ADVICE TO DAIRY FARMERS

Hawera Star, Volume LIII, 30 September 1933, Page 4

ADVICE TO DAIRY FARMERS

RECENT RISE IN PRICES ‘ ‘OVER-OPTIMISM UNJ USTIFIED” Advice to dairy farmers that not too optimistic a view should he taken of the recent rise in prices was given by Mr J. Cocker, chairman of directors of che South Taranaki Rural Intermediate Credit Association, in his address to shareholders at the annual meeting in Hawera yesterday*. Dairy farmers could assure themselves that it would be a long time, if ever, before they saw the prices of the past again, said Mr Cocker. They should not bank on getting a great deal more than last year, as there was no reason to believe that prices would be much better. Unfounded optimism was as bad as rank pessimism. Mr Thomas Baxter had told them that the quota was definite, and that the Imperial Government had promised to restrict imports. New Zealand had. yet to find a profitable market for its surplus of dairy produce. The''price for dairy products was no better than it had been 12 months before: in fact cheese was lower. It was true that stocks were diminishing rapidly, but they had not yet reached the level of last year. There had been recent rain in the northern hemisphere, where production might not be as low as had been anticipated. _ . Nor did the monetary position inspire confidence, added Mr Cocker. The world’s debts amounted to £26,000,000 000>, of which only one-third was covered by gold. It was impossible tor these debts ever to be liquidated and the load of interest on them strained the ability of every Government. Until confidence was restored money would not be released. The price of land in New Zealand was too high and farmers were unable to pay their interest. The interest was piling up until the .security did not cover the mortgage, therefore some adjustment would have to be made; interest reduction was not enough as it would be impossible to refinance on the present basis. Sheep farmers had had a harder time than dairy farmers for, whereas of cows had been worth only the eourvalent of three in good times, wool had been only one-fourth as valuable. However. it appeared that .sheep fanners would come into their own earlier. He understood that lambs would open up at from 18s to £l, a 40 per cent, rise over last season. . ' He was sure that if tlie. prices toi sheep products went up a number of farmers would go back to sheep, jhis would reduce exports of dairy produce so that the quota would not be felt «o much. However, lie did not like Hie ouota. as once the principle was established it would be difficult to have it removed. The fight against at was just.