DAIRY PRODUCE

Waipa Post, Volume 32, Issue 1777, 1 July 1926, Page 6

DAIRY PRODUCE

DANES NEVER SPECULATE. Mr R. W. D. Robertson, representing one of the leading Tooley Street marketing houses, briefly addressed shareholders at the annual meeting of a Taranaki dairy company recently. Mr Robertson isaid things were still in a very unsettled condition at Home and it was difficult to form an opinion as to what the future would bring. Dealing with the Question of consignment versus sale, the speaker said he had always been an advocate of the former policy. Generally speaking a consigning policy would be in the ■best interests of suppliers, but at times conditions did undoubtedly arise which caused one to modify one's opinion. There had been extraordinary fluctuations on the market during the past few years, and this encouraged speculation, which had been one of the most unfortunate poipts in connection with the marketing of daiTy produce for some . itime past. Things had not got back to normal by any means yet and he admitted that while, generally speaking, he favoured a consignment policy there had been times when to continue such a policy would appear to be absolutely suicidal. Such a position had arisen during the past season and when the company at/one period had an op. portunity to* effect a sale the figure was such that he did not feel justified in advising the directors to refuse it. Dealing with the question of storage of butter and cheese in an attempt to catch the v market, Mr Robertson said this was wrong in its essence. Distribution of their produce in' Britain went through three channels, viz., the importer, the wholesaler .and the retailer. The importer brought -into England supplies from all parts of the world to feed the 48 million people there. The wholesaler's function was to buy from the importer and distributer the produce in smaller parcels to the retailer, who in turn sold to the consumer. These links in the chain were necessary. They could not get away from it, though the wholesaler was not so much in evidence as he used to be. This was due to the growth of what was known as the- multiple shop man. He did. not need to go to the wholesaler as was the case when he had a single rettail establishment. His requirements with a multiplication of shops were such that he was big enough to go to the importer and buy his stacks.

Realising that the consumer must •have butter every'day, they could just imagine what would happen when a consumer accustomed to his New Zealand butter for breakfast came down one morning';'and found there was no bultter on the table. There would be trouble in' the house immediately. He would want to know why, and the answer would be that the retailer was unable to obtain supplies. The retailer, having none .in stock, would pass on ithe complaint to the wholesaler or importer and the reply would be that no New Zealand butter was available because it was being held in store by the New Zealand people in the hope of securing a higher price. Hence the policy of holding antagonised the consumer. Were they going to sacrifiec their regular consumers by this speculative holding of their produce, or did they believe in proper distribution? The Danes never speculated in their produce. Everything they made every week was sold every week and that was why they got a better price, on the average, than New Zealand.