HONEY CONTROL BOARD

New Zealand Times, Volume LIII, Issue 12605, 16 November 1926, Page 3

HONEY CONTROL BOARD

REPORT ON ACTIVITIES SUCCESSFUL ORGANISED MARKETING “HIGHLY SATISFACTORY” v RESULTS The Honey Control Board hereby issues the following report:— The first meeting of the board was held on February 25th, 1925. The board this meeting assumed limited control over all ho.ney exported to the United Kingdom and Europe, this control requiring that such honey should be shipped to and distributed by one agent only. Messrs A. J. Mills and Co., of 14, Tooley street, London, S.E. 1, were appointed the board’s agents for this purpose. The action of the board wa6 designed, in so far as was expedient, to carry out the wishes of producers expressed in their request for a Honey Export Control Act and their subsequent request that the Act be brought into force. The reason given in asking for control wa6 that the system of organised marketing which had voluntarily been followed had achieved considerable success. This had been brought about m the specialising of New Zealand honey, first by packing only a definite standard of quality, second by retaining its identity in its retail distribution, third by keeping below-standard qualities from table consumption, and fourth by extensive advertising and publicity work. This system of marketing has resulted in New Zealand honeys being sold at a considerable premium over competitice honeys, a portion of which premium, in the ordinary course of events, being absorbed in the payment of advertising and distribution costs. WHAT PRODUCERS WANT The control taken has for its purpose the carrying out of the expressed wishes of the producers to have this system of marketing protected, the disorganisation of which could otherwise be brought about by shippers selling outside the organisation ana creating a position whereby some would be paying all "the costs of securing the enhanced price, while others would be securing Hie full benefit of those prices, -at the same time paying nothing towards the costs of maintaining the same., . . * The Control Board does not. handle accounts, the shipper dealing direct with the agent. The costs of maintaining and extending the market are distributed over all consignments to the extent that advertising charges are spread equally over all sales, the exepnaitUre of one year being snread over the sales in that period, ana also the costs of distribution, and control of distribution in the 5 per cent, qpmmission allowed to tho agents. Exporters are financed as required by advances made by the agents' New Zealand representative against documents. Limited control has operated over the 1925 and 1926 export seasons. The producers who were exporting under a voluntary control through their own association were in no wise affected when control came into operation, they having borne the costs of organised marketing throughout. The spreading of advertising charges and the extra commission over all consignments, however, increased the costs of marketing to shippers outside of the association to that extent. The number of shippers, therefore, affected by control are" very few. In 1925 they represented 2.8 per cent, of the producers exporting, tneir honey representing 4.6 per cent, of the whole. In 1926 the figures were 1.89 per cent, and 2.19 per cent., respectively,, . , HIGH PRICES REALISED That organised marketing has gained a premium for New Zealand honey, and that, therefore, the costs of maintaining the same should be equitably distributed is shown in the following figures:— Sales of New Zealand honey for August were made at from 60s to 80s per cwb Quotations for the same month for Canadian honey are at 40s to 56s per cwt, Californian at 47s to 58s, and Jamaican 42s to 495. Previous to organised marketing New Zealand honey did not. realise equal to Californian or Jamaican, While a considerable portion of the premium obtained has been absorbed by advertising charges, the balance represents- a considerable margin on the returns of our competitors; The total exports for 1925 amounted to 785 tons, some 265 tons more than for 1924. The export for 1926 was 550 tons the reduction in the amount being due to an adverse season over positions of the Dominion. Sales of 1924 season were completed in October, 1925. On October 31st, 1926, only 99 tons of 1925 honey remained unsold. This position is venr satisfactory, as the export for 1925 made it necessary to find a market for over one-third more honey than for the previous year. Sales, therefore, from October till October had increased from 517 tons in 1924-25 to 686 tons sold over the same 'period for 192526. With the lesser export for* 1926 there should be no difficulty in clearing the whole of our stocks on hand in the ensuing twelve months. SATISFACTORY SALES While tjie economic conditions in the United Kingdom have of late been unsatisfactory and . have considerably affected the prices of Dominion products we have been able up to the present to maintain our prices, and make satisfactory sales. This is highly satisfactory, especially so as Northern Europe has for the second season running had exceptionally good crops, and Southern California's crop is 140 per cent, of the previous year, and their local price is running one to two cents lower than last year. Canada on the other hand i 4 reported to have only 70 per cent, of the crop of last year. Business in Germany is developing satisfactorily. Since July last some 54 tons have been sold, all in retail packages. This progress in the introduction, of our honey into Central Enrope is satisfactory in view of the fact that New Zealand honey pays a duty of 40 inks, per 100 kilos, or roughly 20s- per cwt. In conclusion, the development of organised marketing so. far as the honey producers are concerned, can be considered satisfactory, and the board is justified in primarily taking jsteps to assure that the advantage gained will not be dissipated by competitive selling. It is now proposed that the hoard investigates the marketing conditions with a view to ascertaining if costs of marketing can be reduced while at the same time retaining a proportionate amount of the advantages gained and also provide for the disposal of our increasing production. For and on behalf of the N.Z. Honey Control ’ J. RENTOUL, Chairman.