MARKETING DAIRY PRODUCE.

Shannon News, 28 September 1923, Page 3

MARKETING DAIRY PRODUCE.

THE LONDON* END. in the Century Hall yesterday -ai-.terno-on. Mr R. E. Ellison, mariaging director of the Ne.w Zealand Producers’ Co-operative Marketing Association, and Lonaon manager oi the National’ Dairy. Association, addressed a meeting ol dairy fanners on the activities of those organisations in London and on matters connected with the dairying, industry generally. Mr S. A. Broadbelt, chairman of directors of the Leyin Dairy Co., presided and there was -a iair attendance.

Mr Ellison, in opening his remarks said that the reason ior the formation of his organisation was the fact that many people in this country felt that better results should be obtained from the sale ol New Zealand produce in England. The - result of the efforts made .by lliimself and leading members ot the dairying) industry was that the. National Dairy Association was formed to market produce on ; the co-operative principle. Many of those present might not be aware of the fact but it was not an easy thing to build up a- selling -organisation such as they had to-day, without experiencing a great deal of -opposition from both, the English and colonial organisations. He was thankful to say, however, that despite the difficult years “which followed the war years, .rapidly fluctuating markets, -and opposition, they now had an organisation that had up to date given good results-to those who" had sold their produce through it, -and would give better results in the future. A question that was. often discussed was the forward selling of produce. His Association was formed primarily to- sell produce on commission, but they had had to- do. a certain amount oi this work. A thing in connection with this forward selling which was not generally understood was that these purchases by the Dairy Produce merchants were generally made on a selling basis. These people seldom bought beiore they had iound their market: they worked on a basis ol a lew shillings per cwt., and this produce was in turn passed on from the second purchaser to a smaller fry. There were occasionally times when the forward buyer found that, he was unable to pass this produce on—times when the second man wa,s unable to fulfil his -obligations. Generally speaking, however, he merely bought on the clear basis already explained. Another thing in connection with consignment to the British market was thrit all sales had to be made oii a c.i.f. basis. The produce went Home and ft was -only on arrival in London, that the buyers took oyer, and paid against documents. This explained why dealings did not always make' returns as soon as: was expected. On a good market, purchasers would take a three to a six months’ supply, but always on a c.i.f. basis.

Another point whicir mignt be mentioned was the diversity -oi speed in the steamers which carried produce from New Zealand to- the Home Markets.’ Although these might, leave at' different times, it often happened that, several ol them arrived in London at the same time, resulting in the market being flooded, and consequent reduction in price. liTregard to, the fluctuation, in price in even -one shipment of produce arriving'' on the London market, this was explained by the trine spent in discharging. If, lor instance, a shipment arrived on a falling market, ana as was quit© possible, ten days were spent in discharging, the first of the produce discharged would naturally bring a better -price than the last of the consignment. On a rising market the reverse would naturally obtain.

The question of shipping was one oi pa,i amount importance to the dairying! industry.. The time might, come when New 'Zealand produce could be. taken to England in a fine of steamers each taking the same time ( ior the trip. The present state oi affairs which resulted at times 'in several shipments arriving at the same time was not a healthy one, and now that there was a tendency to make til© industry an all-the-year-round one, it was to be hoped that better arrangements could be made. There was no doubt that, the. Continental suppliers got much of their advantage from the fact that they could supply the English market with regular shipments. A thing which puzzled producers at. this end considerably was the rapid fluctuations of price on the Home market. To understand this it was necessary to know somtthing of the system regulating the British market. There were in the dairy produce business at Home several large concerns: these people did not buy their requirements from day to day,, but came on the market at certain tunes. When they did begin to buy it was generally a signal to the smaller fry to come on the market also, and it moved up until a price was reached at which it was no longer -possible jo make sales. Lack of demand would then "send prices back. '

Markets had changed considerably from pre-war days, when a fluctuation of 8s over a season was about the limit. Now a similar amount was sometimes experienced in a day. All This made marketing more difficult, the whole tone of the industry being now that of Hie stock exchange, instead of as previously, simply a case of supplying' a normal demand for produce.

As far as his owai Association was concerned, it had had in common with oilier organisations, a pretty, strenuous time. This year he was pleased 10 say that they had managed to hold their own as far as prices were concerned, with the best organised concerns in Britain. He was a firm believer in the co-operative system of marketing: he did not hope that for some years his Association would get the whole of the produce of. the country but everv year the business was growing, anti" it served the very important purpose of fixing definitely the standard of price ruling on the British market. Prom the . prices which they were able to obtain suppliers in New Zealand to other concerns were able to gauge exactly how

they were being treated by the merchants at Home. What the future held for the dairying industry it would be unwise to prophesy. In regard to cheese he was of t.he opinion .that the consumption in England was growing, while at the same (time it seemed probable that Canada. would find a market within her own shores in the future, for more and more of her own produce. The position on the English market which she vacated would be taken by New Zealand produce. He was greatly pleased with the quality of the New Zealand cheese which was arriving in England and the fact that the supply was growing was also having an effect. No matter how high the quality was, it was necessary to have a large distribution in order to properly advertise the country. The greater the advertisement the greater became the demand and in this connection an advertising!, campaign would be of value. His organisation had conducted one for some time with good results, and everything, including the -visit of a New Zealand football team during the coming year would be valuable. , ‘■ v

Referring to the ports of Bristol. Manchester and Glasfow, Mr Ellison said that whilst it was desirable at times to send certain shipments to these places, London was the place at which the price of produce was fixed for the whole country, and in any of the ports referred to merchants' ex-, pected to get. produce a.t the price ruling in London. There was also more danger of flooding the market at these smaller places, and he had known shipments sent to these outlying port® having been afterwards transferred to London for sale. The many causes which had *led to London being the centre of the industry were difficult to ‘explain, but (they were undeniable. Moreover, the selling organisation was the result of long) building up, and it was advisable mot to interfere with it too drastically until it was certain, that a better one was found. The question of the development of the dairying industry was one.of interest. Shortly before leaving England he had had an interview with the representative of a Russian firm, and it might surprise some of them to know ini view of the reports from that country, that' already large supplies of Russian butter was coming on the English' market. It was quite probable tftat before long, Russian butter would come into prominence. Along the Baltic dairying was being developed rapidly with the assistance of English capital, and with the increase in Argentine and South African supplies the market might go lower (ban of late unless a solution of the Ruhr and other Continental troubles were found, which would enable Europe to absorb, as under natural conditions, the bulk of the Danish and Dutch supply which was at P r esent coming l almost exclusively to land. For the present, however, he had no doubt that prices were safe, and would continue so for some tune to come. (Applause). . ... \ .Several questions were replied to .satisfactorily and the meeting, concluded with hearty votes of thanks to the speaker and to the chair