Manawatu Evening Standard. TUESDAY, AUGUST 27, 1940. DAIRY PRODUCE CONTRACTS

Manawatu Standard, Volume LX, Issue 230, 27 August 1940, Page 6

Manawatu Evening Standard. TUESDAY, AUGUST 27, 1940. DAIRY PRODUCE CONTRACTS

Contracts for tlie sale to tie United Kingdom of tlio Dominion’s exportable surplus of dairy produce have been completed. As announced by the Minister for Marketing the scale of prices remains tlie same as in the past season, but the Home Government has contracted to take a substantial increase in the quantities of both butter and cheese. Naturally, butter is not required to the same extent as tlie other commodity; nevertheless, at a time when margarine can be sold under much more advantageous conditions to the British public, the British Government has shown its willingness to increase the quantity of butter it will take from Eew Zealand from 115,000 tons to 120,000. Because of its great value as a wartime food cheese, which is a highly nutritious and a cheap commodity, is required in much larger quantities and last year’s figure of 84,000 tons has been replaced by 107,000. As the Minister points out tlie present agreement reflects the changed situation in Europe, where Germany’s invasion of Norway, Denmark, and Holland has deprived Britain of dairy produce from these countries, while closing - commerce with Sweden and the Baltic States. A large quantity is required to bridge the gap in Britain’s customary supplies, and as a leading Empire producer of these two commodities New Zealand has been called upon to do her part. But while these figures have beeil incorporated in the contracts the British Government, acting with its customary generosity, has expressed its willingness to take as nearly as possible the exportable surplus, and to continue the general arrangements for the period of the war and for a certain time thereafter.

Very wisely the Government did not seek an increase in prices. Australia, with whom discussions took place, showed the same desire. With Britain fighting for her very freedom and the maintenance of her vast Empire, this was not the time to act in any parsimonious spirit, and all through the country those most vitally concerned the dairyfarmers —will approve of this action. The opportunity is now presented to the Dominion to fulfill the terms of the contract. With regard to cheese every effort must be made to give Britain what she wants. This means the transference of supplies from butter, to cheese factories, and though the Minister says that many farmers have already responded to his appeal regulations compelling this change-over have been invoked. A change, however, is accompanied by problems, particularly the capital cost of providing the extra cans and material required on the farm, and the loss of pig profits where skimmed milk is al-

ways available from home separation. The Government must give heed to these points so that in this great war effortmone shall be penalised by inequality of sacrifice. Bound up also with the industry’s activity is the question of the guaranteed 1 price, which has remained the same since 1938. Since then costs have steadily risen against the dairy-farmer, and lately the Arbitration Court has added to this problem with its five per cent, increase in award wages. In asking that the guaranteed price should be raised to meet these burdens the industry is not adopting- any avaricious manner. In fact it acted most generously in intimating to the Minister in June that, notwithstanding increased costs, as a war sacrifice it desired if possible to avoid asking for a higher fixed price. The Minister, however, did not answer that letter and it is now compelled to seek an increase.