Farmers’ Costs Higher

Northern Advocate, 28 January 1939, Page 12

Farmers’ Costs Higher

-WAIKATO VISITOR

This season the farmers’ costs will be higher than anticipated, said Mr R. A. Candy, now visiting Kaitaia. He was one of the chief witnesses on behalf of the Dairy Board before the Price Fixation Committee. The rise in costs he believed to be due to changed conditions 'and the season being generally against normal production.

Lower Production Per Cow

The Hon. Mr Nash, in announcing the guaranteed price, stated that an efficient cow should produce. 2501 b of fat and all costs Were assessed on that assumed production, Mr Candy said. The capitalisation was fixed at £75 per cow again on the production of 2501 b fat per cow. Price Fixation Discussed In an undeveloped district such as the North, the production per cow would be much lower than in the more settled districts. The average effective production per cow in the North was a liitle over 2001 b fat. * On this basis farm land should stand capitalised at £6O, instead of £75. This also meant that on this basis farm maintenance costs would be 20 per cent, higher than the figure allowed by the Minister in the fixation of this year’s price. This year’s net return to the average producer must be considerably lower than which . was really intended. “The general feeling in the Waikato,” Mr Candy concluded, “is one of extreme disappointment that the recommendations of the Price Fixing Advisory Committee were not given effect to over this season’s price.