Milk increase wanted

Press, 31 October 1979, Page 14

Milk increase wanted

PA Wellington An interim increase in the basic price for whole milk is being sought by Federated farmers. The chairman of the dairy section of the federation (Mr G. Gibson), said in a statement that the submission would be

cased on two major critena. Thev were the improved market expectations for dairy products. and the devaluation of the New Zealand dollar, combined with rising costs within the industry itself. He said that other sectors of the farming industry had been able to

taxe almost immediate advantage of the devaluation of the New Zealand dollar “For dairy farmers, however, the situation is somewhat different. Although they will benefit from the devaluation when deferred payments are made, they will not do so in the interim.” he said. , “They still face the pressures of rising costs as devaluation effects farm inputs and cost structures generally, including hiaher fertiliser and electricity charges alreadv operating.” Improvements in liquidity and brighter expectations for other farmers have alreadt been well publicised. The Ministry of Agncul- , ture had reportec that confidence in the farming industrv had been indicated bv higher rates of I spending on previously 1 deferred maintenance and new development projects. This increase in devel- ■ opment did not apply to ; the dairy industry. That i was why Federated Farmers was presenting its submission seeking an ini crease in the basic price I to allow dairy farmers to have the same confidence ' to expand.