DISPOSAL OF PRODUCE.

Taranaki Daily News, 19 August 1921, Page 7

DISPOSAL OF PRODUCE.

A DIFFICULT PROBLEM. THE SHIPPING QUESTION. ■ Touching on the prospects for the coming season, Mr. Jacob Marx (chairman of directors of the Mangatoki Dairy Company) said, at yesterday’s meeting'of the company, that the question of the disposal of their produce was a difficult one. Last year, he said, some companies had received offers to sell, but his company had not, and some small companies had sold. It was the first year that factories that consigned had come out at the bottom of the list, whilst those that sold had come out on top. Those that made butter and casein had done very well, whilst those that made cheese and butter part of the year were fairly well off. As far as casein was concerned, Mr. Marx did not think the prospects in South Taranaki would be very good during the coming season, but the directors of dairy factories would have to look around and make arrangements for the following year. At present things were still unsettled in Central Europe, and there was a decided lull in the deinand. It was difficult to say whether cheese or butter would be the better proposition, or whether it would be better to sell or to consign. They might be tempted to accept an offer that might be got to produce 2s per pound butter fat. The whole thing, however, was a riddle, of which they would know more in ten months’ time. He had not heard of any sales so far this season. The whole question depended on the purchasing power of the people at Home. Replying to Mr. Astbury, the chairman said that the company had sold on one occasion previously, and had done well, but they usually consigned. He said that last year’s results were nothing to go by, as the year was an abnormal one. When the Imperial Government' offered 2/6 per pound for butter the directors considered that too good an offer to refuse, and turning to butter, had put a few pence per pound above the cheese price on their butter-fat. The whole thing was a gamble. Shipping, moreover, had been very bad, as They still had 740 crates on the water that were twelve months old. It now took a ship six weeks to load, and six weeks to unload, so that whereas they made two to two and a half trips Home and back previously per annum, they now barely made one. Freights also had increased. Butter was formerly 2/6 per pound, and cheese 1/2 per lb, whereas the latter was now Is 3/8d per pound. The freights had to be paid before the ship left New Zealand. A supplier asked if the directors would like a recommendation on the question. The chairman said that a recommendation would not be of much use. A supplier: A recommendation that you sell at 1/- per pound. The chairman: We won’t need any recommendation for that.