BUTTER MARKETING

Hokitika Guardian, 10 April 1931, Page 5

BUTTER MARKETING

PROBLEM IN GREAT BRITAIN. MARGARINE MENACE. In the course of a review of the marketing sitUKtjon for New Zealand dairy produce m London, Mr M llnam Guodieiiow, when addressing a conference ol committeemen ot the main centres of the New Zealand Co-operat-i\o Dairy Company, expressed the opluii tliat the great disparity in the prices of the Dominion and Danish butter and ol New Zealand and Canadian (inv.se was tine, mainly to inedii-e.i-m m.irKeting on the part of our primary producers. New Zealand. lie said was "paying the penalty of 'disorganised selling against organised buying.’’ About 30 agents were now selling New Zealand produce 'lor about odd ind'.'pendent co-operative factories, ami the Ing combines to whom they sold were able to work one against the other in a manner that resulted in prices being lower than would otherwise hav ( . been received. Fach agent was out to beat the other and therefore eared nothing ano tit maintaining the stability oi the markets.

.Mr Good fellow considered tliat more of the New Zealand produce should be diverted from Lolidoii to the Midi amis and the "West of England. 'The proper Was to do that was to have selling floors in 'different centres to ensure prompt delivery to the retailer. Mr Good fallow pointed out that the Danes , scarcely touched the London market, sending their butter to other centres where prices were better. The consumption of margarine in liitain was very little behind that of butter, ihe speaker said. The margarin business was now controlled mainly by a huge combine and that was a powerful factor in the dairy pro diice business. That combine controlled about lillliO shops, and there was a danger l 1 1 ot it wood move prices up and down to suit its business. Mr Goodlellow said tho inicter blenders in Britain bought nearly all the foreign butter other than that from Denmark, mixed a little fresh milk with it an put it up in a most attractive way. The grocers made a good profit on the blended butter, and pusher! it accordingly. Mr Goodfellow referred to the importance of the trade in butter put up into pats. They already had a pat factory in London, hut to push the business in the North it would lie necessary to open branches in .Manchester and Glasgow.