N.Z. DAIRY COMPANY.

Hauraki Plains Gazette, Volume XXXIV, Issue 4556, 27 April 1923, Page 1

N.Z. DAIRY COMPANY.

BIG SALE OF BUTTER. The sale of a large parcel of butter totalling 120,000 boxes, or 3000 tons, to America was dealt with by Mr W. Goodfellow, managing director of the N.Z. Dairy Co., Ltd., in speaking at Waihou recently. Early this, season, he said, the directors of the company received information from Mr J. B. Wright, the London manager, stating that 25,000 tons of butter would be available in London in the month of December, of whicn quantity 11,000 tons was New Zealand make. The directors considered the position,, and thought that it was imperative to relieve the London market of some portion of the heavy shipments being made from this country in the months of December, January, and February. Communication was entered into with America, and although the best price available at the time 4rom London buyers was a little over Is 4d f.o.b. Auckland, the negotiations with America were so far successful that, the price was eventually fixed at Is sd, f.o.b. Auckland, which secured a return to the supplier of over Is 6d per lb butterfat. This sale was consummated, said Mr Goodfellow, only after very full consideration. By it we hoped to secure a better return for our heavy shipments of November butter when they arrived in London, and our expectations were realised, because within ten days of the sale being known the price on the London market appreciated 2d a lb, and that benefit was secured by the shipments we had coming forward. The directors realised that some of our competitors might gain even more than -ourselves by the deal we put thrpugn, but we- also would benefit, and we could not allow that consideration to stand in the way of the transaction. ft was a condition of the sale that Ameiica should consume all that, butter within her own borders, but in spite of this it was now learned that part of the quantity sold was being shipped to England. The legal position in connection with this breach of faith had been gone into, but it was not considered worth while pui suing the case the company had because of a possible reaction on future business. Definite steps had been taken, however, to guard aaginst any recurrence. Hitherto, business with Ameica could only be done on a cash f.o.b. basis, but arising out of this experience, Messrs Lovell and Christmas, one of the company’s agents, had agreed to open an office in New York for the handling of the company’s produce on consignment. Mr W. Lovell and Mr J. B. Wright, the company’s London manager, were at present in New York finalising arrangements.