DAIRY INDUSTRY

Hawke's Bay Tribune, Volume XXIV, Issue 96, 6 April 1934, Page 5

DAIRY INDUSTRY

REMEDYING PROPOSALS Mr. Goodfellow’s Plans SHOULD PREPARE FOR WORST (By Telegraph Press association.! AUCKLAND, April fl. Specific proposals for remedying the state of the dairy industry are made by Mr William Goodfellow tn the course of a lengthy statement. Mr Goodfellow says that the recent panic policy of our political leader* was to be deplored, though in justice Io Mr Forbes it should be said that be obviously was never keen on restriction of the Dominion’s exports. Mr Coates, en the other hand, for some time past had been obsessed with the need for planning everything, and the dairy industry appeared at present to be his particular hobby. Mr Masters could be relied upon to advocate whatever best suited secondary industries. It was questionable whether either gentleman had ever given the question of dairy export restriction serious thought.

Mr Goodfellow traversed the quota discussions with Great Britain and the dairy conference. He said that on March 22 and 23 the Dairy Board met the Government, and contrary to the board's declared policy and, one could only assume, under extreme political pressure, finally agreed to a delegation being sent to London headed by a Minister and with power to act. This meant that the Dairy Board had placed the industry in the hands of a member of the Government with power to enter into agreement fo restrict dairy exports The Dairy Board was requested to meet the Government again on April 11 to present and discuss a restrictions scheme which would form the basis for discussions at the Empire Conference in London. . The latest reports, however, were that Britain had again intimated that she did not desire a conference, and the dairy farmers of New Zealand would be exceedingly relieved to know that.

LIKELY DEVELOPMENTS

Discussing likely developments after the expiration of the Otttawa agreement, Mr Goodfellow expressed disagreement with the view that Britain would not make a sepa ite trade

agreement with New Zealiu i It was quite conceivable, he said, that the British import tariff would be based on the results of the operation of the Ottawa agreement. If so, New Zealand would not make a very satisfactory showing. Her small tariff concession had been more than neutralised by the increased exchange rate, with the result that the British manufacturer was now worse off' than before Ottawa. New Zealand had shown almost callous disregard for her only worthwhile customer. There was yet time, but not very much time, to put matters right Mr Goodfellow said that no one could tell how much longer the present economic blizzard would last. New Zealand should, therefore, prepare for the worst and not continue to hope for the best. When European conditions improved, New Zealand would ones again have no difficulty in selling her dairy produce, provided quality and costs were competitive. PROPOSALS FOR CONSIDERATION. Mr Goodfellow suggested the following propositions for the Government • consideration: — (1) National economy, including a 60 per cent, reduction in the siae of Parliament. (2) Reduced tariff and rates. (3) Bring the exchange back to par with sterling. (4) Replace the exchange premium with a temporary subsidy. (5) Encourage dairy farmers to breed pigs, ewes and poultry. (6) Maintain the quality of our dairy produce. (7) Reorganise the Dairy Board. (8) Actively push sales in all new markets.

(9) Establish three central patting plants in the United Kingdom. (10) Push and advertise Fern Leal pat butter throughout Britain. lu applying these proposals, Mr Goodfellow dwelt upon the sale of butter in pats, saying the board should establish three claroe plants in London, Manchester and Glasgow, and gradually increase that trade. By that means Danish prices could be obtained for finest New Zealand butter. NO OVER-PRODUCTION. In addition to a marketing campaign in Britain, the Dairy Board should have representatives at Hong Kong, Montreal, Panama, and one for the Mediterranean. In conclusion, Mr Goodfellow said that there was in reality no over-pro-duction of dairy produce, but underconsumption. New Zealand’* climate excelled all others for tho production of high-grade butter and lamb. By setting our house in order now we should profit to the full when the world outlook brightened.

LIMITATION OF EXPORTS

Reversal of Policy (Received 6, 10.45 a.m.) SY DNEY, April 6 I he ‘ Sydney Morning Herald” sat* that although last year, when proposals were made lor the limitation <>i buttei exports from Australia to the United Kingdom the Australian Dairy Produce Control Board opposed the plan, it is expected that this policy short 11 w ill lie reversed. Ihe Rl. Hon. S M. Bruce conferred with represent al ivi's of Hie dairy industry and it is considered certain that any action decided upon by Australia will he made in conjunction with New Zealand. Mr Bruco will visit New Zealand on the return journey to Ixmdon and confer with the Dt. Hon. G. W. Forbes on this and other subjects.