PROFIT MARGIN IN INDUSTRY

Press, Volume XCIX, Issue 29263, 22 July 1960, Page 17

PROFIT MARGIN IN INDUSTRY

Farmer Suggests Inquiry (New Zealand Press Association) AUCKLAND, July 20. Costs continued to rise and overseas realisations were decreasing to the point when dairy fanning would become uneconomic, Mr D. A. Finlayson, Northland representative on the Dairy Board, said today. Mr Finlayson, who Is chairman of directors of the Maungaturoto Dairy Company, was presenting his report to the annual general meeting of the company. The dairy industry was being forced into an impossible position, he said. Further increases in production costs had been experienced during the year and the of the 24 per cent, cost of living bonus in the basic wage would be a further heavy impost on the dairy industry as it would now apply to all overtime rates.

“The only answer to the problem is a drastic reduction in operational costs both on the facm and in the factory," said Mr Finlayson. “This is a matter for urgent Government action. “Profit margins in secondary industries should be closely examined with a view to reducing charges for goods and services. Costing methods and practices should also be closely scrutinised.

“Continued protection of these industries against overseas competition has been largely responsible for the present high cost structure in this country and should be withdrawn. “The dairy farmer’s living standards are being forced down with each increase in costs. This trend must be arrested without delay.”