GUARANTEED PRICES.

Auckland Star, Volume LXVIII, Issue 205, 30 August 1937, Page 6

GUARANTEED PRICES.

In the first year of operation of the guaranteed price system the Government's experience was satisfactory, and, some will say, lucky. The risks inherent in the system are indeed very great, and particularly in these years when international relationships contain the possibility of a situation arising in which the Government, having bought the season's dairy production, would be unable to market more than a part of it. For that reason the non-farmer has reason to feel pleased that the Government, in fixing the prices for the new season, has limited its risk as far as was possible. By comparison with the demands made in one a minimum of 1/6 a pound—the basic price of 1/li is moderate. The farmer—or at least jsome farmers—will necessarily regard it from another point of view. Owing to the range in size of dairy farms, and in the financial circumstances of dairy farmers, it is difficult to generalise, but it seems fairly certain that a rise of less than three-farthings will not offset the increased costs on medium-sized farms employing labour. On this point—the actual rise in costs, particularly those attributable to Government legislation—the country is entitled to learn from the Minister the results of the comprehensive inquiry which was made before the advisory conifmittee reported to him.