ORDERLY MARKETING.

Waikato Times, Volume 121, Issue 20280, 24 August 1937, Page 2

ORDERLY MARKETING.

DAIRY PRODUCE IN BRITAIN GOVERNMENT CONGRATULATED FIXED PRICES CONDEMNED (Special to Times.) WELLINGTON, Monday “ The acfciA’itie-s of the Dairy Salss Division in its handling of the position on the other side have been an unqualified success,” said Mr F. B. Ellison, London manager of the National Dairy Association of New Zealand, interviewed to-day, “ and the Government is' to be congratulated for Its courage and sagacity, as are also those both here and on the other side to whom they haA’e entrusted the task of putting the scheme into operation. They have made importing houses realise at long last that their function is to work in the interests of the Industry. “ Speculation has been cut down to a minimum by the elimination of f.o.b. or o.i.f. sales, and sales through brokers, and, while there Is still some speculation taking place, I am convinced that even this will ultimately be eliminated. Distributors 1 Fears. “ The distributive trade ln England was naturally much concerned as to what the Dairy Sales Division would do,” Mr Ellison continued, “ more especially to know whether any attempt would be made to control prices, and predicted the same failure as when attempted ln 1926. It was' soon realised that this Avas not to be done and that the steps taken to eliminate large fluctuations ln prices and the manipulation of the market were ln the best Interests of all concerned, with the result that they would be more able to secure a reasonable margin of profit, to which they are entitled. In other words, orderly marketing has been established through the steps taken by the Marketing Department. “ There are apparently some In the Industry here In New Zealand, M said Mr Ellison, “ who still think the Government should fix prices. I am convinced that this would prove disastrous, Just as it did In 1926.

“ It would have the effect of alienating the whole of the members of the distributee trade, who were mainly responsible for what happened to the previous attempt. It would wipe out the goodwill that has had to be rebuilt. since then, and that engendered by the present scheme. The present orderly marketing is securing what benefits such people think would accrue from price fixation, but without its disadA’anlages. Rationalisation Favoured. “ The Indications are that the Imperial Government is endeavouring to encourage the production of butter rather than cheese in Its efforts to assist the Industry in England,” said Mr Ellison. ‘‘ I feel that it is not to the advantage of the Industry here for the production of butter to Increase at the expense of cheese, but that the should be the case. - ” It Is very Interesting to see what steps are being taken by the department here to rationalise the products side of the industry. It is impossible to forecast the future, but one cannot help but feel that the advantages of the present activities, as time goes, will become more apparent.”