OPTIMISM JUSTIFIED.

New Zealand Herald, Volume LXVIII, Issue 20869, 11 May 1931, Page 5

OPTIMISM JUSTIFIED.

BENEFIT FROM LOW PRICES. AREA OF SALE WIDENED. Interviewed yesterday, the authority on the dairy industry with whom the interview was published on Thursday said ha took strong exception to the statements made by Mi'. Brash,, that his views were calculated to be misleading. There was absolutely no justification for that charge. The interview was admittedly intended to sound an optimistic note, because the facts of the position, when viewed broadly, absolutely justified an optimistic view being taken instead of the pessimism which so many indulged ,in, which could only do harm and add definitely to the difficulties of farmers.

Mr. Brash challenged the figures of prospective butter-fat pay-out for the current season, saying they were more likely to be lid than Is Id. '"i am astounded at this statement," said the authority. "I have before me a statement of the average pay-out for the season to date of a well-run northern factory. That average is and an official estimate of the prospective Final bonus is that it is expected to be 14d or 2d si lb. Mr. Brash would seem to be very much astray in his figures, or perhaps he has overlooked the benefit of the exchange rate, which, according to the estimate of his own chairman in the board's official organ, is worth over a penny a pound to producers. "Mr. Brash further denies my statement that the bulk of our dairy produce has been sold, and in the very next, sentence admits it with a more exact estimate of the proportions sold than I had given. Are not two-thirds and threefifths solid proportions —in fact, major proportions ? "My statement that the position of the New Zealand dairy producers has been immeasurably strengthened by the recent course of the market is also challenged by Mr. Brash. 1 admitted the low values that had been ruling but made the point that those very low values would be found ultimately to be a blessing to the industry, in that they have widened the area of sale. Because of the low values ruling Britain has widened her consumption of butter by approximately 2000 tons of butter a week. This is a result which any experienced marketing man will know could only be achieved otherwise by a huge expenditure in advertising and propaganda. New Zealand has achieved it at one swoop by low values broadening the area of sale. The broadened consumption of butter won at the expense of margarine is a definite ultimate benefit to this country.

"In his references to herd testing, also, Mr. Brash is, I think, unfortunate. He suggests that this valuable work will lose ground this year. I doubt if his view is supported by the head of the herd-testing movement, who believes firmly that the lowness of the. prices will convince farmers mote than ever of the necessity for herd testing. That is only business and Mr. Brash's suggestion is distinctly inadvisable and discouraging to the industry."