THE UNSETTLED ISSUES

Dominion, Volume 34, Issue 295, 10 September 1941, Page 6

THE UNSETTLED ISSUES

This year the dairying industry faces the greatest, adjustment in its history, for a contract has been entered into with the British Government for the supply of 160,000 tons of cheese annually for the duration of the war and one year after. It will be a matter of thorough organization, but the industry has a record of co-operative effort that will do much to ensure success. The goal to be reached is clear, but there are several very important matters that are still shrouded in doubt. The industry will make every effort to produce the cheese and butter required, but company directors cannot even estimate important items entering into costs, because the Government, for some reason, will not disclose its intentions. When, for instance, is payment to be made for the current season’s output? It was urged, by the National Dairy Association conference in Auckland recently, that 50 per cent, should be paid after the produce had been in store for a definite period, and the balance if it were still in store after a stated time. The matter is of impoitance because the dairy companies, with their prices fixed on the basis of those ruling in 1938-39 —do not want to incur storage costs for an indefinite period. It would mean heavier inteiest chaiges, probably imposing a reduction in the pay-out to suppliers, and at a time when they have to mqet steadily mounting costs on the faim. That is the second issue on which further information is required. The prices to be paid to dairy companies have been stationary for three years. They are on the pre-war level. But costs have risen materially, both in the factories and on the farms. “Every other section of the community,” stated Mr. A. Morton, president of the National Dairy Association, “had had its remuneration increased to provide against those increased costs, but the farmer had to content himself with the same price as he had received three years.ago. Is it the intention of the Government that that state of affairs should continue, or, in view of its appeal to the industry for a record production of cheese, has it any plan for stabilizing farm costs? These are two matters on which some definite announcement is ajvaited, and the approaching conference will afford the authorities an opportunity to make it. Both directly affect a basic industry, for while, in the exceptional circumstances ruling, quantity is important, production must be on a sound economic basis or future development will be seriously handicapped.