DAIRY INDUSTRY

Hawke's Bay Tribune, Volume XXIV, Issue 77, 13 March 1934, Page 5

DAIRY INDUSTRY

IMPORTANT CONFERENCE Concern at Low Prices EFFORT TO IMPROVE POSITION (By Telegraph-Pres* Association.) WELLINGTON, March 13. The Dairy Conference, suggested by the Prime Minister as preferable to a Royal Commission, as suggested by the New Zealand Farmers’ Union, opened at Parliament Buildings this morning. Mr Forbes, in welcoming the delegates, stated that the reason the conference was called was the concern at the very low prices dairy produce was bringing. 'lllO conference was a large one, but it had been thought it would be better to have those with practical interests in the dairy industry meet so that they might have the information the Government possessed and the Goveminent hear what they had been thinking in regard to the future of the industry. He assured the conference that the Government had been giving a great deal of thought to the dairy industry, because not only did low price* affect the position of the farmers themselves, but also the Government in its finances. The proposal was to devote to-day to a general discussion of the industry and suggestions that might be made for its improvement, and then they could resolve the conference into committee. Details could then be taken in hand and committees set up to go into particular points and report. Mr Forbes went on to refer to the opinion frequently expressed that New Zealand, by offering Great Britain practically a free trade tariff there could be no question of quantitative restriction of dairy produce into Britain from New Zealand. He proceeded to read exchanges of cablegrams with the British Government in which British Ministers made it clear that the question was not one of trade, but a question of the position of British farmers. The cablegrams showed that owing to the milk marketing scheme import regulation was no longer a matter of immediate concern at Home, but was a matter for the dominions themselves. If they could come to some agreement in regard to regulation it might be possible to hold the market for British and Dominion farmers. The New Zealand Government, Mr. Forbes said, had pointed out that unless it had the cooperation of the dairy industry itself in this country it was not possible for the Government, to come to any agreement. SECURE FOR NEXT TWO YEARS. Mr. Forbes pointed out that the present position was secure for the next two years. He stressed the necessity of maintaining the goodwill of the British farmer. If New Zealand got out of step with the people in England it was bound to affect the popularity of otir produce. What they had to do was to devote themselves to the question of how they were going to improve things. He went' on to say that undoubtedly there had been a drop in quality. He also said that New Zealand had to do very much more to push our products in the face of increased competition from Europe The Rt. Hon. J. G. Coates also extended a welcome to the delegates He pointed out that dairy farmers in New Zealand this season would get a return of not more than 8d a pound Over 70,000 farmers were directly involved. Many of them might be able to get along, but a very great number would find the utmost difficulty in making ends meet. He would like to know how any industry could make progress while producing at a loss, or how long it could get along at all. THE “FARMERS’ BIBLE.” Reierrtng to the Ottawa Agreement, Mr. Coates said it might really be termed the “Farmers’ Bible.” It had led to an extraordinary improvement in prices so far as meat was concerned particularly. He quoted a clause in the agreement to show that m the event of circumstances arising which, in the opinion of the Government either of Great Britain or New Zealand, necessitated a variation in the terms, a proposal to vary them could form the subject of consultation between the two Governments. Mr. Coates referred to Great Britain’s action in subsidising the milk industry for the purpose of converting surplus milk into cheese. As he saw history once England made up her mind there was no going back, and ho emphasised the example of Devon to show what might easily take place in regard to the production of cheese.

COSTS MUST FALL. Mr. W. J. Polson, president of the New Zealand Farmers’ Union, in the course of a speech, said there was one necessity the dairy industry was determined about, and that was that costs must fall. Tariff reduction was essential to lower costs in this country. Mr. W. Grounds said that acceptance of a quota would not have solved the problem. Only along the line of satisfactory distribution of increased consumption the world is capable of could success be achieved, ' be Dairy Board had hesitated to accept anything that might drive the country to the necessity of defaulting in its overseas obligations. Hawke’s Bay representatives at the conference are Messrs D. G. Begley, chairman of directors of the Heretaunga Co-operative Dairy Co., ami A Hansen, of the I'amaki Dairy Co. (Dannevirko). Mr. J H Sunderland, of the Kia Ora Dairy Co., represents the Gisborne district. The conference, called with the object of devising some workable method for improving the position pt

dairy farmers, is really the outcome of a deputation from the New Zealand Farmers’ Union which recently waited upon the Prime Minister, the Minister of Employment, Hon. Adam Hamilton, and the Minister of Agriculture, Hon. C. E. Macmillan, to ask for the ajspointment of a Royal Commission to investigate the industry and formulate some plan for its future development. This suggestion did not appeal to the Ministers as a sound one, and they considered the people best qualified to put forward proposals for dealing with the industry were the farmers themselves. To thia end they suggested • round-table conference. Thia proved acceptable to the deputation, and Mr. Forbes agreed to take the necessary steps to arrange for such a conference. It has been suggested that the conference will resolve itself into a discussion of whether or not New Zealand: should accept a quota on its dairy eiporte. The Poverty Bay Press says that it is understood that the Gisborne delegate will place before the conference a plea for greater attention by Australia and New Zealand to evenly spreading dairy produce shipments month by month. Representatives of the Farmers’ Union, ward members of the Dairy Produce Board, representative* of the merchant* and the Free Marketing League together with Mr. W. Goodfellow, chairman ol directors of Amalgamated Dairies, Ltd., are *l*o present at the conference.