THE H.B. TRIBUNE FRIDAY, MAY 4, 1934 THE DAIRY COMMISSION.

Hawke's Bay Tribune, Volume XXIV, Issue 119, 4 May 1934, Page 4

THE H.B. TRIBUNE FRIDAY, MAY 4, 1934 THE DAIRY COMMISSION.

The order of reference under which the Royal Commission set up to enquire into our dairying industry is to proceed was published in our yesterday’s issue. It is fairly comprehensive in its terms, but might certainly have been couched in simpler and more easily understood language. However, those are minor qualities that are not to be expected in documents of State', and probably, in some respects at any rate, it was deemed prudent to disguise otherwise unpalatable suggestions in diplomatic verbal garb. In the result the Commission is allowed to conduct its investigations over a wide field, so wide indeed that it may well be doubted whether it can be exhaustively covered in the six weeks allowed. Briefly put, the enquiry is to concern itself with a consideration of existing and potential markets, home and oversea, for dairy products, with the possibilities in connection with the manufacture of milk products otht# than butter and cheese; with the possibility also of finding other and profitable use for land now carrying only dairy herds; with improvements that might be made in the conduct of the industry from the byre to the consumer, reduction of overhead and working costs being kept in view; with means for extending further assistance to the dairy farmer, and with methods of co-operation with other producing countries. It is perhaps worth while noting that, while the scope of the investigation is thus broadly stated, there is no direct reference whatever to the really fundamental question that is at issue. That is the raising of selling prices in our chief market, Great Britain, to a remunerative level for both Home Country and Dominion producers. That some such intention is hidden away in the somewhat obscure language of the order is quite possible, but it certainly does not appear on the face of it. From this we may perhaps draw the inference that our own Government’s intention is to keep this phase of the problem entirely in its own hands, thus leaving it with complete freedom in its forthcoming discussions and negotiations with those of the Old Country and Australia. That, at any rate, is the impression that, is gained from a first perusal of the order. Concurrently with the appearance of the order of reference, we had in our yesterday’s issue more than one indication of the need of and opportunity offered fop early action. One of our cables, for instance, spoke of by Old Country producers of virtual bounties that, are enjoyed by both Denmark and Holland in their competition with them and ourselves on the British' market

Then, again, we had close estimates of our butter output for the production year just about closing. These showed, that the quantity available for export has .been nearly 10 per cent, greater than that of the immediately preceding year, which, in turn, was nearly 23 per cent, bigger than for the year before. When we consider that all this immense expansion of production has been going on here, with an even greater, on a percentage basis, in Australia, virtually all being dumped into the one market, we can readily understand how almost impossible it is to bring about -an adequate rise in selling values. It is with this, for the time be ing the basic problem affecting the Old Country as well as Australia and New Zealand, that our Government has undertaken to grapple, those directly representing the industry itself having to confess the failure of their own efforts. The task is not going to be any easy one, with so many divergent and, in some cases, conflicting interests that have to be consulted by each party to the discussion, and especially by Great Britain. An instance of this is to be found in another of yesterday’s messages which showed how greatly the value of Great Britain’s exports to Denmark has been improved as the result of a mutual trading agreement. The significance of this is brought out when the London ‘‘Daily Telegraph” is to-day quoted by cable as saying that “Britain’s refusal to sacrifice the foreigner is due solely to the need for retaining her export markets.” The logic of this should be fully recognised by our own producers, for only a decided increase in Britain’s export trade is going to afford her people the capacity to buy our own primary products at prices remunerative to the producer. A good deal, too, may depend upon the outcome of the hurried consultation to-morrow with Mr. S. M. Bruce, as representing Australian interests, for sympathetic consideration and co-operation from that quarter would obviously ease the problem.