DAIRY REPORT

New Zealand Herald, Volume LXXI, Issue 21396, 20 October 1934, Page 14

DAIRY REPORT

WIDESPREAD INTEREST A FAVOURABLE RECEPTION WELCOMED ON BROAD LINES RESERVE ON SOME POINTS The sweeping reforms on the productive, administrative and marketing sides of the dairy industry, which are recommended' by the Dairy Commission, have arrested wide attention. It is claimed that what the commission proposes amounts practically to the socialisation or nationalisation of the whole industry. For the time being, this aspect of the commission's report is the most discussed feature. On broad lines the report is welcomed and summing up the general view a representative of the industry said yesterday:—"The commission has traced the growth of the biggest dairy produce export industry in the world, and has asked, 'What next?' It has proceeded to answer its own question. No problem has been left untreated and its recommendations are sufficiently comprehensive to cover all sections of the industry. Some of its measures sire bold and must be unpalatable to certain interests, but the report carries the impression that the commission has striven to make possible orderly growth and development." .• No Temporary Expedients The report itself reveals the reasoning of the commission, when it dismisses the Micawber-like attitude of waiting for something to turn up. It states: —"In the early stages of what is termed 'the depression,' it was commonly thought that the general fall in prices was of a temporary nature, and that th«i depression period would be short. 11l fact, it is still held by many people that 'something' is just round the corner, and that the unexpected thing will happen, which will once again send prices of primary products to a remunerative level. The general acceptance of this doctrine has resulted in the adoption, of temporary expedients to meet an anticipated temporary crisis. "It isi still urgued that importing Continental countries will soon grow tired of paying high retail prices butter a.nd cheese, and will be forced' by their own consumers to remove quotas and prohibitory duties, and thus open ilieir markets to foreign produce, even though their action will reduce the prices of dairy products at present enjoyed by their own farmers. It is still argued that Governments at present subsidising the production and marketing of dairy products will be forced through economic stress to discontinue this form of assistance, and that their countries will then no longer be serious factors in the British supply position. "Shadowy and Unsubstantial"

"There are still some who look to droughts: to reduce the production of competitive exporting countries, and others again have in mind the possibility" of wars as a means of again establishing an artificial position of supply and demand. Again, hopes are held that the. recovery of trade in Great Britain will be reflected in such an increase in the purchasing power of the workers as will enable the increasing supplies to be cleared at substantially higher prices." - The commission believes that "in the face of the actual position ak it exists, 1 and in the absence of any indication of a change from the general policy of national eocnomic self-sufficiency, the grounds for these vi«ws and hopes are shadowy and unsubstantial." According to views expressed yesterday the proposals of the commission for improving the quality of dairy produce and for rearranging the finances of the producers will probably t find general acceptance and approval. However, it is pointed put that the price of the reorganisation proposed is the sacrifice of the control of the industry to the Government. This, it is claimed, will be opposed in some quarters' of the industry. It is stated that everyone was aware of the "yes-no" attitude of the leaders of the industry in the past, but that attitude was due to outside interference. It is claimed for the industry that, given a proper constitution, it can manage its own affairs. Problems of Marketing Along with representatives of the industry, the commission recognises the need for reform in local marketing and for further investigation of external marketing problems. On these questions there is a tendency to reserve judgment until the terms of legislative action are known. The proposal to form a Council of Production and Trade is a departure from accepted methods of dealing with national problems. The move has been anticipated and the names of Mr. Justice Frazer, chairman of the commission, and Mr. D. Jones, chairman of the Meat Producers' Board, have been mentioned as two possible members. The step taken by the commission in not recommending a subsidy to producers is viewed favourably. Apart from the assistance it might afford to uneconomic development and to possible repercussions overseas, it is stated- that the country is hardly in a position to extend dire.-rt financial help. This would possibly involve additional taxation, as the chimces of exploiting the local butter market for the purpose are remote.

"GREAT ACHIEVEMENT" MAIN POINTS APPROVED MR. A. J. SINCLAIR'S VhV/S [from our own correspondent] HAMILTON, Friday "Many daiirv farmers will read the Commission's report with feelings of disappointment," said Mr. A. J. Sinclair, secretary-manager of the Te Awamutu Co-operative Dairy Company, Limited, to-day, when asked to comment on the Dairy Commission's report. An increased price for butter-fat appeared to be the only hope, and it was obvious that this could be obtained only by means of a subsidy. The commission's arguments against subsidies, were incontrovertible, said Mr. Sinclair, and it was wise to take a long view. The proposal to establish a rural mortgage corporation to take over farm mortgages was a masterly constructive effort to deal with the most difficult problem; facing the dairy farmer to-day. Mr. Sinclair said he was naturally delighted to find that the main points of the stabilisation scheme which he had been advocating for the loc.il butter market were embodied in the commission's recommendations. The proposed new constitution of the Dairy Board would be welcomed by dairy companies in the Waikato, where the unfairness of the tonnage system and the method of election had been a source of contention, said Mr. Sinclair. Possibly the most contentious part of the repart was that dealing with the proposal to establish zones for the collection of cream. The commission was wise to stress the fact that while zoning was suitable in. the case of factories situated in isolated areas, it could not be universally applied. Few dairy companies would support the proposal to .place the creutn contracts under the jurisdiction of the Transport Board. Concluding. Mr.. Sinclair said that generally " the report was a great achievement.