DAIRY MARKETING

Sun (Auckland), Volume III, Issue 913, 5 March 1930, Page 10

DAIRY MARKETING

N.Z. SUFFERS THROUGH LACK OF COMPETITION MR. W. GOODFELLOW’S VIEWS From Our Oxen Correspondent NEW PLYMOUTH, Today. The tendency for competition to diminish among buyers of dairy produce on the Home markets was given as the main argument in favour of orderly marketing methods when Mr. W. Goodfellow, of Amalgamated Dairies, and Empire Dairies spoke last evening at a meeting of Australian farmers. The conditions of trading, particularly in Tooley Street, had undergone rapid change in the past few years, said Mr. Goodfellow. Five years ago considerable competition existed between certain large groups. Today large groups purchased dairy produce in enormous quantities under definite amalgamations. The Margarine Union, since its amalgamation with Lever’s, possessed a capital of £27,000,000 and was easily the largest buyer and distributor of New Zealand produce. In addition there was the Co-operative Wholesale Society, organised expressly to supply cheap food. Its capital was £106,000,000, organised for buying. A third group consisted of small growers combined to buy and a further move suggested had been that seven Tooley Street firms combine with the Margerine Union. If that eventuated it meant the elimination of competition. Instead of competition as in the past, the three main groups worked more or less together, said Mr., Goodfellow. For January Britain imported 32,000 tons, of which 17.400 came from Australia and New Zealand, in that month alone more than half Britain’s imports. If the shipping was done in equal quantities each month the percentage, of course, would be less, but in months when our bulk shipments were going out the percentage was greater than half. It was certain that if Amalgamated Dairies could be entrusted with the marketing of 50 per cent, of New Zealand’s export of butter and if Empire Dairies could secure 50 per cent, of Australia’s export, then something very sLibstantial could be done to improve the position and influence the organised buyers on the market.

As regards cheese. New Zealand sent more than half the total. In January New Zealand sent 13,700 tons of the 16,891 imported into the United Kingdom. Therefore, during the months when New Zealand shipments were heavy the Dominion was the major supply influence. If a substantial quantity could be marketed through one channel, then substantially better prices could be obtained on a weak market. He mentioned the "weak market” because strong market selling was not difficult and the demand covered the position, but on a weak market the position could be improved by better marketing and controlled marketing. MONEY IS SCARCE REVIEW OF AUSTRALIA’S FINANCES , REDUCTION OF LOANS SYDNEY, Tuesday. In the course of an address to the Nationalist Council the State Treasurer, Mr. B. S. Stevens, said a survey of the financial and economic situation revealed the following outstanding features: An adverse trade balance of unusLial proportions; the inability of the Commonwealth and State Governments to borrow abroad and locally the amounts hitherto raised; a difficult banking position; and increasing public expenditures. Australia had £50,000,000 less to spend than last year. The estimated loan expenditLire for the current financial year was £30,000,000, a reduction of 30 per cent., and for the forthcoming financial year that programme would probably have to be reduced by a further 20 per cent. SOUTH WALES COALFIELDS IMPROVED TRADING RESULT British Official Wireless f RUGBY, Monday. Tlie trading results of operations on the South Wales coalfields In the three- months, November, December and January last, were the most satisfactory for any period since April, 1924. The credit balance was 9.94 d a ton as compared with a debit balance of 2.43 d a ton in the preceding quarter. The Improvement in the output over the corresponding period a year ago was 14 per cent. For the 12 months ended January the output was 11 per cent, greater than in the preceding 12 months. The exports for the quarter were IS per cent, higher than for the 12 months before and those for the year were 16 per cent, higher than for the year ended January, 1929. Fart of the improvement in the position is attributed to the effects of derating and to freedom from labour troubles.