DAIRY MARKETING.

Manawatu Standard, Volume LIX, Issue 193, 17 July 1939, Page 5

DAIRY MARKETING.

ATTITUDE OF BOARD. MATTER OF POLICY. AN ELLINGTON, July 17. The attitude of the Dairy Board toward tile guaranteed price scheme was outlined in a statement made last night by tho chairman (Mr. AA - . F. Hale) in commenting on the Prime Minister's recent statement. He said that the board had from the outset regarded the scheme as a matter of Government policy, and had co-oper-ated with the Minister of Marketing. At the same time lie stressed that the industry had never asked for the scheme, nor had it had the opportunity of voting independently on the question, and that that section which had original I v favoured it had since found that costs had soared above tho benefits. A meeting of the special committee sot u]i to handle the guaranteed price question on behalf of the industry had been fixed for early in August, said Mr. Halo. By then the Government’s intentions would probably be clarified and the industry would be in a sound position to review the matter in lightof recent developments. “The position which the Dairy Board has taken up from the very inception of tho guaranteed price scheme is that it is a matter of Government policy,” said Mr. Hale. “The board has, therefore. worked in co-operation with the Minister of Marketing and has presented the industry’s viewpoint to him from time to time.” THE COST FACTOR.

The dairy industry had never asked for the guaranteed price scheme, nor had it ever had the opportunity of voting independently on uie question, said Mr Hale, hut m view ol the cost of production in New Zealand to-day tho dairy-farmer had to have some protection.

That section of the industry which

originally favoured the guaranteed price scheme considered that the price was to be a New Zealand price based on the fanners’ costs, hut had since found to its sorrow that its costs of production and manufacture had been running continually ahead ‘of the benefits obtained under tho scheme, said Mr Hale.

The dairy-l’anner’s complaint, particularly during the past season, a lien the standard recommended by the guaranteed price advisory committee had been altered by the Minister of Marketing, was that he was not protected against the steadily rising cpsts. He l'elt that non- that his price, instead of being a price fixed in accordance with the terms of the Act, was simply an average of the market price and did not take fairly into account the high cost under which he was labouring. Mr Hale added that it had been decided at the Dairy Board meeting last Wednesday to call together early in August the special committee set up to handle the guaranteed price question on behalf of the industry. That meeting, comprising representatives of the National Dairy Federation, the South Island Dairy Association, the New Zealand Farmers’ Union and members of the Dairy Board, would closely consider the present position and. if it was thought necessary, the elected delegates to tlie Dairy Board’s Dominion conference would be called to Wellington .

That decision to call the committee together had been made before the Prune Minister’s statement. said Mr Hale, but by the time it met, the Government’s intentions would probably be clarified and could be considered along with other aspects of the matter.