DAIRY INDUSTRY

King Country Chronicle, Volume XXVIII, Issue 4528, 7 April 1934, Page 5

DAIRY INDUSTRY

“PREPARE FOR WORST.” MR. GOODFELLOW’S ADVICE. SET HOUSE IN ORDER. Specific proposals for remedying the state of the dairy industry are made by Mr. Wm. Goodfellow in the course of a lengthy statement, made at Auckland yesterday. The recent panic policy of our oolitical leaders, he said, was to be delored, though in justice to Mr. Forbes it should be said that he obviously had never been keen on restriction of the Dominion’s exports. Mr. Coates, on 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 was best suited to the 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 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 an agreement to restrict dairy exports. The Dairy Board was requested to meet the Government again on April 11 to present and discuss a restriction scheme which would form a basis for discussions at an Empire conference in London. The latest reports, however, were to the effect that Britain had again intimated that she did not desire a conference. The dairy farmers of New Zealand would be exceedingly relieved to know that.

On Ottawa Results.

Discussing likely developments after the expiration of the Ottawa Agreement, Mr. Goodfellow expressed disagreement with the view that Britain would not make a separate trade agreement with New Zealand. 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 the Ottawa Agreement. New Zealand had shown an almost callous disregard for her only worth-while 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 once again have no difficulty in selling- her dairy produce, provided quality and costs were competitive.

Ten Suggestions.

He suggested the following propositions for the Government’s consideration :

(1) National economy, including a 50 per cent, reduction in the size 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 the dairy farmers to breed pigs, bees and poultry. (6) Maintain the quality of 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 “Fernleaf” pat butter throughout Britain. In amplifying these proposals, Mr. Goodfellow dwelt upon the need foxreorganising the Dairy Board, and upon the sale of butter in pats, saying that the board should establish three large plants in London, Manchester and Glasgow, and gradually increase that trade until the bulk of New Zealand butter was sold in pats. By that means Danish prices could be obtained for the finest New Zealand butter. In addition to a marketing campaign in Britain, the Dairy Board should have representatives at Hong Kong, Montreal and Panama, and one for the Mediterranean.

In conclusion, Mi-. Goodfellow said that in reality there was no overproduction of dairy produce, but under-consumption. The New Zealand climate excelled all othei-s for the production of high-grade butter and lamb. By setting our house in order now we should profit to the full when the wox-ld outlook brightened.