N.Z. DAIRY PRODUCTION

Grey River Argus, 12 May 1944, Page 7

N.Z. DAIRY PRODUCTION

WELLINGTON, May 11. Commenting on a Dunedin report that dairy production had shown a decline of twenty-five per cent, in two years, the Minister of Agriculture said the statement was quite incorrect. It was made' by the South Island Dairy Association. . Mr. Roberts said he had no desire •to minimise the fact that there had been a decrease in dairy production since 1941/42, but it seemed the Dunedin report was based on publicised gradings of butter and cheese for export, thus completely overlooking the considerable quantity of dairy produce supplied to New Zealand ana tne Allied armed forces. The correct basis of comparison wa's the total production of milk and cream for manufacture into butter, cheese and other milk products. On that basis, the decrease between 1941/42 and 1943/44 dairy seasons was approximately fifteen per cent. AUSTRALIAN DAIRY INDUSTRY. CANBERRA, May 11. An increase in the Australian dairy subsidy of at least £1,000,0.00 over the £6,500,000 paid last year is expected as the' result of., a Federal Cabinet decision to changb the basis of the subsidy. Retrospectively from April _ 1, the basic subsidy of 3i- per lb. will be paid on commercial butter throughout the year. Additionally the subsidy at the rate of 2d per lb. will be paid during “non-flush” months. The total subsidy will thus average 4Jd per lb over the production of the whole year. ' Announcing this, the Acting-Prime Minister (Mr. Forde) said Cabinet had increased the amount of the subsidy and related nayments more closely to the higher costs in "flush’ months in each State, with the object of stepping up oroduction in those months. On the output of 180,000 tons of dairy products, the total subsidy would be approximately £7,500,000 or £1,000,000 more than the payment made last year. The subsidy I plan will be operative for two years from April 1, but will be reviewed by the Government at the end of the first year and an announcement will 1 then be made whether the scheme will ue extended for the third year.