports. The matter was not one, however, for individual exporters or factories, but must be dealt with by the industry as a whole. The Australian dairy industry, said Major King, already possessed an organisation in Empire Dairies through which a concerted attack on the outport trade is being made and could be extended without further cost. In the six years from 1931 to 1937 Empire Dairies had increased its butter sales on behalf of Australia and New Zealand co-operative factories from 15,770 tons to 58,879 tons, its cheese sales from 6,205 tons to 10.194 tons, and its total turnover from £2.380,000 to £6.715,000. Empire Dairies in addition to its headquarters in London, had branches in Manchester, Liverpool, Glasgow, Newcastle. Bristol, Cardiff, Birmingham and Nottingham, and also a number of agencies in other important centres in the United Kingdom. Equipped for De -elopment This big co-operation of which the Australian dairy farmers were part owners with New Zealand producers, was thus equipped to undertake the further development of trade in centres other than London. It at present sold more New Zealand butter than any other distributing organisation in Britain, while it also handled about 30 per cent of the Australian butter shipped on consignment. At the same time, it could handle twice the quantity of butter at present sold through it without increasing its staff, and thus could still further reduce selling costs. Referring to advertising. Major King said Australia was not spending enough money on publicising the merits of Australian butter in Britain. If Australia desired to reap the benefits of the high quality of its butter more must be spent to attract the attention of the consumers to it. Also, the choicest Australian butters had now reached r. degree of standardisation which justified the adoption of cne brand for this grade. This would be a definite advantage in advertising, as it obviously is easier to familiarise one brand than many. The use of one brand on choicest grade butters was now justified by the close similarity of this grade of butter from, say, Queensland and South Australia, a feature of the Quality improvement in recent years.