SOLD AS CANADIAN

Sun (Auckland), Volume IV, Issue 1002, 19 June 1930, Page 12

SOLD AS CANADIAN

! NEW ZEALAND BUTTER AND BLENDING IDENTITY OR GOODWILL? When Canadian importers blend New Zealand butter with inferior quality produce and sell the blend under their own brands, should New Zealand producers insist on the marketing of the produce of this country as "produced in New Zealand." or should it consider the goodwill of the buyers? Two sides to this debatable question were heard before the council of the Chamber of Commerce this morning, bur. the chamber thought so many points in the subject required . serious investigation that the question was referred for report from the Exporters’ Committee. Mr. F. H. Leonard, of the Auek- , land firm of dairy produce merchants, j Leonard and Son. Limited, appealed } to the chamber not to agitate against | the methods of the Canadian import- | ers. but. in a letter from Amalgamated j Dairies, Limited, the managing-direc- ' tor. Mr. W. Goodfellow, said that firm ! had insisted on the packing ot‘ the butter on its own brand. The question has come before the chamber following the action of a Canadian, Dr. V. F. Connor, who. ! through a “sense of disgust” at the methods practised in Canada and an- ! xiety for “decency in business,” for- ; warded a leading article from a Nova : Scotian newspaper, the “Eastern | Chronicle.” in which the blending of j New Zealand butter and the market- ! ing of it as Canadian was freely dis- | cussecl. In a letter to the chamber, Mr. Leonard said the amount of duty I Canada proposed to place on New Zealand butter was three cents, and full advantage should be taken of the fact that negotiations were still proceeding to secure, if possible, a continuation of the present duty of one cent. New Zealand was in a strong position to preserve this arrangement. He was aware that Canadian traders sold New Zealand butter as Canadian, but New Zealanders should remember that their customer was the man first to buy the butter. What happened to the butter after the purchase was a question for the Canadian consumers.

PROPAGANDA FAILS There had been the experience during the present season of the disastrous result of the bad handling of newspaper propaganda in Great Britain, after which some of the blenders, the best customers of New Zealand, were giving preference to other butters, whose producers did not associate themselves with the agitation inspired by some New Zealanders. An effort had been made to have a Bill passed in the House of Commons making it compulsory to specify the contents of blends, but the measure was thrown out. Mr. Leonard strongly advised the chamber not to interfere with the position in Canada. Goodwill had to be cultivated and the volume of trade and the prices received would not be improved by agitation. The reply from Amalgamated Dairies said the practice was more or less general in Canada, but that firm had taken a definite stand, by insisting on packing under its own brand as New Zealand butter. The merchants at first strongly objected, but acquiesced, rather than force trade to the retailers. Substitution would take place so long as New Zealand sold butter in bulk.

Mr. A. G. Limn thought there should be insistence that the butter should be sold as New Zealand, if possible. By lowering the grade of New Zealand butter by mixing it with inferior produce, would the goodwill possessed by New Zealand not be transferred to Canadian producers, at eventual cost to this country?

Mr. Leonard informed the meeting that a higher price was paid in Great Britain for blended butter than for New Zealand. If some New Zealand butters were not blended, they would not bring the prices they did.