Rising costs blamed for farmers’ woes

Press, 8 May 1978, Page 13

Rising costs blamed for farmers’ woes

PA Auckland Industrial unrest, soar* Ing costs and inadequate incomes have been the main problems referred to by the chairmen of the meat and wool and dairy sections in their reports to the Auckland Federated Farmers’ conference. Mr S. Lloyd, meat and wool chairman ,said: "Never before have we seen good, even record overseas product prices, yet sharply falling net farm incomes.” Lamb was selling at a record price, mutton was steady, wool was only a little down on last year, and beef prices were better than they were last year. "Yet meat and wool farmers’ incomes are expected to decline by 41 per cent in 1977-78,” he said. Rising costs were to blame. "At the rate costs have increased over the last two years, they will double in between four and five years,” said Mr Lloyd. "The tragedy of the present situation is that the basic future for our meat and wool is good. As the only major exporter of sheepmeats, we are in a atrong trading position.” He said that delays in

the freezing industry this season had caused a considerable loss to farmers and the nation. “The ewe kill was down 26 per cent in Auckland, but nationally it fell by 63.8 per cent. The situation in some parts of New Zealand is quite disastrous for many farmers. The frustrating deiays experienced by fanners are not caused so much by lack of works capacity as by the fact that the works are running well below peak, because of the following four factors:

“Men away on accident compensation, absenteeism, stop-work meetings and industrial action, and strikes by one of the many unions involved in the industry.” The dairy section chairman (Mr R. Webby) was also worried by industrial unrest. He said the dairy industry paid dearly last year for industrial disputes.

“It’s true we did not have any major strikes in our dairy factories, but the industry was affected by load-out bans, goslows, and stop-work meetings, mainly on the wharves. Some of these affected crucial deadlines, jeopardising not only existing markets but also new ones that may have become available.

“As I see it, the causes of our pathetic incomes are due, to a very large degree, to the policies, actions, or inaction of the Government. For almost three years we have waited patiently and watched our real incomes fall.”

Mr Webby said the dairy farmer paid' costs, such as dairy inspection fees and the cost of dairy instructors, that benefited the nation. “Let the State take care of these and dairy farmers would not need subsidies."

A Dairy Board member, Mr D. Bay, and Mr Webby agreed that the daity industry was struggling to keep up with present de® mands for its products, and during the next 10 years there would be market opportunities far beyond the ability to supply.

Mr Bay said: “We have a product which is increasing in demand on a world-wide basis. To the long-established market of South-East Asia we are steadily adding the Gulf States, South America, and West Africa with all their huge potential. “We are the largest supplier of casein to the United States and, in spite of current problems, of cheese to Japan. I believe that during the next decade we will see market opportunities far beyond our ability to supply.”