THE GUARANTEES

Grey River Argus, 30 August 1937, Page 5

THE GUARANTEES

NEARLY Is 2d

New Butter Price

CHEESE NEARLY Bd.

[Per Press Association]. WELLINGTON, August 28.

All butter manufactured for export in the current season will be purchased by the Government at 13id per lb., and this price should result in a payout by the average efficient dairy factory of not less than 13.88 d per lb., of butter fat supplied lor butter. This announcement of the guaranteed price for butter was made this afternoon by the Minister of Marketing (the Hon. Walter Nash), after a lengthy meeting of Cabinet. Cheese will be purcnased at 7.54 d per lb., which should return an equivalent of not less than 15.88 d per lb., of butter fat for cheese. The cheese differential of 2d per lb., is in accord with the policy announced two months ago. .All other arrangements with regard to grading will be in accord with the procedure at present being followed. The prices for last season, announced on August 4th, 1936, were: Finest grade creamery butter 12 u-16d per pound; first grade whey butter, 11 9-16 d per pound; first grade cheese, 6 13-16 d per pound. COMPENSATED PRICE.

A CAMPAIGNER’S STATEMENT.

INVERCARGILL, August 29

Mr A. R. Johnston, President of the Southland Provincial Executive of the Farmers’ Union, referring to the new guaranteed cheese and butter prices, sai.t: “In the face of the fact that dairymen’s costs have increased during tiie past year by approximately 3 l-3d per lb., of butterfat, the guaranteed price just announced for the coming* season is disappointing to say the least. It is hard to understand the reasoning of those responsible for the fixing of the price, unless their object is to turn many of our dairymen to other means of livelihood, r.t would be reasonable to suggest that the Trice Fixing Committee should have taken increased and increasing costs more into consideration, since its price last year was based on the previous nine or ten years of comparatively low prices and low costs of production. Some dairymen, who are in more fortunate circumstances, and these will vary on account of many influences, may be able to carry on, but those who are most in need of help in order to continue to do their part in helping to produce the bulk of New Zealand’s wealth, are going to be forced out of business. The industry is being left in much the same position as it was during the depression years. The Farmers’ Union has pledged its support to the compensated price campaign, which is nothing more or less than a just demand for a gap between farmers’ costs and prices to be closed, either by a reduction of costs, or by an increase in prices which will allow the producer to pay his way in a satisfactory manner, and allow him remuneration commensurate with the service he renders, and with that obtained by other members of the community who render equal service. I think that now the very strongest representation should be made to the Government, through the Compensated Price Committee, and it the Government still refuses, as it savs it does, to listen to demands, the question of further action will have to be seriously considered’

A SOUTHLAND RtPORT.

INVERCARGILL, August 29.

Disappointment with the new guaranteed price was expressed to-day by men in the dairy industry in Southland, their general opinion being that the advance granted will not cover increase in costs. ______