“Unfair Now If Set Price Kepi Down”

Northern Advocate, 16 August 1940, Page 4

“Unfair Now If Set Price Kepi Down”

f Special to “Northern Advocate “] HAMILTON This Day.

Speaking at the annual meeting of N.Z. Co-op. Dairy Co.. Ltd., today, the chairman of directors (Mr W. Marshall), said that the guaranteed price for the 1939-40 season was the same as that paid for the previous season. Increasing costs of production on the farm were carried by the producers. and it was fortunate that, gener-ally-speaking. the larger volume of produce manufactured prevented an increase in the cost from farm gate to f.o.b. In comparing the payment to suppliers for the past two years, it had to be remembered that the first two months of the 1938-39 season were paid for at 1.23 d per lb. less than the remainder of the period, leaving only 10 months of that year at the higher rate. 1940-41 Price. The price for the 1940-41 season had received the attention of the Dairy Board and Dairy Council and discussions had taken place with the Minister for Marketing, and the facts concerning the price should be available to the industry at an early date. “There can. however, I think, be no objection if I express my own view, which is. that demands at this time must take cognisance of the Life-and-death struggle in which the Empire is engaged, and the effect on the future of the dairy industry in New Zealand of the competition from margarine, and the impoverishment and suffering of those who today purchase our products,’’ said Mr Marshall. No Increase to Britain. “My considered opinion is that our duty to Britain and our responsibility to safeguard as far as possible the future of the industry are two strong reasons why New Zealand ought not to .ask Great Britain to pay a higher price this season for our dairy produce. “These considerations indicate the importance in the national interests of keeping- costs of production in New Zealand as low as possible, and it is disturbing to know that we appear to be in an ascending spiral. “Recent increases in transport costs, and in several Arbitration Court awards, will directly affect the dairy farmer, and the pronouncement of the court on the cost of living bonus will add to production costs. “For instance, the price of timber for packages has already risen 9d to 1 - per 100 feet. Farmers’ Union View. “The 5 per cent will also be .added to the wages of all dairy factory workers. “The matter should receive early attention from representatives of the industry, but I think the position has been .accurately expressed by the president of the Farmers' Union (Mr Mulholland), when he said that the farmers’ attitude in withholding their hands regarding prices is dependent on the rest of the community doing the same. “My personal opinion is that, now that costs have risen so much it would he unfair to the dairy farmer to hold down the New Zealand price.” “Duty Crystal-Clear” I Later in his address, Mr. Marshall said: “Our duty today is crystal-clear; this organisation is doubtless the largest producer of dairy produce in tne Empire. “Great Britain lias had some sources of supply cut oil'; what we can supply may be vital in a crucial hour. “All our weight and effort must be thrown without reservation into the common task.

The individual supplier is the

unit of this business; what we are able to do depends almost entirely cn individual effort, and I am confident we shall play a worthy part in the days that lie ahead. "We are faced with the necessity to put forth our maximum effort now in realisation of the fact that each dairy farm and factory must do everything possible to help feed our kinsmen in Great Britain, who today are bearing the brunt of the defence of all that we hold most precious. Husband Resources. “It is almost impossible to forseo what changes will De brought about by the stupendous upheaval which is taking place, and by the astronomical sums which the nations are spending on war—the iron heel of change is shaking the very ground from under our feet till we wonder what will happen next. “But one thing appears to stand

out clear, and that is that when the war is over we shall have to sell our products in an impoverished market, in which a lower competitive article has already gained a firm footing.

“Lord Balfour of Burleigh has warned us when he said, ‘a world that is being taught by high prices and propaganda to eat margarine instead of butter may take longer to discard the habit than will suit dairy farmers.’ “The prudent course in such circumstances for the dairy farmer is to make sure that adequate maintenance is done on the farm and to husband his resources.”