DAIRYING PROSPECTS.

Auckland Star, Volume LXIII, Issue 121, 24 May 1932, Page 13

DAIRYING PROSPECTS.

PRICES LOWER NEXT YEAR? PLIGHT OF THE FARMERS, MANURE SUBSIDY ESSENTIAL. (From Our Own Correspondent.) HAMILTON, Monday. Steps to induce the Government to renew the subsidy on manures were taken by the South Auckland Dairy Association at its annual meeting today. Mr. Dynes Fulton, chairman of directors of the New Zealand Co-operative Dairy Company, said lie had heard the Government would agree to a renewal of the subsidy. The chairman (Mr. S. A. Ferguson) pointed out that the association had received 110 official word. The subsidy was really a refund on profits made by the Nauru Phosphate Commission, and did not come from the Consolidated Fund. Air. C. J. Parlane, general manager of the New Zealand Co-operative Dairy Company, said superphosphate was greatly in demand, and the association should press for the subsidy to be continued for at least another year. "It is difficult to forecast what will happen in tlie industry," said Mr. Fulton, "It is possible prices for dairy produce will fall still lower next year, and we must have the refund on manures. If our output is restricted the national wealth of the Dominion will be restricted. and we will not be able to meet our obligation." Mr. Parlane said in the event of increased production being olTset by lower prices for butter New Zealand should enter the margarine licld. Competitive prices to-day were such that the New Zealand dairy farmer could hardly carry 011, and if prices fell lower and output was also down his ease was hopeless. Mr. F. W. Seifert, chairman of directors of the Morrinsvillc Dairy Company, said the subsidy on manures was the only form of protection the farmers received. Ihcv had reached a stage when farming costs were so great and pi ices so low that it was unsafe to carry on. In any case, the Government had taken more from the farmers by the exchange pool than they ever gave 011 the manure subsidy. On the motion of Mr. V>. Darralb of Tatuanui, it was decided to urge the Government to continue the subsidy.