DAIRY MARKETING.

Shannon News, 23 July 1929, Page 1

DAIRY MARKETING.

NEED OF ORGANISATION

QUALITY OF THE PRODUCE

Overseas marketing and- criticism of New Zealand dairy produce in comparison with that from Denmark were discussed by Mr. W. Grounds, chairman, in addressing delegates to the sixteenth annual North Auckland Dairv Conference.

Mr. Grounds complained of the failure of tiio Daily Control Board to exploit the Home markets. He stated tliut he had made independent efforts towards this end, and they would probably shortly bear fruit in the formation of a national organisation to further 1 the marketing of produce. This was a vital necessity to the industry, which could not afford to neglect it longer. The general increase in dairy pro, duction had been phenomenal, and North Auckland had not been lacking in improved output.: The possibilities of this district were immeasurable, and predictions that it would be one of the ■largest producers of dairy products within the next ten years were probably not far wrong. Production had been greatly assisted by the use oi fertilisers, and profits now being made on land' regarded as useless some;time ago indicated the possibilities of improved methods. Herd-testing had also gone far to -aid the standard of output. Danger of Buying Combines.

" Good prices need to be regarded carefully by those concerned in the guidance -of the industry, ’ ’ Mr. Grounds added. "It is more than probable that increased priees will be inclined to lull people into a sense of security altogether unjustifiable when a wider survey is made of the general position. There is no doubt that large buying combinations have been formed during the last few years, the chiqf design of these combinations being to handle more efficiently the production of' countries such as ours.

"Many of you arc aware of the extreme anxiety felt at a certain period of this.year by those who did not consider the probabilities of the market and the' ultimate result following high prices paid in forward buying during the earlier months of last year. Fortunately for us a combination, "of circumstances turned the scale and made the season highly profitable for producers generally, as soon as circumstances arise for the utilisation of powers acquired by these, combinations the industry is almost, certain to be made to suffer as a consequence.” Referring to criticisms of New Zealand butter made by Sir Thomas Cle-. meats, Mr. Grounds said that Toolcy Street experts who also visited New Zealand recently differed .from that gentleman’s viewpoint. It had to be remembered that dairy produce from New Zealand and Denmark, the country cited in the comparison, was ’widely different. Danish butter sent to London was made for immediate consumption, whereas the New Zealand product, had to be made to stand up to a minimum of eight weeks’ cold storage necessary for transportation purposes. Building Up Special Market.

Because of this need for cold storage New Zealand had evolved a type of butter which would meet, the requirements placed upon it. It avas proved that Danish butter depreciated to the .stent of about 10s. per • cwt. Avhcn placed in- storage for any length ol time. New Zealand teas building up a special market fur its butter in England, and those who required it would be willing to pay a premium for it. Similarly,-those, more especially in the North of-England, who looked to Dennark for their supplies, would pay for it in preference to the New Zealand product in order to maintain a continuity of supply.

Anyone suggesting that we should 1 endeavour to secure the superfine llstv air associated with butter, made for immediate consumption should renicninor that it has to endure the freezing ■ eeessary' for transportation to Great Griiain,” Mr. Grounds said. “ I am -tot saving that improvements cannot be made, but the general level of Now Zealand butter is substantially ahead of Avhnt it was in the past.' ’

The speaker complained that nothing had been done by the Control Board to handle marketing during the past year. The board certainly continued its work in supervising cargoes and arranging insurances, as ' troll. as certain other activities undertaken at its inception. “Seeing that the important question of marketing has been sidestepped, and as I hold the view that the organisation of marketing is tire roost essential necessity in the industry, I have been engaged upon a number of inquiries with a view to finding a satisfactory basis for the development of an alternative to the control system so nearly established two years ago,” ho said. “Hopes of the board undertaking marketing on behalf of the industry urged upon it Dvo years ago seem to be receding more and more into the background.

Consolidation of Efforts. “It is essential that' efforts should be made to consolidate the efforts of producers with a view to securing organised marketing. The majority of producers, lulled into a sense of false security, are not conscious of the fact that we are walking, perilously near

the edge of a precipice, over which we may be thrown by the force of circumstances unless some efforts arc made toward consolidation.” It was hoped that within a comparatively short-time the foundation would have been laid for the development of a national organisation providing for the vital necessity of marketing. Summing up the results of the season Mr. Grounds said that it had been a good one, and farmers had every reason for looking forward to a period of further prosperity. .