THE MILK SUPPLY

Evening Post, Volume CXXXIV, Issue 25, 29 July 1942, Page 4

THE MILK SUPPLY

PRICE FIXATION

MR. POLSON VIEWS PROBLEM

(P.A.) CHRISTCHURCH, July 28,

Confidence that later the Government would be able to establish some form of national authority which would • see that prices were fixed for milk to give a just deal to producers, venders, and cbnsumers was expressed by the Minister of Primary Production for War Purposes (Mr. Poison) in an interview.tonight on his policy

on the milk supply question.

"One can say definitely that a shortage of city milk looms ahead," he said. "The whole question is causing some concern because conditions in the industry are not stable and there are variations in the price received by producers. When producers are depending on a price which is inadequate, the producer-vender produces for the summer months only and endeavours to buy milk from other producers in the remaining seasons. There should, be rates fixed for summer, autumn, and. winter, to enable the producer to carry on profitably through the winter when special feed supplies have to be provided, or sometimes stock; has to be. housed. • ;"I have always believed in some form of national control for urban milk supplies, but this control should not be rigid. We should provide for meeting the particular circumstances of each case. The controlling authority, however, should have sufficient powers gradually to build up a system which will be fair to both producer and consumer."

At the present time additional difficulties had been created by the tyre and petrol shortages and the scarcity of man-power, said*Mr..Poison. Those factors demanded maximum economy, as waste of any nature could not be tolerated. ■ With those . handicaps in mind, a national plan- should in his opinion be formulated,, under which everyone would be treated equitably and the producer be encouraged to carry on. '. . . ■ A difficult problem presented itself. Wellington, for example, had a winter price of Is s£d a gallon at the farm gate on a 4.4 test That was probably the highest winter price, while the price in Dunedin was' probably the lowest of the four main centres. The Price Tribunal merely fixed prices and had no power to deal with quantities. Furthermore, it would be' hopeless to tackle the problem by attempting to fix prices for every town in the Dominion. , "In the case of Christchurch, the Price Tribunal fixed lid a gallon as the price for August," said Mr. Polson! "I am disappointed that the increase could hot have been more, but a greater increase would have meant a rearrangement of prices throughout the year. The whole matter requires more detailed consideration,- and I suggest that producers might be wise to form themselves into some.organisation which will enable them to negotiate with the venders. In the' meantime they should also use the Farmers' Union." ' •.