DAIRY PRICE

New Zealand Herald, Volume LXXVI, Issue 23505, 16 November 1939, Page 12

DAIRY PRICE

FARMERS' PROTEST, EXTRA WAR EXPENSES REPLY BY THE MINISTER A protest against the 1939-40 guaranteed price for dairy produce was sent to the Minister of Marketing, the Hon. W. Nash, by the board of directors of tho Mercury Bay Cooperative Dairy Company, Limited. The board claimed that the recommendation of the Advisory Committee to pay an extra Id per lb. should have been granted to cover the rise in production cqsts and to remunerate the farmer 011 it basis commensurate with the scope of his labours. "Now that war conditions prevail, it is realised that production costs must show substantial increases," the board added. "Costs of purchases made since tho war began havo shown this tendency. In other lines of business extra costs are automatically passed on to tho consumer, and it is considered that provision should also bo made enabling the farmer to enjoy tho usual facilities.

"The farmers of this district are anxious to do their utmost to increase tho output," tho board stated, "but they wish to point out that owing to tho high cost of labour and the steady increase in the cost of materials, it is impossible to attain this end unless provision can be made in the guaranteed price to cover the extra expenses." In reply the Minister stated that before the prices for the season were Jixed a number of consultations with the dairy industry representatives were held and careful consideration was given to the position of the producer. He regretted that it was impossible to increase the prices, which were based on normal conditions of manufacture, and he repeated his earlier statement that should undue costs be incurred the Government realised it would have to protect tho producer.