CHEESE PAY-OUT

Evening Post, Volume CXXVII, Issue 92, 20 April 1939, Page 10

CHEESE PAY-OUT

MINISTER'S PROMISE

DAIRY BOARD DISCUSSION

AN EXTRA TWOPENCE

A lively discussion regarding the pay-out for cheese compared with butter took place at the annual conference of the New Zealand Dairy Board today. Several remits were grouped in one which asked that the Government make up the difference between butter and cheese for the 1937-38 season to 2d per pound butterfat as promised. The remit was carried by 25 votes to 22.

Supporting the remit, Mr. S. A. Ferguson said that the industry was not satisfied with the cheese position. They had been told repeatedly that the cheese industry should receive at least 2d above butter. The letter they had received from the Minister of Marketing (the Hon. W. Nash) did not quite satisfy them. The Minister had stated that the cheese industry had not been able to maintain the yield required to get the differential, but he admitted that the cheese industry had maintained the yield on which the price had been worked out. The price was fixed on 2.45, and the yield was 2.459. At the same time, they had not been able to get the 2d differential over butter. That was no fault of the industry, but the fault of the working out of the price formula. The butter people had received more than the guaranteed price formula provided, and the cheese people had received just what the formula provided, but they had not received the 2d. It was maintained, he said, that unless the 2d could be obtained it was not worth while the trouble and expense of supplying cheese. BIG CHEESE PRODUCTION. Mr. J. Boyce said New Zealand provided about 70 per cent, of the world's cheese, and the industry was worth looking after. Last year he knew of three factories which had closed down, and this year one. If the differential was not to be paid there would be a drift of cheese suppliers to butter. Mr. Nash should honour his promise. A DIFFERENT VIEW. Mr. F. W. Seifert said that if the scheme were working "but as Mr. Nash had suggested it would be possible to get the 2d. He did not think- that the cheese people should be paid 2d irrespective of anything else. If they were to get 2d more than the butter companies under any conditions they would get the 2d whether the factories were economic or not. He would not oppose the remit. He thought it was possible, if the cheese people got together, that some system could be evolved under which they could get the amount they wanted. Mr. W. N. Perry said that the butter companies had exceeded the formula, especially as regards over-run. There was no room in the butter industry for all the cheese people. If they changed over, there would be 40,000 or 50,000 tons mdre butter going 'overseas, and that would detrimentally affect the market. Mr. J. S. Tosland said that his company produced butter and cheese, and they had received notice that farmers were going in for home separation, though the company needed the milk for cheese. Mr. F. Johnson said that it had been said that they were inefficient, but how could matters be straightened out when the gross yield only equalled the net yield of the Budget? Mr. E. B. Corbett said that the labour question when milk was produced for cheese was more acute than when it was produced for butter. Mr. J. B. Barnett said that they should not be penalised for the making of the formula, which was. the Department's responsibility. He thought that the mistake would not be perpetuated. MORE CHEESE IN WAIKATO. Mr. C. J. Parlane said that the tendency in the Waikato had been to leave butter and go to cheese. The indications were that five more cheese factories would be operating there. Mr. W. Harbutt said he knew of a dual factory that was 3 per cent, up in butter production and 20 per cent, down on cheese. The secretary pointed out that Mr. Nash had said that for the eight months of the season the decrease in butter was 9.9 per cent, and the decrease in cheese production 1.78 per cent. Mr. R. O'Connor said that many cheese factories did not justify their existence because they were too small. It would be in the best interests of the Dominion to close them down. Much of the discussion had really revolved round uneconomic factories that would be better closed. Mi*. R. A. Candy said that if the differential were to continue only one thing would happen—the differential would have to be reduced. Mr. Perry said that the butter side of the industry was treated overgenerously. If that was an argument, only one thing would happen: the allowance on the butter side would be reduced. An increase on the cheese side would not be obtained by arguing that the standards on the butter side were over-generous. If the Dominion drift was going, as was said, then the remit should be opposed, because the cheese people had received exactly what the guaranteed price said they would receive, but the butter people had unfortunately received more.

A vote was taken, and the remit was carried by 25 votes to 22.

Mr. R. J. Glasgow asked, if the Government acceded to the conference's request, would the payment be made from the Dairy Industry Account?

The chairman: I don't think there is any doubt about it.