DAIRY PROBLEMS

Dominion, Volume 24, Issue 89, 9 January 1931, Page 10

DAIRY PROBLEMS

Economic Position EXPERTS’ INQUIRY Attempt at Solution The position of the dairying industry is being investigated by a representative committee appointed by tile Government in accordance with a.promise made last month, its object being to determine the extent to which • the industry is embarrassed by the present depression and to suggest the -form of assistance required. i The personnel of.the committee, which held its first meeting yesterday, is as follows: —Mr. W. lorns, chairman of the Dairy Control Board;*Mr. J. Millington, manager of the Whangarei Co-operative Dairy Company, representing Auckland; Mr. J. Westwater, internal auditor of the New Zealand Co-operative Dairy Company, of Hamilton, representing the Waikato; Mr. J. Moodie, of Taneatua, representing the Bay of Plenty; Mr. G. Duncan, of the Hawera Dairy Company, representing Taranaki; Mr. P. J. Desmond, of the Cheltenham Dairy Company, representing Manawatu ; Mr. L. H. Smart, of Carterton, representing the Wairarapa and Hawke’s Bay; Mr. J. A. Brown, of Winton, and Mr. S. J. Smith, secretary of the • Canterbury Central Dairy Company, representing the South Island; Dr. C. J. Reakes, Director-Gen-eral of Agriculture; Mr. W. M. Singleton, director of the dairy division; Mr. E. J. Fawcett, farm economist of the department; and Mr. T. 0. Brash, secretary of the Control Board. Order of Reference,. The following is the order of reference laid down by the Government:— “To discuss the economic position of l dairy farmers under conditions of exceptionally low value for dairy produce such as exist at the present time, and to report to the Minister of Agriculture the opinion of the committee upon the abovementioned position, the report to include information as to the probable extent of the ability or otherwise of dairy farmers to carry on and meet their obligations without assistance in some form or other. / “In considering this, it is suggested that the committee will find it helpful to go into the following points:— “(1) The economic position of the dairy farmer under conditions of market values for dairy produce during the eight ■years prior to July 31 last. “(2) The economic position of the dairy farmer under current market values, including: (a) His estimated gross income per acre, (b) His estimated expenditure per acre necessary for maintaining his normal level of production, (c) His estimated net revenue after meeting necessary operating and maintenance expenses and other financial obligations, but not including either a charge for the labour of the farmer himself or his wife, or any charge for interest on capital value of freehold land or buildings. “(3) The effect upon business firms and financial institutions of non-payment of dairy farmers’ obligations and the extent to which failure to meet such obligations is likely to come about if the present low level of market values continues for any length of time, and no assistance is rendered. “(4) If the committee, after fully considering the position from all points of view, considers some measure of relief is necessary in order to maintain the industry in a position .to continue production at or about its present level, how such relief can best be given.” Concern of the State. , In extending a welcome to members of the committee on behalf of the ActingPrime Minister, Hon. E. A. Ransom, and the Minister of Agriculture, Hon. A. J. Murdoch, the Minister of Native Affairs, Sir Apirana.Ngata, said the Government sought a diagnosis of the present ills of the dairying industry. The Government desired to thank the chairman of the Dairy Board for his assistance in helping it to tackle realities by calling the conference, which had been suggested by a deputation from the dairy associations. It was felt, in the selection of the personnel, that what was wanted more than heads of the industry was the active service and advice of men handling the affairs of the farmers from day to day. People generally were inclined to exaggerate things at the present time, and the Government did not wish to aggravate the position by unnecessarily creating alarm. It was felt that if the committee could offer real suggestions the Government would be able to assist 'the industry. However, the Government had its difficulties, and would appreciate the conference making its requests in a minimum scale. The order of reference was wide, and it would be for the conference to interpret its terms and go into the actual business details involved. After they had got the diagnosis, he suggested that they should use a certain amount of discrimination in regard to the dairy farmer who, owing to excessive capital costs or other reasons, would be unable even in normal times to meet his obligations. Even the best equipped Government could not be expected to come forward to help the man who had overloaded himself either in dairying, sheep farming, or any other business. Mr. Brash was elected chairman of the comtnittee, and the day was. spent in private conference. A report is to be presented to the Minister of Agriculture.