REDUCED BY HALF

Manawatu Standard, Volume LVII, Issue 276, 21 October 1937, Page 9

REDUCED BY HALF

DAIRY BOARD LEVY. ANNUAL WARD CONFERENCE. Features which would mark the pretent season’s operations in the dairy industry were outlined by representatives of the New Zealand Dairy Board at the annual conference of the Middle Ward in Palmerston North to-day, when factory delegates were informed that the board’s levy for this year had been reduced by half, owing to its smaller financial requirements, but that, owing to the mounting costs of handling charges, export freights had increased by 2-J per cent. It was stated that emergency reserves of cheese crates and butter boxes were being established at two North Island centres, that endeavours were being made to foster a national farm instruction service, control of the bobby calf industry by the board, and the establishment of an independent organisation for research into animal diseases in New Zealand. Mr A. Linton (Middle Ward representative on the Dairy Board) presided, others present being Messrs A. J. Murdoch (chairman of the board), C. M. Hume (herd recording supervisor for the board) and T. C. Brash (secretary). Dairy companies represented by delegates were Awahuri, Kairanga, New Zealand Farmers’ Dairy Union, Glen Oroua, Tokomaru, Taihape, Levin, Apiti, Bainesse, Manawatu Reliance, Mangawhata, Oroua Downs, Rangiwahia. Shannon, Rongotea, Taikorea, and Rangitikei. MARKET TRENDS. Commenting that the meeting, through various delays, was being held two months later than usual, the chairman stated that during the past twelve months they had seen the guaranteed price scheme in operation. The Minister had estimated a deficiency of £650,000 in the dairy industry account at the Reserve Bank for that period, but owing to the fact that 20,000 tons of butter and 10,000 tons of cheese were in store at the end of the season, this came into the current year’s account, reducing the Minister’s estimate of the deficiency possibly by £150,000 or £200,000. Another feature was that the export market had risen considerably since on the prices being realised then, and taken into consideration by the Minter. Cheese had realised about 66s a cwt. on the London market, and the guaranteed price had been equivalent to 61s 3d so that, on the basis of over £4 a ton, the cheese account had contributed about £400,000 or £500,000 to the pool. It was expected that, when the accounts for the year were wound up, the Government would honour an undertaking given the board to increase the differential payout on cheese from lid to 2d per lb. butterfat. The board, Mr Linton added, had offered to provide £2500 annually for five years towards the cost of research into animal diseases which caused loss to this country, and the Government had set up a Bureau of Animal Husbandry, but Mr Linton considered, after discussing the matter with Dr. Hucker, the American expert now in Palmerston North, that a concentrated eff6rt should be made to solve the problem of animal diseases in New Zealand. All sections of the primary industry should contribute, with the assistance of the Government, to the efficient organisation of an Animal Research Bureau as a separate institution. Steps were now being taken to bring Professor Hanp mond from Cambridge University to advise the Government on these lines. Continuing, Mr Linton said it was his opinion that the large increase in the price of cheese crates and butter boxes was due primarily to the higher wages and the introduction of the 40hour week in the milling industry. He stated that Mr Murdoch would deal with other aspects of the board’s ac T tivties. UTILISATION OF SURPLUS. Dealing with the guaranteed price ■cheme, Mr Murdoch said that it had been stated that if there was a surplus available in the account last year it would be distributed to the industry, but he took that as meaning it would be applied to research activities, eta., and not paid out to the factories. However, this year, any loss or surtlus would remain in the dairy inustry account. Suggestions that the board had no longer any control in the handling of the Dominion’s produce were refuted by Mr Murdoch, who said the Government was using that machinery in putting into effect its marketing plans. The whole system, with the forward arrangements had been taken over by the State, and past Dairy Boards should be given credit for establishing such an efficient organisation. Not requiring the same amount of money as in the past, said Mr Murdoch, the present board was reducing the levy by half to 1-IOOa per lb. on butter and l-200d per lb. on cheese. It had not the same commitments as previously, having last vear paid over to the Government £IO.OOO for the milk in schools scheme. This year the board had allocated £IO.OOO for farm dairy instruction. However, it had been advocated that the cost of this service should be shared on a 60-40 .basis by the Government snd the industry, which had offered its support in this direction, but no definite indication was vet available concerning the Government’s intentions Without success, the board had pressed cn the Government that the board should be allowed to collect and. handle grading fees: but it was considered that tne industry was at least entitled 0 statement as to how these were 1 burned. . , ,l„ Pavments would be accruing to the dairy factories about. Christmas from the butter box pool. The board had felt that, as an emergency measure, reserves of boxes and crates should be established, in order to ensure continuity of sunrdv. and this was being done at Feilding and Trankton. Because the industry could not take the risk of a breakdown m these requirements. the Minister had £ive authority for the importation trom Sweden 'of produce containers numbering up to 750.000. mounting costs. Continuing, Mr Murdoch stated that costs in the butter and cheese mdustry were mounting, and becoming Of its chief troubles, while the price lor produce remained • fixed Charge were increasing in every direction, and steps had to be taken to safeguard against the possibility of hold-ups o the waterfront or anywhere else. While Australian producers were securing a reduction, export freight rates from New Zealand were being increased^ by 2j per cent, this year. People could draw their own conclusions, but the facts suggested that the rise was » to local factors and higher hancii b charges. ]>een made to the An approach bad I:« a , lt ho- ity Minister to grant the board ain to regulate tlie ,^ J th ' is f Air Maraud lie bad agreed to ■ arisen stag s» tssa? u—i

and no control was being experienced at present in this direction. It was honed to secure this authority for next vear utilising existing organisations wherever possible in devising a national svstem of control, without eliminating " reasonable competition as trade restrictions were irksome. The board felt that it could run the business satisfactorily and reduce overhead costs. Arrangements had been made to offer small subsidies to exporting films fr l anproved advertising in order to Btimu--1 itp trade in the East but, owing to hith tariffs and other, difficulties the prospects of developing a large, trade P tiffiere but in Great Britain appeared to bs poor. Nevertheless, they to guard against the danger of quantitative restrictions being imposed i ’’ -rtc to Great Britain. o 'concluding, Mr Murdoch said the board was continuing its research srraiits allocations for tins purpose totalling £7500 this year.