DAIRY PRODUCE PRICES

Greymouth Evening Star, 27 October 1939, Page 3

DAIRY PRODUCE PRICES

DETAILS OF NEGOTIATIONS. WELLINGTON, October 26. “We have never received an offer from the United Kingdom equal to the price we are paying the dairy farmer for his produce,” said the Minister for Marketing (Mr. Nash) in a broadcast address to-night. The Minister outlined the various stages in the negotiations with the dairy industry over the fixing of the guaranteed price for the current season, and also described aspects of the negotiations with the United Kingdom Government concerning the purchase of the Dominion’s surplus dairy produce. Mi-. Nash began by refuting rumours which, he said, were current. A journal, the “Dairyman,” he said, had mentioned that the British Government had fixed a maximum price of 145/- for butter; but that had nothing to do with the New Zealand Government which was not getting that price. The figure mentioned was the price fixed by the United Kingdom Government for all butter imported into the United Kingdom. It was a price fixed when the supplies were short, and when the Dominion’s major supply had not reached there in large quantities.

"I do want dairy farmers to understand that the price we are paying to them to-day represents 130/- for butter and 77/6 for cheese,” he continued, after explaining that, the' figures represented sterling. For last season’s butter sold to date, New Zealand had recovered Jll/4 per cwt sterling, and had'paid out 124/- sterling. For cheese it bad paid out 73/9 sterling, and had recovered 59/11. The present deficit in the Dairy Industry Account for butter was £1,349.807. and for cheese £1.182,829. Against this, there was a surplus from the previous season of about £500.000.

“All our butter was requisitioned by the United Kingdom Government oil September 22, and the price- we are to receive for it has not yet been determined,” Mr. Nasri continued. Cheese was not requisitioned, but it, was being sold at 66/-. and the Government was paying out 73/6 for it. Some statements had suggested that the Government had been making millions of pounds as a result of its dealing in dairy produce, the Minister said. Actually it had not been making a penny, but had been giving the dairy farmer more than it. had been receiving. ' ■

Mr. Nash described in detail negotiations between himself and the dairy industry concerning' the guaranteed price. He said that, he had discussed the price with the chairman of the Dairy Board on February 15, and later had stated that he considered that the last season’s price should be continued. His views had been communicated to- a conference of interested organisations. and they had suggested that the Government should accept I the standard recommended by last year’s commit tee.

At this stage- of his address, the Minister followed very closely Hie terms of a statcmeiil which aecom panied his recent annouiieemeiil of the guaranteed pr.icecs for butter and cheese for the present season. He described the negotiations that occurred before and after his recent trip to England, and mentioned that shortly after his return the Dairy Board had conveyed to him a resolution offering the Government full <o-oj)e ratio’ll in

the present crisis. Tin* United Kingdom Government

suggested on September 5 that the price it should pay should be based on that of last year, Mr. Nash said. The New Zealand Government was not satisfied that this was sufficient and since then it had been in negotiation continuously with the United Kingdom. Every offer received, however, had been below the price now being paid to dairy farmers. The New Zealand Government had urged the United Kingdom ' Government to increase its offer, pointing out the effect the price offered ■would have on the economy of the Dominion. A further cablegram was sent only yesterday urging the United Kingdom to carry to a logical conclusion the evidence that had been placed before it. “The Government wants to encourage production, and tor pay a decent price to the farmer to enable him to have a decent home,” Mr. Nash said. “I believe that the price is a fair price, and we have endeavoured to get a price, from the United Kingdom that is justifiable from the point of view of national economy, as well as from that of the dairy farmer. We wip do everything we can.”