The Daily News. WEDNESDAY, APRIL 26, 1922. MARKETING DAIRY PRODUCE.

Taranaki Daily News, 26 April 1922, Page 4

The Daily News. WEDNESDAY, APRIL 26, 1922. MARKETING DAIRY PRODUCE.

The leaders of the dairying industry in the North Island are initiating a mov.ement to improve marketing methods, and the first of the meetings to be held throughout the country to consider the proposals took place at Hawera on Monday. Mr. A. Morton (chairman of the National Dairy Association), Mr. T. C. Brash (secretary of the association), and Mr. W. Goodfellow (managing director of the New Zealand Dairy Association) explained the proposals, which were unanimously approved by the meeting. The scheme as outlined follows broadly the lines of the meat pool. The exportable dairy produce is to be compulsorily pooled (power for the purpose being sought from Parliament), and controlled by a board with representation at Home, where the produce is to be marketed, with the assistance of the merchants of Tooley Street, in such a way as to ensure the obtaining of full market value, much as the Danes are doing. The idea is to stabilise the markets by preventing the congestion which this season brought down the prices to such a. low and unpayable level and the speculation which at times has a similar prejudicial effect on prices. Efforts are to be made to eo-operate with both Denmark and Australia in marketing the produce, the aim being to see that both producer and consumer are not exploited, but obtain fair value according to the state of the market. At present there is no systematic distribution of New Zealand butter or cheese as such. With the aid of the Tooley Street organisation it is hoped to market the New Zealand produce as New Zealand, and to embark on a systematic advertising campaign. This step cannot help but prove advantageous to the producer, for there is no reason at all why there should be the present marked disparity in the prices of the New Zealand and Danish butter, seeing that the Dominion’s is acknowledged to be quite equal in quality to the Danish. The latter, however, is sold as Danish, its quality being known to consumers by consistent and effective publicity. New Zealand butter often loses its identity, being retailed as English or blended with inferior butter. We have always regarded this as a great weakness, and one difficult to remedy whilst the present selling and distribution methods prevail. Of course the Danes arrange for their butjpr to be on sale throughout the year, whilst New Zealand’s is only seasonal. The promoters of the pooling scheme maybe able to show how this difficulty can be overcome. Another suggestion is that by means of a combination like that proposed more advantageous freight contracts may be arranged. The meat pool has already been responsible for a. reduction in meat freights, and it is probable that the proposed dairy produce pool may be equally successful. One thing is certain, and that is the present charges and freights, which are double those of 1914. must materially come down, as they are quite out of line with the country’s income from the sale of produce. Further, there must be an end to the delay in the discharge of dairy produce at Home, a delay which Mr. Goodfellow showed had cost his company in -espeet of some of the earlier shipments no less a sum than £128,000. Probably if the produce were unloaded at other ports besides London the delay and loss would not have occurred. The pool advocates suggest the development of other markets besides London. This can be done by a combination; it is difficult, however, under present conditions. On the whole the scheme is one that merits the closest attention of all engaged in the great dairying industry. The collapse of the market, this season, which brought loss and trouble to a great many pro-

dueers, has had the effect of turning attention to the whole system of marketing and distribution, which, it will be admitted, is unsatisfactory iu many essential respects, and the present proposals are the outcome. These proposals may not be perfect, but there can be no question but that they are in the right direction. The proposals are entirely different from the scheme suggested some time ago to link up with the C.W.S. at Home. We strongly opposed that scheme, for we could not see that it offered any improvement on the existing arrangements, but rather that it contained elements of disaster for the producer. This apprehension has since been borne out. The pooling scheme is on an entirely different basis. There is no intention of working against the interests of the great produce merchants at Home who have for so long been honorably connected with the selling and marketing of our produce, but of co-operating with them and utilising their organisation, experience, knowledge and judgment. We agree with Mr. Goodfellow that in order to . make the scheme effective it must be made compulsory, just, as the meat scheme was. and that, strong finance must be secured from the industry itself without leaning on the Government. It is sufficient to have, the State’s imprimatur. Government interference iu the management must be avoided at all costs, for that would retard and not promote the success of the scheme, which, as we have said, should be carefully considered on its merits, and only condemned if there is a practical alternative offering better results. One thing may be said with confidence: Our producers cannot afford to take the risk of another smash on the market like they recently experienced, and which, as Mr. Brash and Mr. Goodfellow have shown, could have been avoided had the necessary machinery for the disposal of our butter and cheese been then iu operation.