DAY OF RECKONING

Gisborne Herald, Volume LXX, Issue 21148, 16 July 1943, Page 2

DAY OF RECKONING

DETERIORATING FARMS

DAIRY PRODUCE PRICES KIA ORA MEETING’S VIEW Rising costs, becoming higher every year, were viewed with apprehension at the annual'meeting of the Kia Ora Co-operative Dairying Company, Limited, held at Makaraka yesterday, and the meeting' decided to support eflorts being made at present to secure some relief to dairy farmers. Mr. W. A. McCliskie considered, that dairy farmers were worse off now, even with the increase provided for the season by the Government, than they were a year ago. and he urged that some steps should be taken to compensate farmers for the greatly increased costs.

The chairman of directors, Mr. M. Doyle, stated that the cost of manufacture by the company had increased to 2.757 cl per lb of butterfat from 2.682 d. the previous year and 2.523 d. in 1940. but that did not show the true indication of the actual increase in the cost of materials because the company was fortunate in having large stocks of materials on hand in 1940. Mr. Doyle gave some comparisons in costs in the year 1938 and in 1942. saying that butter boxes had risen from Is 9id to Is llid. paper from £6.1 to £174 a ton, salt, from £7 15s to £l2 a lon, nails from £3O 12s 6d to £54 a ton. and motor oii from 4s lO.id to 7s 81,d per gallon. Slabilished Costs Dairy farmers certainly had a id. rise last season, Mr. Doyie continued, but the sheep men had received the equivalent of nearly 2d per lb., even if they had not received it all in immediate cash. The Government was determined to stabilise costs at the 1942 level, and it had been suggested that paper should be stabilised at £l4O a ton, or more than half of what it was in 1938. but if that was the way iu which the Government was going to attempt ihe stabilisation it would be weighted against the dairy farmer. The secretary, Mr. J. H. Sunderland, said that the Government wished to stabilise costs at the 1942 level and prices at the 1938 level. Instead ol i.he id rise that had been given, it had been proved that an increase of lid would have been nearer the mark if the dairy farmers were to have been justly treated. The industry would lie satisfied if the costs were taken bad; to the 1938 level, and a special committee that had been set up was working with a view to securing a subsidy or some coverage to counterbalance increased costs. Mr. Doyle stated that the Hon. W. I£ Parry.'Minister of Internal Affairs, had said that because farmers were paying their rates and most of their debts they must be in a good position, but the Minister should be reminded that farmers could not spend their money on fertilisers because they could not get them, while fencing materials were not being purchased as they should because they were too costly. The farmers had their cosh and were paying their rates, hut the farms were deteriorating. “There is a day of reckoning coming.'’ Mr. Doyle said, “and we will have to face the cost of deteriorated farms when conditions return to normal."