F.O.B. SALES.

Waikato Times, Volume 116, Issue 19353, 5 September 1934, Page 9

F. 0.8. SALES.

(To the Editor.) Sir,—Mr Dynes Fulton states that there is nothing to stop any exporter buying a factory’s output or portion thereof and consigning through the legitimate channels to a direct buyer In London, but the regulations issued by the -board on June 29 read: “All f.o.b. and c.i.f.e. sales to be on factories’ account through such Importers as approved by the board," which definitely eliminates the exporter. The faot that f.o.b. business has ceased is the strongest evidence that the new regulations are unworkable. Mr -Fulton states that for the whole of 1932-33 season the proportion of New Zealand butter sold f.o.b. was 15 per cent., but the Dairy Board’s annual report states 19 per cent, of our exports to the United Kingdom was sold f.o.b. in that season. This difference represents 5040 tons — quite an appreciable quantity, and a great help to ’those factories which were the fortunate sellers. It is suggested that my comparison of percentages sold in August is not a true indication of the 'actual position. The actual tonnage sold f.o.b. or c.i.f. by Australia to United Kingdom during the past two complete seasons totals 27,048 tons in 193233 and 14,257 tons in 1933-34. New Zealand during the same seasons sold 23,552 tons and 20,541 tons respectively. Australia’s sales therefore diminished by 13,000 tons, while New Zealand’s decrease was only 3000 tons. Australian exporters ascribe the heavy decrease to .the -restrictions imposed last season on f.o.b. selling. Mr Fulton’s statement that the representative of my company in London strongly supported the new marketing scheme is emphatically denied in a cable received from the latter this week. The policy ray company has always adopted is the freedom of factories -to consign or sell f.o.b. as they deemed best in rtheir own interests.—l am, etc., J. T. MARTIN. Wellington, September 3, 1934.