GUARANTEED PRICES FOR DAIRY PRODUCE

Press, Volume LXXIII, Issue 22017, 15 February 1937, Page 6

GUARANTEED PRICES FOR DAIRY PRODUCE

TO THB *BlTda OJT THE PBEB3. Sir,—The remarks of Mr C. A. Barren, M.P., reported in a Press Association telegram of February 9, that the present indications were for the guaranteed prices next season bei. t revised in the direction of taking into aceduiit the increased cost of production, are rousing considerable interest amongst dairy producers in Canterbury. ' These remarks were published at the ssame time as the report from London that Danish butter is setting at 120s or about £32 a ton better than the best quotation for New Zealand butter of 88s that could be obtained last week.

The present price &': which New Zealand butter etui be sold in Lottdon is under 90s, or about £ls a ton lower than the guaranteed price, so on every shipment Of New Zealand butter sold at to-day's prices an enormous loss is Visible t& the Government and the people of New Zealand generally. But the guaranteed pride may be raised next'year, according to Mr Barrell, M ( P„ because the Government has raised" the Cost of production through increasing the, costs of every6He by recent legislation. The question is being asked as to whether the best informed prophecies about the Government's dairy marketing scheme are not turning out to b§ cdrreCt. Mr Nash haa been in London for some time. His pronouncements and those of cabinet ministers generally, and the whole Labour party before the last election were that the problem of government marketing presented hd difficulties, and* that political produce sellers could do better than those who had spent a life time in the trade, but who were inefficient and incapable and predatory, and altogether not fit to be in charge of the marketing of New Zealand torithary p'radUcts. .Mr,,Nash has sfeeh the price of New Zealand butter go steadily downwards, while he has been in London, but he has been like King Canute in his inability to stem tides which are mightier than his 1 powersi The people of NeW Zealand generally will have to pay the difference betwCeh .the guaranteed price ahd the lower price which is being realised on the London market. The gap between the price of Nfev/ Zealand butter and the price of Danish butter 13 depressihgly Wide. The costs of the dairy producer ar2 "swelling Visibly," so that the question is being asked nlore and more urgently as to where this is going to end. Is the inexperience of the Government going to spoil the only market we ha\ for our dairy produce ahd permanently damage us? Are the Costs of the dairy producer going to rise uncomfortably through more and more social legislation? Will the Government be forced to raise the, guaranteed price which is already too high in relation to London pfices, and is required to be raised because of heavier burdens on the dairy farmer, and further deplete the incomes of all Newi| Zealanders by heavier faction?

The plain filets coming homo are that this Government tackled the job at the Wrong endi It h&£ laid the emphasis on what many think that they shdttld receive, rather 'an'on what is available, and What isi produced, and What the World Will give us in exchange for our surpluses. If it continues with these marketing schemes a -d this increase of costs, and its present blindness to the fact that the Wdrld outside New Zealand cannot be controlled by it, and this world will only paV New Zealand for its produce at its own economic rates, and not at the rates the New Zealand Government wishes, then it seems inevitable that the from which thece socialistic benefits a expected to flow will get barer and yet more bare, and disaster Will ettSue. The question arises Whether Ave shall wait for that day to arrive, or whether there are those with sufficient foresight and

vigour to endeavour to turn the march back along the hard, broad highway, before the feed in bye-path meadows is all eaten up.—Yours, etc., ANON. February 12. 1937.