Higher Guaranteed Price Sought

Manawatu Times, Volume 62, Issue 65, 18 March 1937, Page 8

Higher Guaranteed Price Sought

EFFECT OF RISING COSTS ON DAIRY INDUSTRY. Per Press Association. WELLINGTON, Last Night. A request that the guaranteed price for the current year be reviewed at the end of tho season, with a view to making direct retrospective payments to cover the increased costs of production, was contained in a remit passed by the Dominion Dairy Conference today. Another remit urged that steps be taken to impress upon the Government the necessity for taking full cognisance of increased and increasing costs when tiling the price for next season. Moving this, Mr. A. J. Sinclair (Te Awamuiu) said that from his investigations, the increase in the cost to the factory was going to work out at from ohe-quarter to one-third of a penny per pqpnd of butterfat. When it came to costs on the farm, it was too early to make any statement until such information as had been obtained had been tabulated, but he should say from his own observations that the increase on farm might be set down at one penny per pound of butteriat. Mr. A. Hayward (New Zealand Cooperative Dairy Company) said that, when Mr. Sinclair said it would take one penny per pound of butterfat to cover the increases on the farm, he was well out. The wages increases alone over the last year were going to take over three-farthings per pound of butterfat. He was not going into factory costs, but the conference should impress on the authorities that a higher price was necessary not to cover the increases this year or next year, but the increases in the future. The remit was carried. Tho following remits were formally endorsed and carried without discussion:— “In the absence of information as to the Government's method of marketing and distribution of dairy produce, and to ensure that dairy companies retain that goodwill for their respective brands which has been built up over n period of,years by consistent good quality, the conferences urges that the companies ' present brands be used in conjunction with the Dominion brand.” (National Dairy Conference). “That it be a recommendation from the conference that dairy companies confer with others in their respective districts with the object of determining a uniform monthly advance payment of which will provide suppliers with a satisfactory supplementary payment for the winter months.” (National Dairy Conference). “That the meeting would urge the Minister of Marketing to pay a premium on salted butter packed in tinfoil and parchment at tho same rate as they are now paying for the use of this class of lining for unsalted butter.” (Whakatane Ward Conference.) Further discussion on remits dealing with the guaranteed price will take place to-morrow.