REPLY TO CRITICS

Ashburton Guardian, Volume 56, Issue 236, 18 July 1936, Page 3

REPLY TO CRITICS

DIFFERENTIAL PAYMENTS PLAN. CONTROL OF DAIRY PRODUCE. (Per Press Association.) HAMILTON, July 17. A vigorous reply to the statements made by Mr S. Austin Carr, of Auckland, criticising differential payments on dairy produce, was 1 made by the Minister f.r Agriculture (the Hon. W. Lee Martin) at Raglan to-day. “There appears to be some misconception about the application of differential price margins for butter and cheese under the guaranteed price plan,” Mr Lee Martin said. “It is generally admitted by the industry that some differential-price system based oil grade points must be adopted if quality is to be maintained, because otherwise some dairy companies will not 'be encouraged to strive for the highest possible pointing for their butter and cheese. The system that has been adopted was arrived at after full and careful consideration, and was the outcome of lengthy discussions between the Executive Commission of Agriculture, the Dairy Board, and officers of the Dairy Division of the Department of Agriculture. “In the cases of both butter and cheese, it was decided that the basic guaranteed price should be paid for grading points, for the group that included the greater percentage of our export product. It was found that nearly 44 per cent, of our butter was graded 93 and 93£- points, and that nearly 42 per cent, of our cheese was graded 92 and 9‘2j- points. “The basic guaranteed price will be paid for butter and cheese coming within these groups. A premium of per cwt will be paid for butter grading at 94 points and over; a premium of id per cwt will be paid for cheese grading at 93 and 93jj points, and a premium of Is s}d per cwt for cheese grading at 94 points and over. In the case of°both butter and cheese there will be two rates for first grade and two rates for finest.”