THE OUTLOOK

Manawatu Standard, Volume LX, Issue 122, 22 April 1940, Page 2

THE OUTLOOK

DAIRYING IN DOMINION. CLAIM ;rO ASSISTANCE. The outlook for the dairy industry of the Dominion, both during the war and subsequently', was Surveyed by’ 1 tho chairman of the Dairy Produce Board (Mr tV. E. HaJe) at the board’s ward conference in Palmerston North today 7, when lie stated that even the Government must he disturbed at the decreases in production which have taken place, and must realise that remedial measures are needed because of the lack of balance between rewards in country and city. “Assistance to our industry to improve our position can come in three ways,” Mr Hale said: Through an increase in tlie guaranteed price; through subsidies on fertilisers, wages, etc., and through a reduction in our costs. “Under the Guaranteed Price Act tlie farmer is definitely 7 guaranteed a price based on his costs, and when the guaranteed price policy was originally under discussion the whole emphasis was placed on a price that covered costs of production, irrespective of market realisations. Repeatedly we were told that there was no need for us to worry where the money was coming from, and that there was no difficulty in maintaining a ‘New Zealand price.’ We would like to feel that those same ideas were held by the Minister of Marketing to-day, and that wc are assured next season of getting a guaranteed price covering all our costs. You will agree with me that there are more and more of us in the industry coming round to tlie viewpoint that all that wo have to-day is an equalised price, and that the Government itself is trying more and more to work itself into the position of paying no more than market realisations. UNPROTECTED INDUSTRY. “If, for instance, we raise to day the question of an increase in the guaranteed price, we are met with the reply that our produce has been sold lor tile duration of the war, at the present price, but that we have tlie opportunity of raising the question ot increased costs with the British Government once a year. But we are told, too, that the increased costs mentioned are really to be looked upon as increases externally, such for instance as increases in costs of manufacturing materials used in dairy factories. The costs which are worrying us are the increases in New Zealand costs. But in any case, under tlie Act, we should not have to he worrying about- this at all. We arc supposed to l>e protected in our price against these costs increases, but in fact wc are not became of the alterations made to the price recommendations by the Minister himself. “The board has tried to make the Minister see tho unfairness oi his attitude towards the guaranteed: price, but all our representations— ; and we have made them repeatedly j ■ —have been completely without of-: feet. Even if one were to admit that last season’s price was fair when it was brought into eflect in duly, 1938, there is no one who could for a moment suggest that the same price is still lair, when you take into account the cost increases which have taken place since that date. The hoard is genuinely perturbed at the fact that it can make jio impression on the Min ster so iar as the price is concerned. “The British •Government has handled the dairy fanners in tlie Old Country m a very different way. At the outbreak of "the war the Minister of Agriculture there asked them to do everything they could to increase their production, particularly of homegrown feeding stuffs; lie lixed prices a.ud promised that if costs rose their fixed prices would he reconsidered. Costs did rise, very quickly, and within a couple of months there was widespread dissatisfaction. The Minister met the farmers and, what is more, granted an 'immediate subsidy for the months of January, February and March of this year, equivalent to 3d per gallon of milk. The contrast between the attitude taken by tlie British Minister of Agriculture and our own Government, so iar as tlie dairy farmer is concerned, is very striking. “Wc pointed out in a letter to Air Nash what had been done in England, and asked him whether in view ot this, he would take similar action here. “This is the reply wc received: ‘You will agree that the circumstances of the-fanners of the United Kingdom and of those in New Zealand are not strictly comparable. This is particularly true in regard to the subsidy to which you refer. This is being paid in the United Kingdom for milk production during the winter period and is largely associated with tho extra cost of imported animal feed upon which the maintenance of the farm production of Great Britain so much depends. In short, the differences between tlie United Kingdom and the New Zealand position are largely those necessitated by the special conditions ruling in the Home Country at the present time. AVith reference to the costs in New Zealand, every possible step is being taken by the Government through the Price Tribunal and by other means to prevent undue rises in tho prices of commodities. The effect of this policy will in the main be reflected in like degree on all sections of the community, who will share m the benefits of the action taken. With regard to tlie arrangements for the importation of raw materials ior fertiliser the Government is ensuring that these raw materials arc available to fertiliser manufacturers at the prices ruling prior to the outbreak of tho war and the liiaiiuiactmeis in tuin. have undertaken that superphosphate will he supplied to all farmers without increase in price. With the qualification that the war circumstances may compel a modification of policy, tho Government recognises the necessity in the national interest of ensuring the stability of the dairy industry and will continue to take whatever steps may bo necessary for this purpose. This implies that the dairy farmer will receive his fair share of the national income to enable him to maintain his comparable standard of living. At the present time the enquiries necessary to enable the Government to determine the prices to be paid, for next season’s primary production are proceeding and, whilst it may take some time to complete tlie work, these prices will he announced at the earliest possible date and every endeavour will'be made to ensure that the payments for butter, cheese and other products are fair and just, after talcing into account all factors relating dairy industry and the national economy. When I am in a position to do so, I shall be pleased to discuss the matter with members of your board some time prior to the fixing of the price.’ ANSWER UNSATISFACTORY. “I don’t know whether that answer satisfies you, but it doesn’t satisfy me,” Air Hale went on. “The circumstances are not dissimilar except insofar as the British costs rose substantially in a very short time, whereas ours have been consistently rising over a long period of time. Feeding

costs loom very large in England, where concentrates have to he used continuously in the feeding of dairy cattle, but we have heavy production costs, too, and these have certainly risen. What we wanted to draw Mr Nash’s attention to particularly was the immediate and generous response the Alinister of Agriculture made m England to the requests of the British dairy farmers. They went to him with their case, were able to show him that their costs had increasedand got at once some relief. Here in New Zealand,, we as dairy farmers have been able to prove beyond a shadow of doubt that a certain price is needed to cover our costs, but we have not been aide to get Mr Nash to budge one iota from the position he had previously taken up. SUGGESTED SUBSIDIES. “The second way in which the industry can he assisted is by way of subsidies, in some districts the idea is held that the Dominion Dairy Conference definitely rcrused subs.uies to the dairy industry under all circumstances. That is not tne attitude which was taken. What the conference thought was that the guaranteed price itself should cover increased costs and tliat it was far better that these should go into the price rather than that they should be paid in the form oi subsidies. When people in the cities see an indu try such as ours receiving subsidies they immediately think we are in a very happy position, and are thus antagonistic towards any further claims we may make. On the other hand it is our absolute right under the Act to have increased costs taken into the price, and that, we maintain, is wlmt should he done. Me all realise that if the Alinister will not give heed to cur representations there is nothing to ho done but accept subsidies, such for instance as is now being paid by the Government in connection with lertiii or. “Subsidised farm labour lias never been welcomed by the great majority of our dairy farmers, who would very much prefer to employ labour at good rates of pay without the need for subsidy, hut unless the Government radically alters its Public Works and subsidised labour schemes in the cities, T can see no otlmr solution than a farm labour subsidy which will allow Public Works employees to become producers rather than consumers of our wealth. REDUCED COSTS PREFERRED. “The third way in which our industry can he assisted is by way ol reduction in our present costs, and T suppose there is no one who would not prefer to see that method carried into effect. AYe,, as sensible people, know that when we have to sell our produce on the. world's market, it is not sound to have a continually rising price with continually rising costs. Wc do not like the conditions which make us seek an increase in the price, and believe that the only rcallv sound way to tackle the great problems that lace us is by reduced costs. How .can no get these? I venture to say that if ri<dit throughout the country people in every widk ol life nut as much energy and enthusiasm into their work • s tic average dairy farmer costs would he reduced through increased outnut. The Government, or its lenders, know well enough that this js, true. Thev have been busy emuhasising' at their recent party conference that mnro "work is the only way in which more privileges can he secured, but whether they will he aide to get that over with the rank and file of, the workers is another matter. How the attitude of the men in the hiore radical sections of the community can he altered, is difficult to know. A second way in which costs could ho reduced would be through the reintrod notion —even if only for the duration of tho war—of the 44-hour week, without increased wages. That would bring about some reductions in costs that would he extremely beneficial to the farming community. If a considerable number of our men go overseas it is difficult to see how production is to be maintained, not only in the country, hut also in our factories, and the additional four hours a week would greatly assist the position. The farmer is constantly told that he must increase his efficiency, f suggest that tliorc is no industry in New Zealand which lias increased its efficiency to anything like the same extent as the farming industry over the last twenty years.”