Dairy Produce.

Horowhenua Chronicle, 20 June 1910, Page 4

Dairy Produce.

THE SOUTH ISLAND SELLING SCHEME.

CONDEMNED BY NATIONAL DAIRY ASSOCIATION RJSPREiSENTATIVE.

"An (interesting and" retrograde movement," is Mr R. Ellison's desortpti'on of the South Island Dairy Association's scheme for the holding of fortnightly sales of dairy produce at Dunedin and InvercargiH. Mr Ellison is the London representative of tibo Nation.! Dairy Association, and lie lias sent'out a lengthy condemnation of the new scheme in a letter to the editor of -the Ota go Daily Times.

"My experience during the last few months in Tooley street," writes Mr Ellison, "has led me to the belief that a very much improved condition of things could bo brought about at this end if the factory .system of co-operation was carried a little further; but so long as 50 per cent of our New Zealand produce is sold right out to speculators, just so long Avill the Now Zealand dairy farmers' produce he subject to the hundred and. one influences which 'bull' and 'bear' the market. If it bo contended tlialt fortnightly sales will got nearer to the value, I contend that selling on consignment gets still nearer the actual value. A factory sells i'th output for the season. The purchaser has made his one deal and stands to it; if he is purchasing every fortnight ho will have so many more chances of getting even on his purchases during the season." The longer the factories retain an interest in their produce ithe nearer 'they get to the British consumer, and. therefore, the nearer they approach to the value of their goods. "Take, for instance, the 'position this season with a market for buttei such as we have bad. What English firm could have afforded Ito buy butter with prices as they have been? It would have been impossible to sell on the proposed fortnightly system, except, prolbabl.v, for a few weeoks in the season. T.f it had been possible to find purchasers 'for butter at 110s to 112s. c.i.f., for December shipment, the factory selling at this figure would have experienced a, heavy loss as compared with consigning, the lass to the factory being ibetween 10s and 12s per owt. This same condition of tilings has applied night through the season. For instance, take the period when our butter reached 128s, 130s

ft would 'lie an impassibility to got a price bid on fortnightly selling that would 'bring business. The factories would absolutely refuse to listen to prices based on the possibility of the market six weeks ahead which, as a matter of fact, would be somewhere about 108s to llOss, c.i.'f., or possibly loss. The factory would have no other alternative but to consign—with what result? Tts produce would go into the hands oi some firm that would simply sell the shipment and have done with it, knowing full well tha't it would get no more of the same brand foi months. No attempt could be made to create a demand or specialise with it, no matter Il'ow good the ffita'lity. Ono of the secrets of handling butter outputs is ot place them in itlhe same channel and work up a connection. To sell one week ayd consign the next would rob a factory of the benefit which is derived from the policy of creating a demand for the special brand."

Continuing, Mr Ellison says that a good deal has been made of 'the fact that a rpiantity of the Canadian, Siberian and Danish butter and cliecse is sold, and n'ot consigned. This, he contends, does not affect the position, as Canada and Siberia are only a few days away from the mrket, and Denmark only 18 hours. Australia sends between GO and 70 per cent of its butter on consignment, and all the Argentine butters are handled 'on the same system.

Mr Ellison concludes with the following advice to 'the producers of New Zealand butter and cheese

"Send it alone; to London on open consiemont without reservations oil any kind, to a firm in whom yon have faith, and .make a name for vour lira ml. Tf von are not- saitisfiod to |>1 aco your trust in any particular commiission house, Appoint •or send someone to keep an overflight at this end."