THE DAIRYING INDUSTRY.

New Zealand Herald, Volume LXVII, Issue 20669, 15 September 1930, Page 12

THE DAIRYING INDUSTRY.

Sir, —Mr. Sinclair certainly deserves the thanks of everyone connected with dairying for bis timely remarks on rationalisation in the industry, particularly when the cry is being raised to increase production to offset lower prices. Fanners have responded in a wonderful way during tho last decade to this appeal, but I doubt very much if the farming community is any better off. If increased production cost no more, then by all means should we increase that production. I maintain that the country has closely approached what I would call' tho economic bulter-fat limit of production. Rationalisation must now be applied. The more we produce the more we carry in the way of wasteful competition for supply, muddled marketing and hosts of people ready to sell us everything we do not want. Herd averages and bntter-fat returns are absolutely useless unless the economic factors governing them aro known. Some time ago I read that tho Auckland University had appointed _ a special investigator into the economics of dairying. Can he tell the industry nothing*? Can he say whether we would be better to strive "for more production or to equal the Danish prices. The study of farm economics bas cot received the attention it merits, while production has outstripped safe marketing. Tho dairy industry needs rationalisation now, in production, in manufacture, and, abov« all, in that final result, marketing. E. A. Claytok.