LOWER DAIRY OUTPUT

Matamata Record, Volume XX, Issue 2020, 27 March 1939, Page 6

LOWER DAIRY OUTPUT

THE REAL REASONS Farmers Not “ Going Slow ” Reasons for the falling off in the production of dairy produce are stated in replies received by the Morrins- * ville branch of the New Zealand Farmers’ Union from the dairy companies operating in the district. The Farmers’ Union circularised the dairy companies on this subject with a view to silencing effectively slanderous talk about farmers curtailing production for political reasons. Extracts from the reply received from the Morrinsville Dairy Company • are given below. The opinions given are endorsed in the letters received from the other dairy companies. After-effects of Eczema “ The autumn of 1938 saw the visitation of the scourge of eczema to the dairy herds, and many cattle were destroyed through this prior to last winter. A still-greater number, |

however ,appeared to be less acutely affected by the disease and were carried forward into this season. The latest effect of the eczema which many of these cows carried became rapidly evident upon their coming Into profit, and many farmers who con- , sidered that they were facing the new season with herds of 80 per centum in number of the previous year found only 60 per centum and down to 50 per centum of their normal numbers. “ Reason No. 1, therefore, is increased stock losses due to the eczema outbreak. The ignorant may argue and say ‘ Why did not the farmer purchase extra cattle to fill up these losses ? ’ Last autumn and winter every efTort was made to do this, and the very limit of credit was extended to those farmers seriously affected to purchase extra and replacement stock by the farmers’ own organisations after the Government had in effect refused to assist. By the time that the full effect of the epidemic was observed—in September and October—-replacement stock was unprocurable. Unfavourable Weather “Secondly, it is necessary to review the weather conditions of the

past nine months in relation to grimary production and to remind critics of the farmers that weather conditions do affect production. Last autumn was one of sudden change from drought conditions to luscious soft feed, which quickly disappeared through a relatively-hard winter. Hay and ensilage supplies had been used Up completely through the autumn, and farmers faced the new season with a minimum of feed. Spring and summer conditions of this season have been comparatively bad also. Continual wind has kept pastures short and behind the requirements of the cattle. “ Apart from these two main faciors which have influenced a decline in production of dairy produce this season there are others no less effective in their accumulation. Reward for Farm Labour “No longer does the farmer go blindly forward without regard to nett returns. In its wisdom the Government has fixed a price .for dairy produce theoretically calculated to yield the farmer £4 10s per week as a ‘ labour reward.’ The wages for farm employees are fixed at £3 12s 6d per week for unlimited hours of work per week. What inducement is there in these wages for the employer and employee to work longer hours—overtime without extra pay to counteract the seasonal conditions? “ Under these conditions who could reasonably blame the farmer if he did go slow? But of that there is no suggestion. A genuine effort has been made to keep farming production up to the levels of previous seasons, but there has been no encouragement from any source to increase production. Must Have a Profit Margin “ Until the Government and the people generally understand and appreciate that the necessity for a profit margin over and above wages of management applies in farming just the same as in any other industry the primary production will languish. As long as the margin between costs and returns tends to converge, whether by reason of tariffs, diseases or costs generally, so will production tend to decline. “ What other manufacturer is asked to produce articles to sell at a fixed price and whose flgur'es of cost are not accepted by the Government? ”