DAIRYING INDUSTRY

Evening Post, Volume CXXVI, Issue 49, 26 August 1938, Page 5

DAIRYING INDUSTRY

PRODUCTION DECLINE

THE FACTOR OF COSTS

(By Telegraph—Press Association.)

HAMILTON, August 25,

"The second year under the guaranteed price scheme has run its course and, because of good market realisations and after allowing for the supplementary payment, a fairly substantial credit is assured in the Dairy Industry Account," commented Mr. W. Marshall, acting chairman of directors of the New Zealand Co-operative Dairy Company, at the annual meeting today. "This will, in all probability, be carried forward, but it is inherent in the scheme that at some date, as values fall, a deficit will be encountered.

"The scheme, as it affects the producer, . has , been a fertile source of discussion in. the industry, and it is exceedingly gratifying to record that at every Dominion gathering of representatives held during the year .complete unanimity was reached. I think the Dairy Board has proved its value as an executive ofJthe industry, the National Dairy Association has demonstrated its usefulness, and the Farmers' Union has shown breadth of vision. The cumulative effect of this has been to obtain an agreement with the Government, which was acceptable to representatives of the industry, as to the procedure to be followed in advising what the price should be.

'A reduction of 6.5 per cent, in the general production recorded in the Dominion as a whole is a serious matter for industry and the country, and if it so happens that we have reached the peak of dairy production in the Auckland Province, it must have farreaching consequences, for the industrial activity associated with development work, from the point of commencement on the farm to the placing of produce f.0.b., has contributed in no small measure to the rapid advancement of the province," added Mr. Marshall. "Reasons for the decline which, I think, require attention are the difficulty in obtaining suitable farm labour, and diseases in stock. Undoubtedly the former is the greater contributing factor, and it is imperative that some change should be effected before further harm is done."