DAIRY PRODUCE PRICES

Greymouth Evening Star, 20 September 1938, Page 5

DAIRY PRODUCE PRICES

TARANAKI OPINIONS.

(PER PRESS ASSOCIATION.]

HAWERA, September 20.

General satisfaction with the guaranteed price is expressed among the farming community of South Taranaki, although there is some disappointment that, the Government did not. accept, the recommendations of the Advisory Committee. The Committee was given a basis of the average for the Dominion to work on. but in the. case of a large number of South Taranaki factories, the average was higher than the.basis, so that the increase to Taranaki would be less than some other districts. One farmer’s statement was that the industry should be well satisfied with a price less than the Committee s recommendation, so that a reserve could be established. It was a. point in condemnation ol the Government’s policy, by reason oi the fact, that it had made no provision for any reserve for future years, stated one company secretary. Another declared the price was not disappointing as far as Taranaki was converned. “The price is reasonable, and the wonder seems to be how long the Government can keep going at that, price.” He said “the action of the Government, however, in reducing the price recommended by the Committee proves it has no faith in its own scheme and that it must take notice of world markets for price fixation. This is despite the fact that internal costs may rise to such a level as would justify the guaranteed price, and which would be much higher than any Government could pay.” This company secretary considered that, anything over 16d should show a good return to the farmer, provided he was not faced with labour troubles. In another quarter, it was considered that the Government’s ability to pay the prices announced was dependent on overseas markets, and if these realisations did not average those of last season it might be assumed that the Government would invoke the powers under the Act. and make a reduction. This was a point farmers should note carefully, for inasmuch as the increases granted in past seasons were pro rata, over the whole season, it might be assumed any increase would operate pro rata also. The opinion was expressed, therefore, that in preparing a budget for the season, farmers would be well advised to make an allowance for such a contingency.