MILK PROBLEM

Evening Post, Volume XCI, Issue 127, 30 May 1916, Page 4

MILK PROBLEM

THE INCREASE IN PRICE

STATEMENT BY THE DAIRY

FARMERS

A CLEARING-HOUSE SUGGESTED

The Wellington Dairy Farmers' Association has proposed a statement of its side of the 'milk problem for 'presentation to the City Council next Thursday.

The statement, sets out at length the objects for which the association was formed, and the arrangement it has with the vendors of milk in Wellington.

The association contends that the vendors not only pass on the increase to the public, but, as the Mayor stated, an increase upon an increase :—lst September, 1915,' landed price Bd, retail price Is 4d; Ist March, 1916, landed price lOd, retail price Is 8d: Ist April, 1916, landed price Is Id, retail price 2s. —" an increase by the association of Sd per gallon, and an increase by the Vendors' Association of 8d per gallon, or a passing on to the public of 3d per gallon increase over and above the increase put on by our association, and then we are called a milk'trust! Surely after the above there need be no misapprehension a-s to who is exploiting the public." The statement proceeds:— "The"vendors state that they do not retail all the milk at 2s' per gallon, but sell one-, quarter at reduced rates, making an average of Is - lOd per gallon. This, means 2s per gallon to the small consumer, and Is 4d per gallon to the large consumer. If the vendors sold on the same basis when the farmers charged 8d per gallon landed in Wellington, and the .vendors retailed at Is 4d, then the average Tetail price was Is 2d. This means that the increase from Is 2d in September, 1915, to Is lOd in April, 1916, is 8d per gallon, as against the farmers 8d in January to Is Id in April, an increase of 5d per gallon. Our association quite agree that the prices obtained at butter and cheese factories (B^d and Bg-d) are correct, and would point out that the average price per gallon obtained for town supply for 1915 was Bd. Surely the vendors do not think that cows yield milk all the year round. The mi'k for which factory suppliers are now obtaining lljd per gallon is obtained from cows specially kept and heavily fed and rugged for winter supply, and if the extra price could not be obtained the winter shortage of milk t would, be greater than at present. During eight months (August, 1915March, 1916) the factory supplier obtained Bid per gallon plus the by-pro-duct, and only had one tiip per day t,o the factory. The town supplier only obtained 7jd for.'the corresponding period, with no by-product, had to cool the milk, make two trips daily to the station, and on many occasions one or two extra trips for empty cans, which either the vendor or the Railway Department forgot to return. ' Our rfssociation is taking steps to remedy this by erecting cheese and butter iaotories, and ceasing to supply the city. .Much capital has been made by quoting the Bjd obtained at the factories as against the lljd obtained by the farmers at present date. The factory supplier does not produce milk for the winter. One of the largest factories on the Manawatu . Line, having 75 suppliers, received on 30th November, 1915, 5000 gallons, and on 30th April, 1916, 800 gallons, none of which is available for town supply, as the dairies are not r3gistered. Milk- in Palmerston1 North is being retailed at Is id per gallon, and costs the vendor Is per gallon. This is the district from which it is proposed to obtain cheap milk. All the milk'now being produced on registered farms between Kaitoke and Palmerston North (with the exception of, at most, 200 gallons daily) is being used for town supply at present date. This includes a, large quantity torn the Wairara.pa.~- ' \ Summarising the position, the association says: (1) The farmers receive £60,000 per year for milk supplied to the city. It costs the public £120,000 (100 per cent.) for retailing. The milk vendor at' Palmerston pays Is per gallon and retails at Is 4d (33-!; per cent, for retailing). (2) Every advance of. 2d per gallon in price by. farmers means an increase to the public of V 4d per gallon by the vendors. (3) Town suppliers only received 7gd for the eight summer months, as against B£d to factory suppliers for the corresponding period. (4) It costs from 75 per cent, to 100 per,cent, more- to produce, milk in winter, hence farmers will, not register their premises, keep two herds of cows, provide extra cans,, grow fodder, to milk cows in the four-winter months for, the same .price as" received at factory, aiid unless the increased price'can '.be obtained no provision' for winter milk will he made. -

After dealing with the clearing house question and various points of difficulty the association says:—"Daylight delivery between 8 a.m. and 5 p.m. and a clearing house is the only solution of the pure milk supply. The urgent necessity for the erection of a clearing house was advocated by Dr. Frehgley, Chief Health Officer, ■ and by the Health Committee of the City Council in 1909. A Parliamentary enquiry was held in December, 1913.. The Honi Dr. Collins, M.L.C., Dr. Herbert, 8.M.A., Dr. Newman, M.P., his Worship the Mayor, and the Department of: Agriculture, have all made most emphatic statements that the first step towards a pure milk supply is a clearing house. The council placed on its estimates a sum of money for its erection. Most of the present councillors pledged themselves to it at the last council election. A petition and several deputations from fanners Ijave asked for it, and after having duly con-sidei-ed the matter, our association wish to make the statement that, unless a clearing house be erected in the near, future; the present city supply will be turned into cheese and batter factories. The only objections come from a few vendors who would be deprived of the plea they always set up on being prosecuted for selling adulterated or inferior milk—that they sold the milk jnst as they received it from the supplier."