THE PRICE GUARANTEE

Manawatu Standard, Volume LVII, Issue 231, 30 August 1937, Page 8

THE PRICE GUARANTEE

FARMERS WORSE OFF. IF COSTS RISE. AWAHURI CHAIRMAN'S OPINION “It is quite evident that due regard has not been given to the rising costs,” said Mr Neill Campbell, chairman of directors of the Awahuri Dairy Co., when asked bv the “Standard” for his opinion on the new guaranteed prices for dairy produce. “The dairy farmer is nob going to be any better off; in tact, lie will be worse off if costs continue to rise,” he added.

Mr Campbell said that while some consideration was given for quality it was not sufficient. The improved, price seemed to stop with butter grading 94 points, which, in his opinion, was not adequate encouragement to the producer to raise the quality of his produce. “The whole idea seems wrong to me,” declared Mr Campbell. _ “The farmer has little say in the fixing of the price, while the workers have every say in the fixing of his wages.” Mr Campbell also mentioned that factories which enjoyed a local market had been paid, up to now, the old guaranteed price. He hoped that the new price would be made retrospective in this connection as it was to be in the case of produce for export. _ It would, he concluded, be a gross injustice if that were not done.

GENERAL DISAPPOINTMENT. Per Press Association. INVERCARGILL, Aug. 29. Disappointment with the new guaranteed price was expressed to-day by men in the dairy industry in Southland, the general opinion being that the advance will not cover the increase in costs. “In face of the fact that dairymen’s costs have increased during the past year by approximately 3 l-3d lb putterfat, the guaranteed price just announced for the coming season is disappointing, to say the least,” said Mr A. R. Johnston, president of the Southland provincial executive of the Farmers’ Union. “It is hard to understand the reasoning of those responsible tor fixing it unless their object is to turn many of our dairymen to other means of livelihood.

“It would' be reasonable to suggest that the price-fixing committee should have taken the increased and increasing costs more into consideration, since its price last year was based on the previous nine or 10 years of comparatively low prices and low costs of production. “FORCED OUT OF BUSINESS.” “Some dairymen who are in more fortunate circumstances, and these will vary on account of many influences, may be able to carry on, but those who are most in need of help in order to continue to do their part in helping to produce the btilk of New Zealand’s wealth are going to be forced out of business. The industry is being left in much the same position as it was during the depression years. “The Farmers’ Union has pledged its support to a compensated price campaign, which is nothing more or less than a just demand for the gap between the farmers’ costs and prices to be closed either by a reduction of costs or by an increase in prices, which will allow the producer to pay his way in a satisfactory manner and allow him remuneration commensurate with the service he renders and with that obtained by other members of the community who render equal service. “I think that now the very strongest representation should be made to the Government through the compensated price committee, and if the Government still refuses, as it says it does, to listen to the demands, the question of further action will have to be seriously considered.” “TOTALLY INADEQUATE.”

In a telephone interview from Waimate, Mr H. H. Meredith, chairman of the South Island Dairy Association, said that dairy farmers throughout the South Island would be disappointed with the new guaranteed price. With the high costs imposed on the industry by legislation, and the likelihood of a further increase in the near future, the price announced was totally inadequate if The farmer was to be allowed fair remuneration for the service which he gave. “I feel sure I am voicing the thoughts of every farmer engaged in the industry when I say that the price for butter should have been Is 2d and for cheese Is 4d,” said Mr Meredith.