Mr Onion optimistic

Press, Volume CXI, Issue 32553, 12 March 1971, Page 3

Mr Onion optimistic

(N.Z. Press Association)

WELLINGTON,

March 11.

While generally supporting remarks by the Prime Minister (Sir Keith Holyoake) on increased incomes for dairy farmers, the chairman of the Dairy Board (Mr F. L. Onion) says account must be taken of sharply rising costs, which are eroding farmers’ net incomes. In a supplied statement to-

day, Mr Onion says there is no doubt that market prospects for dairy produce are even better than they were a year ago, and are still improving. Last night, Sir Keith Holyoake, addressing a farmers’ meeting at Dannevirke, conservatively estimated the average pay-out for butterfat this season at 36c per lb, and predicted that the average dairy farmer’s net income would rise $BOO. Mr Onion said today: “The Prime Minister’s statement reflects his view of the improved earning capacity of the industry in export markets.

“His estimate of 36c per lb milkfat in milk at the farm gate this season would compare with last season’s average pay-out by the dairy companies of between 32c and 33c.

“It must be appreciated that the figure of 36c given by the Prime Minister repre-

sents his estimate of the gross payment to farmers for milk produced this season.” “The gross income will certainly be up, by amounts varying from company to company, -but account must be taken of the fact that sharply rising costs are eroding fanners’ net incomes to a marked degree. “They have also had two successive adverse seasons because of droughts, although we expect a better autumn this year than last year,” says Mr Onion. “Nevertheless, the main fact, as the Prime Minister has indicated, is that higher earnings will enable an increased gross payment for milk to be made to dairy farmers from this season's production, and I am confident this trend will continue.

“The general situation globally is one of heavily reduced stock levels, short supplies, and rising prices in all markets,” he said.