Dairy Farmers Urged To Resist Price Cut

Press, Volume C, Issue 29656, 28 October 1961, Page 12

Dairy Farmers Urged To Resist Price Cut

(N.Z. Press Association) PALMERSTON NORTH, October 27. The 5 per cent, cut in the basic dairy price, recommended by the Monetary and Economic Council, would result in a 15 per cent, reduction in the net income of dairy farmers, the president of the Dominion dairy section of Federated Farmers (Mr R. Woolerton) said in Palmerston North today.

Mr Woolerton told a meeting of Manawatu Federated Farmers’ that if the Government attempted to make the cut, there would be an outbreak of protest meetings all over the country. A resolution “that th® dairy industry was not prepared to accept a drop in the dairy price unless all other sections of the community were treated to a proportionate cut” was passed by the meeting. Moving the resolution, Mr B. A. Bartholomew said: “If the Government wants us to make a cut, then let us force them into the embarrassing position of having to pass legislation on it.” ‘‘The Government feels compelled, in some way, to ease up on expenditure, and we want to make sure that we are not the only people called upon to make sacrifices,” Mr Woolerton said.

A £6O million gap between New Zealand’s export earnings and import costs was expected this June, and it appeared as if the dairy farmer would be expected to help find some of the money. Mr Woolerton said dairy farmers had all the arguments in the world for an increase in price, rather than a decrease. It was ridiculous

to say farmers were borrowing credit from the country to sustain themselves. Conditions had been created by governments which were detrimental to farmers who were expected to get into debt to keep other people. Mr Woolerton told the meeting that Federated Farmers should have a close look at its finances and if necessary impose a levy on members to build up a fighting fund.