DAIRY PRODUCE PAYMENTS

Press, Volume XCIII, Issue 27992, 12 June 1956, Page 14

DAIRY PRODUCE PAYMENTS

FULL COST SOUGHT IN FIXED PRICE

RECOMMENDATIONS ON INDUSTRY CHANGES

The New Zealand Dairy Board is asking the Government to approve end-of-season payments to dairy companies to the extent that surpluses are available from the Dairy Products Marketing Commission’s operations. The board claims that the guaranteed price fixed at the beginning of the season just closed was 2.936 d below production costs, according to the price formula. It asks that the guaranteed price be supplemented both for last season and the coming season, in accordance with the principle set out by the committee of inquiry, and in terms of the 1952 agreement. At all ward conferences, there had been full support for the price-fixing proposals put forward in the tee of inquiry’s report, said the board, m a statement yesterday. The proposals envisaged the fixing of a price at the beginning of a season (similar to the present procedure) and on the basis of a reduction of not more than 5 per cent, of the previous year’s price. Acceptance of the principle of end-of-season payments when , marketing surpluses had accrued on a season’s" trading was included. The industry desired also that al] Government responsibilities contained in the Dairy Marketing Act should be retained. The board found at a meeting last week that there was strong industry support for the principles set out by the committee of inquiry, that there should be majority industry control of marketing and that the administration of the industry should be much more directly linked with marketing. From the resolutions carried at the various ward conferences, it appeared that the organisation most likely to meet with approval would be the continuation of the Dairy Products Marketing Commission as a separate statutory authority, but with four industry representatives and three Government representatives.

The method of electing the four pro-ducer-members which seemed to have gained most favour with the ward conferences. would be one in which two members of the board would be appointed directly to the commission by the board. The other two would be elected by the Dominion dairy conference.

Price Fixing and Marketing A substantial majority in the industry supported the principle of the commission having a part-time chairman, to be elected each year from among the members of the commission. Similar elections are held for the chairmen of the meat, wool and dairy boards. Although there was a considerable division of opinion in the industry as to whether there should be a separate price-fixing authority, as recommended in the committee of inquiry’s report, it was generally agreed that price-fixing should be closely linked with marketing. There was also strong agreement that the composition of the price-fix-ing body should be on the basis of equal Government and industry representation. As a possible compromise the board recommends consideration of the proposal made by Mr C. P. Agar, at the Greymouth ward conference. that in price-fixing discussions and decisions a fourth Government representative should be added to thcommission with a chairman agreed upon by the Government and the

The board found that, while the industry was rfot prepared to accept all recommendations made in the report of the special Committee of Inquiry, there was widespread agreement that certain fundamental changes were needed and should 'come into operation in August, 1957,” the statement said.

“The committee’s recommendations on price proposals for products other than butter and cheese, have still to be discussed with the casein and milk povyder manufacturing companies, but it is recognised that there is strong opposition to the proposed price sunport provisions for these product*.”!