MARKET RIVALRY

Waipa Post, Volume 49, Issue 3555, 8 December 1934, Page 12

MARKET RIVALRY

DANISH AND N.Z. BUTTER. "Because oi the goodwill secured in the British market by Danish suppliers 01' butter, also the advantageous geographical position of Denmark, New Zealand and Australian suppliers will never obtain equal prices." This is the opinion oi a Wellington butter exporting firm, delivered in reply to a recent inquiry as to reasons for the disparity between Danish and New Zealand butters.

"The have been, and are at the present time, in a very strong position compared with all other competing countries, for the main reason that regular customers take weekly quantities totalling 50 to GO per cent, thus leaving the balance for regular weekly buyers in Britain and Germany, etc., the firm's letter states. "In addition, the exports to the Eritish markets since 1930 have only increased about 13 per cent. During this period, the fall in Danish prices from about 170 s to, say, 100 to 110 s, doubtles meant that their regular customers took care of same, by reason of the lower prices, and, therefore, the Danes did not find it necessary to increase the number of consumers to any appreciable extent. '

"During this same period New Zealand increased her exports by 50 per cent, and Australia by 125 per cent, and the indications are that these two countries had to find an additional six or seven million consumers by partly displacing the best brands of margarine and securing others, by reason, of the relatively low prices. "On the question of the respective merits of quality, the British consumers of Danish appear to be perfectly satisfied; therefore, are not interested in the products of other countries at lower prices. It is believed by those best able to offer an opinion, by advertising and other publicity methods, New Zealand and Australia will slowly but steadily improve their position, but will never obtain equal prices to Danish, by reason of the latter's established goodwill and geographical position, which enables them to make regular weekly deliveries of newly made and unfrozen."