MARKETING SYSTEM

Evening Post, Volume CXXIV, Issue 60, 8 September 1937, Page 11

MARKETING SYSTEM

"FINEST YET INSTITUTED"

CORRECTING CHEESE MARGIN

(By Telegraph—Press Association.)

NEW PLYMOUTH, This Day. Dealing with some of the results of the marketing scheme, Mr. Nash said that the marketing procedure was recognised by other nations as the finest yet instituted. They were not holding up the market to- a level where it would check consumption, but were preventing speculation, which was destructive of a return to the farmer. The commission charge of the -importers had been reduced by h per cent. Another advantage was that"Mr. Duncan could ship the produce to the best advantage, sending it to ports when and where it was required. Mr. Nash ■considered that the present payment •system was the best he knew of. Dairy companies could pay out on their produce as it was shipped, without having to get bank accommodation and pay interest charges, because the Government paid them immediately. Whereas the companies had to pay 41 to s?< per cent, to the banks, which were entitled to that rate, the Government paid lj per cent, on its daily balance in the Dairy Account. This year the Government, after taking all factors into

consideration, had to fix a price that would give the average farmer a decent standard of living. That question was referred to a committee of experts, who were given all the available information from the Department of Agriculture, the Government Statistician, and other sources. The figures showing farm expenditure taken into account, when the price was fixed would be released for publication. THE WORKING FAMILY. The Minister stated that interest on the value of property was allowed, so was payment for labour. There was an allowance per pound of butterfat for labour, so that the fanner did not have to employ his wife in what was called "slavery." If she or her children went into the shed, allowance was made for payment for her services. It was humbug to say there should be no young people employed on farms. It was found from the junior labour of today that the farmers of the future would come. Generally young people were paid less than men, so that the figure allowed for labour would show a profit to the farmer where youth was employed. The committee which had reported to the Government had not fixed the prices, Mr. Nash said; that was the responsibility of the Government. If there was any praise coming it should go to the Government. If there was any blame it should go to the Government. THE CHEESE DIFFERENTIAL. Referring to last season's differential between butter and cheese, Mr. Nash said he wanted to find a way to live up to the promise he had made in the Budget that it would be ljd. The Government would find some way of doing justice. He could not promise that he would be able to set out an actual figure, but the Government would find a way to fulfil in its entirety the promise it had made. Opposition to the procedure wpuld disappear when the London market fell below the guaranteed prices at which the Government bought the produce, continued the Minister. A voice: We haven't sold it; you have commandeered it. PAST PRICE FLUCTUATIONS. The Government was trying to prevent what had happened in the past '. years happening again, continued Mr. ; Nash. No industry could carry on in- : definitely if its returns fluctuated so much while more than half its costs remained constant for ten years. The prices of cheese, the last two guaranteed, had varied as follows:—1928-29, 91s a cwt; 1929-30, 81s; 1930-31, 57s 6d; 1931-32, 57s 6d; 1932-33, 48s; 1933-34, 47s 6d; 1934-35, 55s 6d; 1936-37, 61s 3d; 1937----38, 675. So far as figures were now available, they showed that the average payment for butterfat for cheese last year was 14.48 d, and for butter 13.56 d. Under the new prices Taranaki factories would return 16.3d per.lb of butterfat, providing, however, that their costs went no higher. In calcu- ' lating that the guaranteed price would ' return 15.88 dto the average supplier ■ of a cheese factory, the Government ' had taken f.o.b. costs at 3.25 d, .37d ] above the actual figure for the Patea \ grading companies last season. The '' Government's only desire was to give the dairy farmer fair remuneration. If it gave one section of the community more than it was entitled to another would receive less. ]

A voice: How much an hour will the farmer get?

Mr. Nash: I know of no other way, unless he wants to become a wageearner to compensate the farmer for his work except by a price per pound of butterfat.-

Unless stability was introduced the guaranteed price scheme would fall to the ground, said Mr. Nash. There was pressure on the Government to compel it to pay more than it should, and another section would be happy if the Government laid less. A man who demanded that the pay-out should be at least Is 6d had later written to the paper saying that it should be Is 4d for cheese and Is 2d for butter. If the Government received the same price this year for produce as it did last year, there would be a deficit of £2,000,000. The Government was facing that, because the farmer was entitled to be paid for his work.