MARKETING DAIRY PRODUCE.

Dominion, Volume 5, Issue 1380, 5 March 1912, Page 8

MARKETING DAIRY PRODUCE.

A GLASGOW FIRM'S SUGGESTION. The marketing of New Zealand dairy produce in Scotland is touched upon by a Glasgow firm in a letter to a local butter merchant. The letter £ is dated January 12, and wo quote the following extract:— "At tlvs present time there is very little New Zealand butter or cheese selling here, which is accounted for by the fact that prices are far too high, and the consumption is accordingly restricted. New Zealand cheese is quoted hero to-day at 74?., and butter 1345. to 1355., with no immediate prospect of reduction. The only hope of reduction lies in smaller consumption and increased supplies from Denmark. Danish butter will be ss. to 6s. lower for next week, and this may have somo effect on New Zealand and Australian. "We know it is the custom on your side for factories to dispose of their outputs at the •beginning of the season, which we think is bad policy, as thereby they do not get full benefit of the market. At the present time, you see, they would bo getting r about,.los. per owt. more for their cheese,' and about at least 15s. per cwt. for butter. "Our opinien is, that if factories would sell thoir butter and cheese on the same principle as prevails in Canada they would make more money. In Canada, tho butter or cheese is sold weekly or fortnightly all through the season, buyers attending the different centres where the

poods .iro sold and bidding for them according to tlie market price. "If that plan ivus adopted in Ncw Zealaiul we are sure tlie result would bo muro satisfactory to tho producers, and enable merchants like yourselves and us here to buy .weekly or fortnightly as required, by "cable. "At the present time tho whole trade is centred in the hands of a few large London firms, who monopolise Hie business and control prices just as they think fit, which is not to the interests of tho trado as a whole."

A Local Merchant's Views. A local butter merchant, speaking in the above collection, said ho was in accord with the sentiments expressed in tho letter. To his way of thinking, there was no question that the 'present system was not satisfactory to tho factories, inasmuch as they were taking too groat a risk, whether by selling the output for the season, or consigning. Taking the. last two seasons as an illustration! In the 1910-1911 season tho bulk of tho factories consigned, with tho result that they lost on an average.ld. per lb., based on the price paid by some buyers at tho commencement of that season. This war tho bulk of the factories sold at about lid. to llld. per lb., with the result that the buyers will reap the benefit to tho tune of Id. to IW. por lb. It was a well-toc-wii fact that only a very few of tho larger firms in England could afford to come out here and buy six months ahead, but if the principal of fortnightly or monthly sales was instituted, as suggested in the letter, it would mean that a large number of smaller people in England (really very large merchants, judged by the New Zealand standard) would be represented. Summed up, the position Mulct bs put as follows: "Decrease' your risk and you increase your competition."