NEW DAIRY PRICE
“Arrangements Short-term”
(New Zealand Press Association) WELLINGTON, August 31.
The arrangements announced by the Government on dairy prices could only be short-term, Mr R. Woolerton, chairman of the Dominion dairy section of Federated Farmers, said this evening.
Mr Woolerton said that cost-re-ducing policies must be pursued by the Government, if it valued the dairy industry for no other reason than the industry’s ability to earn foreign exchange. In a statement in which he mented on the new season’s dairy price, Mr Woolerton said the Government’s announcement confirmed his views that the guaranteed price system was dead. There would have to be a reexamination of the present position, not only by the industry itself, but also by the whole country. There were definite limits to which an already very highly efficient industry could improve its efficiency. “The industry must look to the Government for the solution,” he said. Mr Woolerton said: “The new season’s dairy price is at least 16 per cent, below production costs. Election promises by members of the present Government led the industry to believe its production costs would be covered. The announcement therefore comes as a disappointment, and confirms my earlier view' that the guaranteed price system is dead.
“Last season, producers accepted a 5 per cent., cut in price in view of overseas realisations, and as a lead toward a general reduction in costs.
“But internal costs rose during the season and the recent Budget will accelerate the rate of increase. For instance, transport charges have already been increased as a direct consequence of the Budget. “In x this respect, dairy farmers will certainly endorse the comments of the president of the Federation of Labour (Mr F P. Walsh) when he says that ‘the increase in transport charger which have been allowed by the Transport Charges Appeal Authority will increase costs in primary industries, aggravating the position caused by falling export prices.’ |
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Bibliographic details
Press, Volume XCVII, Issue 28679, 1 September 1958, Page 10
Word Count
319NEW DAIRY PRICE Press, Volume XCVII, Issue 28679, 1 September 1958, Page 10
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