The Guardian And Evening Star, with which is incorporated the West Coast Times. THURSDAY, AUGUST 28, 1930. MARKETING CONTROL.

Hokitika Guardian, 28 August 1930, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. THURSDAY, AUGUST 28, 1930. MARKETING CONTROL.

An interesting bulletin prepared by the Department of Economics of Canterbury College, has ’ been issued by the Canterbury Chamber of Commerce regarding the influence of control schemes on ,the marketing of primary products. The relative {prices for wholesale and retail were compared at Home lately, arid it was found that while wholesale prices dropped 13 per cent, retail prices fell only per cent. The disparity in prices indicated that different types of goods and services do not move uniformly, and that is typical of most countries. Price control ns a rule fails to take a long term view, and the effect cannot he judged fairly on the public welfare which is the chief cause for failure. In some instances State support was given to the market control, but that was not any guarantee of' success, for the levelling effect of supply, and demand invariably creeps in and upsets the human calculation. So far as New Zealand is concerned, control of prices was not greatly practised. Tt was attempted by the Produce Control Board, but it was no doubt fortunate that organisation was short lived. The Control Boards in New Zealand now seek to obtain better marketing in availaide openings, with greater economy in production, reducing transport costs, and with a better system for placing the goods on distant markets, including mass advertising and other activities on the. business side to secure the bosh price results. Control along these lines is wise. Tar it ensures n better product being delivered at a distant market at the cheapest rate and in the best condition. But prices cannot be regulated,.-,though it must lie encouraged by the better system of marketing and the condition and regularity with which the goods reach the buyers. As produce is the great factor in the prosperity of the coun-

try, the standard of living generally depends upon the all-round success of the marketing. Quality is a. prime essential to command the best value, supported by quantity. With a falling price due to many causes- the drop must be met to the best advantage by low cost methods of production. This means the abolition of- waste in both public and' private enterprises and a proper organisation of the facilities available. We have in times past referred to methods whereby dairy produce could he- handled and marketed on a much better basis to the farmer supplier under a. scheme, of centralisation which is happily possible here were there to he a practical .fusion of dairying interests And as"tlie months go by and prices continue not to improve, this advice remains sound and the practicable course for the suppliers to follow if they desire to get the best out of their product. This move would be part of an effort to secure greater efficiency, and means that the better standard of prices in the past (for butter fat would be less distant. A scheme 8n the lines referred to wouio mean a degree of minor control in pro-* duet ion and marketing, and it must be palpable to those who give such a project serious thought, that in the light of the present drop in prices it is the surest and safest course to meet the extraordinary position. The kind of control possible would be a marshalling of prices, and so organising production as to eliminate the recurring costs now prevailing in so. many separate factories, and by one stroke make an immediate saving worth while. The benefit to l>e derived from marketing the produce would also be of moment if the commodities wero disposable in one line as against the many interests now prevailing, A fresh dairying season will he- here very shortly, and the market Is so disoiv iranhsed that under the former conditions, with the general outlook, n lean time must ensure for many. As it.is possible to avoid that by combination and organisation, ‘those responsible should take serious thought of the position and determine how far they are prepared to go in a general effort to security unity of action whereby the position may he retrieved as far as central organisation and production will permit.