MARKETING SYSTEM

Waikato Times, Volume 121, Issue 20276, 19 August 1937, Page 11

MARKETING SYSTEM

MR GOODFELLOWS REVIEW AMALGAMATED DAIRIES. DOMINION SHIPMENTS INCREASED. Referring to the activities of Amalgamated Dairies. Ltd., at the annual meeting of the New Zealand Co-operative Dairy Company to-day, Mr William Goodfellow, managing L director, stated that several important changes had taken place during the year under review. The New Zealand Government had purchased the whole of the exportable output of New Zealand butter and cheese, and the company, as one of the Government’s agents, had received an allocation of the brands previously handled in the United Kingdom. The remaining export sales were covered by purchases from time to time from ' the Government on a net cash f.o.b. t , basis. The arrangement had worked _ very well, and no difficulty had been experienced in holding the trade in “Anchor” products, either in the United Kingdom or In the many markets where the company’* produce ■was now well and favourably known. During the year under review the Lister separator agency had been disposed of to R. A. Lister and Co., Ltd., of Dursley, England, who in turn had g come to some arrangement with ' Messrs Levin and Co., who already acted as distributors for other lines manufactured by the Lister Company. A substantial goodwill payment had been received, all new stock had been sold at cost, and second-hand at valuation. The net result of trading during the period of the agency varied from year to year, but, including the goodwill payment, the result had been P quite satisfactory from a financial point of view. It was pointed out that although the gross profit on separators was high the servicing and selling costs absorbed practically all the gross s profit, and a net return of 5 per cent. 9 In the turnover was regarded as satis- y factory. During the year 1580 Lister n separators had been disposed of n throughout the Dominion. li Bacon Company Sold. 0 In regard to the Empire Bacon c Curing Company, which was estnb- 0 llshed in Newcastle-on Tyne, England. ( some few years ago, Mr Goodfellow r regretted to have to report the sale * of this plant, as It had been found « quite Impossible to carry on profitably j under existing conditions in the United *- Kingdom. The iniquitous practice of c converting New Zealand selected pigs ® into English and Scotch bacon, he C stated, gave competitors a price ad-A-antage of approximately Id per lb. r To make matters worse, about one- c third of the lowest grade New Zealand haconers were sold as Empire bacon, thus depressing the price which the n company could obtain for its “Delta” F brand bacon and hams. The company o Appealed in vain for help, to both the s Meat Board and tho Government. In n reality, they had attempted a Job 0 which should have been pioneered by h the Government, or at least with Go- 0 vernment backing. Mr J. R. Wright, t the London manager, had put a tre- t mendous amount of work and thought T Into this venture, and with anything 1 like fair trading the business would c ■have become a very valuable asset to the New Zealand dairy farmers; all f manufacturing difficulties had been f overcome, and the cost of marketing ( bacon and hams to the value of over t £200,000 sterling per annum had been t reduced to approximately 1 per cent., < but notwithstanding this fact. Amalga- ’ mated Dairies were faced with a loss r of approximately £IOOO a month, I which obviously could not. be allowed ( to continue, and in consequence the 1 outfit had to be sold. t j Briefly reviewing the past season’s 1 activities, Mr Goodfellow stated that / the total imports of butter Into the United Kingdom for the year ended June 30, 1937, amounted to 486,000 tons. New Zealand Imports into Great Britain amounted to 142,000 tons; imports from Denmark 114,000 tons, and from Australia 74,000 tons. The total cheese Imports for the 1 same period amounted to 135.000 tons. ■ of which New Zealand supplied 82,000 tons and Canada 30,000 tons. Dominion’s First Place. New Zealand easily retained first place as the largest supplier of both butter and cheese to the British markot. The total Imports of butter Increased bv 13,000 tons. New Zealand Increased her shipments of butter by 6000 tons and Denmark by 7000 tons, whereas Australia, due to drought conditions, reduced her exports to Great Britain by 13.000 tons. The total cheese Imports into Great Rritain show an increase of 3000 tons, whereas New Zealand supplied 3000 tons less than the previous year, and Canada 3000 tons more than the previous year. The reduction In Australian quantities undoubtedly assisted in bringing th» price of New Zealand butter nearer to Hint of Danish, and Mr l.oudl'ellow stated that It would talie a season of normal nrodtlrlinn In both Australia and New Zealand before the actual Improvement In New Zealand prices. rs compared will* Danish, could he a * Referring to production in iho T'niloil Kingdom, he -slated that too total production of butler and cheese in the United Kingdom did not show any material alteration, and obviously does not pav tho homo producer at present prices. Mr ‘.oodMlow stale,! that be would not be surprised to see considerable quantities of milk diverted from butter and cheese manufacture to human consumption in the near future. Additional Soiling Branches. In regard t<* K’npire Dairies. Mr Goodfellow said that in addition to the c Dairies had now IlillC solhng^OoMDvs The turnoxer for Hie past year amounted to £6.71 3.000 sterling, but if An , itsar, it* i D ii ies turnover were a i,i, | t this figure the turnoxer of (Continued In next column.)

the two organisations for the past year would exceed £9,000,000 in Nexv Zealand currency. He was pleased to report that Empire Dairies as a selling unit In tho United Kingdom was giving every satisfaction, and as noxv organ ise«l was capable of handling increased quantities of Empire produce. Dealing with imports of dairy produce from foreign countries, Mr Goodfellow quoted Hie folloxving figures to give some idea of the reduced imports of butter by Dm four main European importing countries during the past 1936. 1930. I * iermany - . 74,2 1 9 I 3 1 ,059 Belgium . . 3.63 i 10,006 Switzerland 1.439 8.390 81.190 153.224 There was a total reduction of 7 i,OOO tons. In regard to the United Stab's of r America and Canada, which lie slated •'I XX ere at one tone substantial allerna-I-1 |‘• t ..- . ill.l in future xxmi.d onlx xx!»-n productnm tell beloxx nor I j 1,, ,i tie H e-. -ov e..iiid «1 •e no pros. j,l v; 1 !l •! be I.\e:-i .0|,e,1 ||,.,| (!,. h I .01 . doit m_ .-••iii.il y xx •»«.-!. p- ...|ii. e. m- oxer Dm.imn I .n> of Putt •;