PRAISE FOR BUTTER MARKETING

Hawke's Bay Herald-Tribune, Issue 44, 8 March 1937, Page 5

PRAISE FOR BUTTER MARKETING

-Press ABsocltttion.)

System Not Responsible For Drop in Price PROF. RIDDET'S REVIEW

(By Telegrnph-

WELLINGTON, This Day. In a speeial interview with the Wellington Evening Post representative at Massey Agriculture College, Professor Riddet, who recently returned from a tour abroad and during his stay in England paid partieular attention to the Marketing of New Zealand dairy produce, ,gave a valuable survey of the butter market. He showed that he had little patience with those who attributed the fall in the - price of New Zealand butter to the marketing system and holds, as a result of personal study and deductions from official data, that the factors responsible for the drop in the price level are entirely divorced from the -marketing system, which, he says, is not unique and is approved by the Tooley Street merchants through whom New Zealand's produce is distributed. After reviewing the marketing system of the past, he Said that the new system had nothing to do with the change in Government, as it had been conceived before the change in administration. Furthermore, it had the endorsement of the Importers' Association, which consisted largely of Tooley Street merchants. * t» "I know from personal investigations while in London that the new methods of distribution have "the solid support of the agents," he said. "They would naturally resent anything in the nature of price-fixing, bpt nothing of the kind is contemplated. " The London officers of the Dairy Board and other produce boards had built up amazing goodwill among traders and he was happy to be able to pay this tribute to New Zealand's representatives. Those who had not beeu abroad had no eonception of the wonderful work they were doing and the splendid feeling that exists between them and the New Zealand agents.

After glancing at speculation as a market factor and showing that its effect over a period was not favourable to our produce, Professor Riddet went on to say that the idea that other countries allowed all and sundry to market their produce was wrong. The Russians, for example, chose a panel of brokers to handle their butter, but one of the outstanding instances was provided by the Dutch in the marketing of their bacon. When their exports to the United Kingdom were limited by quota they reorganised the whole of their business. They stipulated the number of pigs each farmer could grow and a marketing board set up by the Government bought the pigs from the farmers, paying them on a quality basis. The board then paid the curing factory for curing the bacon and consigned the finished produce to the United Kingdom, where it was sold by a limiled number of agents who were not allowed to market any other Continental bacon. The result was that the marketing efforts of the Dutch had materially redueed the differeiace between the nrice of their bacon and

Danish. Although the practice of appointing a group of agents was not universal it was widespread and it obtained in the sale of manufactured goods as well as foodstuffs and raw materials. Thus, wTior* -non-nlft "hlin.'F New Zealand's

competitors allowed free trade in their produce they were not stating actual facts. Professor Riddet stated the actual factors that have caused the fall in prices. The main one was supplies. It would have been tragic, he said, if the fall in prices were attributed to the marketing system and no eognisance taken of the supply position. It would also be tragic if the propaganda of a minority of producers and merchants succeeded. He suggested that New Zealand rniglit be able to eircumvent the pilingup of stocks for the London market by producing butter all the year round instead of confining her activities to a season of the year. If production were more uniform throughout the year it would not be necessary to hold such large quantities of butter in store, the market would be more buoyant and merchants would not be influenced by the knowledge that there were large reserves in hand. There would be less incentive to speculation and the butter, because it would not have to be kept in store for long periods, would bo fresher when it reaehed the consumer. The people should not break down the marketing system merely because it was a Doveranient system. It deserved a thorough trial, not over a few months only but over a period of years. It was only natural that any change in the marketing system would be opposed by a few disgruntled individuals, but these individuals were no good to New Zealand as they were generally out for themselves alone. "The agents doing our business are giving us the best service possible," coneluded Professor Riddett, "and I hope that, instead of trying to direet a market 12,000 milds away, crities will show sanity and judgment in their re- | marks."