BUTTER PRICE

Hokitika Guardian, 20 September 1938, Page 5

BUTTER PRICE

SATISFACTION EXPRESSED IN TARANAKI. ‘.per Press Association—Copyright). HAWERA, September 20. General satisfaction with the guaranteed price is expressed among the farming oommuhity in 'South Taranaki, although there: is some disappointment that- the , Government did not accept the recommendation of the advisory committee. . ; The committee was given the basis of the average for! the Dominion to work on, hut in the case of a; lafge number of South Taranaki factories, the average was higher than the basis, so that increase to Taranaki would be less than to some other districts. One,farmer’s statement' that,, the. industry should be well satisfied with a price less than the committee’s recommendation, so that a reserve could be established, was a ; point in condemnation of the Government’s policy by reason of the fact that it had made no provision for future years.

It was stated by one company secretary, that another declared the price was'not,disappointing as' far, as Taranaki was concerned. The price is reasonable, and the wonder seems to be how long the Government can keppi, going at that price., He said action of the Government, however, in reducing the price’ recommended by the committee, proyes it has no faith' in its y own scheme and that it must take no r tice of world markets for price fixation. This is despite the fact that internal co6ts may. rise to such a level as wcrulp justify the guaranteed price and which would be much higher than any government could pay.’’ This company secretary considered that anything over 16d should show » good return to a farmer, provided he is not faced with labour troubles.

, In another quarter it is considered that the Government’s ability to pay the prices • annoiincecjl (.. was; dependent on’"'overseas ; markets,'.and .if these' rea? lisations 'did. not average .thosey of last season, ~ ifmight ‘ fie assumed that' Government would invoke the powers under. t)ie Act arid make a reduction. ’ This was a point farmers should note carefully,' for inasmuch as,' increases granted in-the past, season were pro rata over the whole season, ,it might be assumed that any decrease would operate pro rata: also. ;. ‘.The opinion was expressed therefore that when preparing the budget for the Reason, farmers would bo well advised to make allowances for such a contingency.