RATIONALISATION

Grey River Argus, 12 September 1935, Page 6

RATIONALISATION

N.Z. DAIRY INDUSTRY What Will It Mean ? BIG STICK DENIED. (Per Press Association) PALMERSTON N., September 11. In the course of an interview, Sir Francis Frazer, chairman of the Executive Commission of Agriculture, which is visiting this centre to hear evidence by dairy companies, said it was not the intention of the Commission to use the big stick to the industry. However, after all informa tion had been collected the Commissioner would have to frame some broad principles for rationalisation of the cream and milk supply. The Commission was holding its hand because it was more satisfactory, owing to the diversity of local conditions, to get companies concerned to make arrangements best adapted to their own circumstances, as well as give them a voice in any such decision. Further, the Commission was not doing anything of a compulsory nature at preRent because it had found the conditions varying, and there were so many cross currents and complications that it had decided to secure as much information as possible about the diffi culties existing.

Both the Dairy Board and the Cora mission at present, were jointly con .sidering the whole question of export market, stated Sir Francis. The stock position was very largely responsible for the rise in butter prices, also the shortage of Australian supplies early in the season. The price is still operat ing, but it is not known what effect speculators later will have on the market. “We can only hope the indications, such as show a seasonal drop in prices will be delayed longer than usual.”

Discussing cheese payments, as compared with those for butter, Sir Francis commented that this was a difficult problem. Cheese milk suppliers should be receiving 2d per lb. more than butter factory suppliers, because of the extra costs they had to meet, but actually in some cases they had been receiving a little less. Cheese factories naturally wanted to retain their identity. Some had their liabilities, but it was a serious thing to have to decide whether the farmer should supply a cheese factory for an indefinite period, when the possibility of his going to the Mortgage Court for relief or keeping out of it, depended upon the difference in payments. The Commission and members of the Dairy Board are now in conference with delegates from dairy factories in Manawatu and the West Coast, and will later undertake an economic survey of the industry in this area, at the request of the Dairy Factories’ Association.