‘More confidence and less inflation needed’

Press, Volume CXI, Issue 32604, 12 May 1971, Page 16

‘More confidence and less inflation needed’

“If, with higher prices, we could have less inflation and more confidence, the industry would forge ahead to set new records and thus gain to the country as a whole," said the chairman (Mr J. R. Marwick) in his report to yesterday’s annual conference of the dairy section of North Canterbury Federated Farmers.

AU through the years of depressed trading conditions, the leaders of the farming industry continued to express confidence in the future of dairying; it seemed that for the immediate future, at least, overseas markets were secure and prices satisfactory. A review of the Industry’s course might be needed when the results of Britain’s application for entry to the E.E.C. were known, said Mr Marwick.

''Prices, however, are only one side of the story. The farmer is most interested in what is left of prices after costs have been taken out.

"Factory and transport costs have increased sharply over the last year, thus whittling away what is available to meet the increased 'on farm’ expenses, to say nothing of the increased labour reward for the farmer, which most other sections expect as of right.’’ Inflation was a matter for the Government to deal with, said Mr Marwick. The confidence of the daily farmer would be given a lift if the Government approved payment of the whole of the surplus from the current year’s trading. Dairy production Each year, dairy farms in North Canterbury produced 2700 tons of butter. 500 tons of cheese, 1350 tons of skim and buttermilk powder, and Um gallons of milk for local consumption as fresh milk and cream.

Of this, only about 100 tons of cheese was exported. Mr Marwick said. However, as prices to farmers were based on overseas realisations, the fortunes of local dairy farmers rose and fell with those of the dairy industry as a whole. The five quick jumps from $3OO a ton to $420 for New Zealand butter on the United Kingdom market would be noted with satisfaction. Now, instead of a world-wide dairy produce surplus, the Dairy Board was unable to meet the demand. Droughts in New Zealand had restricted dairy farmers’ ability to take advantage of the export opportunities.

Brucellosis testing The section was concerned that the Government did not intend to proceed with the programme for eradication of brucellosis in the coming season on the scale which was envisaged originally. said Mr Marwick. “Any great delay in controlling brucellosis, when other countries are well on the way to eliminating it, could lead to marketing difficulties for our beef exports. A big proportion of this beef originates from dairy farms ... the possible loss of export income is a matter for the nation.”

Town milk herds supplying Christchurch were free from brucellosis because of a voluntary eradication scheme which producers imposed on themselves several years ago, he said.

Commenting on the brucellosis programme, the provincial senior vice-president (Mr A F. Wright) said Federated Fanners still considered eradication was in the national interest, and compensation for stock slaughtered because of disease was a national responsibility. Elections Mr Marwick (Ohoka and districts) was elected unop-

posed as chairman of the dairy section for his second term. Mr-R. E. C. Rossiter (Waimairi) was elected vicechairman. The executive comprises Messrs M. F. A. Penfold (Amberley), P. N. Ussher (Banks Peninsula), K. B. Judson (Cust-West Eyreton), R. Barclay (Dunsandel), J. J. Sunckell (Ellesmere), G. W. Farquhar (Femside), L, Denton (Hawarden-Waikari), A. D. Oliver (Hororata), M. Marriott (Motukarara). P. Rainey (Ohoka and districts), P. G. Mears (Oxford), C. G. Wheeler (Sefton and districts), W. B. Marshall (Springston). J. P. Stalker (Tai Tapu), R. E. C. Rossiter (Waimairi), M. Mclntosh (Woodend and districts), F. D. Arthur (Yaldhurst); S. E. Chappell (Dunsandel) and F. H. Eggleston (Tai Tapu) as co-opted members.