NEW ZEALAND PRODUCE.

Star (Christchurch), Issue 19985, 26 June 1920, Page 9

NEW ZEALAND PRODUCE.

* _ METHOD OF (DISTRIBUTION. TOOLEY STREET SHOCKED. By Telegraph—Press Association—Copyright. Australian c>nd N.Z. Cable Association. (Received Juno 26, 9.45 a.m.) LONDON, June 25. Tho decision of tho Now- Zealand farmers to distribute their butter and cheese through the British Wholesale Co-operativo Society has disagreeably shocked Tooley Street, which admits that tho decision seriously affects them. Tho agents declare that it is a poor reward for the years'devoted to popularising New Zealand dairy produce. However, it was not altogether unexpected. The agents add that Now Zealand’s Socialistio trend might have predisposed the farmers to reject the offer of a supposedly Socialistic British organisation, but, the agents declare, the farmers will find that co-operative distribution is very different from Government control. It is not a substitute for that control. It is a basic principle of the Co-operativo Society to buy in the cheapest possible market, and enable its own shops to compete with the private retailers. This, in tho long run, is bound to conflict with the fanners’ object of getting the best price. _ The step means that the farmer is placing himself in the hands of one buyer controlling only onc-tenth of the total trade of the country. It also means that New Zealand butter will lose its old markets. As tho Cooperative Society at present largely sells Danish butter, the private retailers will refuse to sel New Zealand butter owing to their antagonism to the Co-operative Society, while they will bo able to goc more Danish, and sell it iu competition with the Now Zealand article. Tlie agents, however, do not contemplate counter-action. They say the New Zealand farmer is free to sell as ho chooses, but they nro confident that experience will show tho wisdom of the old policy of trusting to tho private traders. Some agents point out that recent Ministerial replies in regard to Government cotnrol indicate that there is no immediate danger, and that they believe a now situation may arise before the trade is de-con trolled.'