150,000 CALVES IN DIVERSION SCHEME

Press, Volume CX, Issue 32210, 31 January 1970, Page 1

150,000 CALVES IN DIVERSION SCHEME

(From Our Own Reporter) WELLINGTON, January 30. Registrations of calves under the dairy industry diversion scheme were likely to be about 150,000, and the final figure might be even higher, the Minister of Agriculture (Mr Carter) said today.

This was the beginning of a substantial diversion of the industry’s resources away from milk production, he said. Next season it would provide a worthwhile addition to the beef available for export.

When the scheme was announced in last year’s Budget it was stated that it would apply to the 1969-70 season only, he said. But last September the Government approved ah extension of the scheme to cover the 1970-71 season.

“Registrations of calves under the scheme had to be made with a dairy company not later than January 9,” he said. “This meant that any appraisal of the effectiveness of the scheme was hardly possible until a full tally had

been made of registrations received by dairy companies up to the qualifying date. Fears Expressed

“A few months ago fears were being expressed that the scheme was likely to prove ineffective in attaining its objectives, and the substantial increase in the bobby calf kill last spring was quoted as supporting evidence. It must be remembered, however, that the record bobby calf prices of last spring must have influenced many farmers who would have been in a position to take part in the diversion scheme.

Carried Through Winter “Both the Government and the Dairy Board have always recognised that such a scheme would need to be amended as experience indicates difficulties, and consultations . . a

will be held to determine the adjustments needed.” Mr Carter said it should be recalled that to be eligible for the incentive payment and the special loans farmers had to rear the calves, either male or female, until September 30 of this year. In other words, the calves must be carried through the coming winter.

“I am well aware that the real test of the scheme will probably come next spring,” he said. “Then farmers will have to decide what additional calves they will retain and at the same time decide how they are going to handle the yearlings retained from this season. “However, we have good grounds for optimism that the scheme has been soundly launched because of the willing co-operation of the board, the dairy companies, leading agencies, and individual fanners.”