THE GUARANTEED PRICE

Northern Advocate, 25 June 1937, Page 4

THE GUARANTEED PRICE

Guaranteed : priees for dairy produce and the balance-sheets’ of dairy companies are prominently before the public just now. The annual conference of the National Dairy/Association, now in session, is paying much attention to - the guaranteed price to be fixed for next year. In view of this, a letter from a correspondent who suggests how farm costs should be assessed is particularly interesting. A comparison between the first year under guaranteed prices and the year preceding cannot be made with a two-foot rule, or any other measure. Nat-

ure herself plays an important part. The season, good or bad, has an effect; rainfall plays a part ; and the amount of sunshine is a determining factor in reference to output and quality. The health of the herds, too, cannot be overlooked, when (drawing comparisons. Labour and the use of materials on the farm come into the question. Legislation lias an important effect upon the cost and efficiency of farm labour. Wages generally, and the cost of manufacturing farm implements and machinery, have their effect upon industry. Free labour on the farm, i.e,, the employment of wives and children in the milk-

ing-sheds, must not be disergarded. In short, almost every conceivable thing, whether controlled by man or not, plays a part. At best, therefore, it is impossible to state accurately yet whether national control of the dairying industry has been an advantage or a disadvantage. Inasmuch, however, as the perpetuation of the industry depends very largely upon labour conditions and general legislation, the prospects are not encouraging. Short hours and dairy farming are not compatible in New Zealand, where large herds are the rule rather than the exception. The farm, therefore, is not enticing to the worker, who expects short hours, high wages and the society of fellow-

workers, because he knows that the workers ( in other employment enjoy these advantages. If it is going to become increasingly difficult to obtain, and pay for, labour on the farm, then the farmer will be faced with one of three alternatives: to work his family very hard, sell a portion of hisj; farm, or go but of dairying and run sheep. This is what will hap-1 pen, because high prices for the | product of a dairy farm to meet j 1 the higher costs of production H cannot be obtained in competition ; with other butter-producing <

countries and with margarine. The Government probably did •not realise, or visualise, the repercussions of high wages and fehort hours when it introduced its legislation. The head has already started to chase the tail in industry. New demands for further increases in wages to meet the increasing cost of living, and the further shortening of hours and extending of holidays are being served on industry, to take effect as from the expiration of existing awards. The dairying industry cannot escape; it must be drawn in to the whirlpool, with the result that whatever price is fixed for produce today will be found insufficient tomorrow.