THE GUARANTEED PRICE FOR DAIRY PRODUCE

Otago Daily Times, Issue 23002, 3 October 1936, Page 19

THE GUARANTEED PRICE FOR DAIRY PRODUCE

TO THE EDITOR Sir,—ln your issue of September 30 you publish a letter written by Mr C. H. Taylor in answer to my letter published bn the 18th inst, This controversy was started by a letter written by Mr Bradfleld against the guaranteed '{irice In this letter he maintained that under the Labour Government the dairy farmer should be able to earn 16s per day, Mr Taylor answered this letter, and in order to show to the general public that the dairy farmers would get a commensurate return, he challenged both Mr Bradfleld and Mr Renton to produce a budget of a 50-cow dairy farm and he would do likewise. In view of this, I felt quite justified in stating that Mr Taylor picked on a 50-cow farm to prove his argument, and in my letter I pointed out that as 50-cow farmers were very scarce in the South Island they could hardly be taken as a basis on which to compute the return of an average South Island dairy farmer. When Mr Taylor can write a sound article based on practical facts in defence of the guaranteed prices, both his friends and opponents will appreciate it when they read it. So far his efforts have been one-sided and theoretical. Thus it is that he is unwilling to depart from a 50-cow farm and accept actual facts. Further, as his budget was so obviously unbalanced, I felt tempted to criticise the costs on his farm. I criticise them still further by saying that his budget might aptly be described as the result of an “excessive admixture of muddled thinking,’’ and challenge him to name one farm in Otago that can - show such a result as he has claimed in his budget. Several local dairy farmers would like to inspect this farm of his, as we are obviously right behind the times. Mr Taylor admits that bulls and a dog are necessary, but overlooks major items which I had pointed out to him, such as power costs, maintenance and depreciation on fences and farm buildings, etc. Mr Taylor has not pointed to any flaws in any part of my letter, but evades the criticism in detail by producing a budget supplied to him by > an “economist.” He justifies his arguments by reference t(V this budget | which also applies to a 50-cow farm. My statement, however, that this is not an average dairy form still holds good. If Mr Taylor is fair-minded, he will face this fact rather than try to evade it. The costs in the budget prepared by the “ economist ” are balanced and based evidently on an average of data procured mainly (I presume) in the North Island. The returns, however are theoretical The butter-fat average per cow is put at 2401 b. About 10 days ago the Daily Times published statistics for New Zealand showing that the actual factory return per cow for the season ended 1936 was 2141 b per cow, and for the previous season 2101 b per cow. I think that readers will concede that if one takes actual average costs one should apply them to average actual returns. This item alone reduces the income from a 50-cow farm by about £75. Further, the return is based on a payment of 13Jd per lb—a price which has yet to be realised. and is not the guaranteed price to dairy farmers. From a dairy factory paying out, say, 12£d to 13d per lb for butter-fat the return to the dairy farmer would be reduced from £25 to £SO still further—another fact which will have to be faced by the dairy farmer. I have two farms —one with a State advances mortgage, and the other with a private mortgage. On both mortgages I pay 5 per cent, interest, not 4 per cent,, as reckoned by the “Economist" —another fact which affects his budget. The wage item is shown at a minimum. Out of sheer necessity the wife and family are pressed into service on many dairy farms in New Zealand, and this will still be necessary on many farms if the dairy farmer is j

to get a reasonable return. If dairy farmers paid for all labour other than their own the average wage item would soar at the expense of their income In arriving at the guaranteed price the ■ present Government had to lake into consideration issues other than the return it showed to dairy farmers. In view of this I have always supported it. Members of the' Owaka branch of the Farmers’ Union will bear me out in this statement. One of Mr Taylor’s chief worries now seems to be that I am unknown, and he challenges me to come right out in the open. This is sufficient to stir up my Scotch blood. Well. I am a common little “ cocky ” struggling along on a bush farm near Owaka, and dependent mainly on dairying for my living. I started here at the bottom of the ladder a little over a year ago. and, although a “green horn” to the bush, I am “ making good." My activities are not confined to a 40-hour week and my wife helps outside. I worked for several years in a butter factory, and then accepted a position with the Dairy Division of the Department of Agriculture. Many breeders cf dairy stock, particularly in' North Otago and North and South Canterbury, will remember that for several years I was connected with the dairy division. Besides being reared on a dairy farm, I have had over eight years’ experience dairy farming on my own account. On top 8f this I spent two years of my life working my way all over New Zealand, with the idea of gaining further experience, and during this time and while I was with the dairy division I visited many of the best farms as well as some of the worst farms in the Dominion, and gained a fair insight into their production and the costs of such. I now challenge Mr Taylor to come equally into the open. Does he depend on butter-fat production for his living. and can he back up his arguents from his own practical experience? I would also ask Mr Taylor ta produce a budget from his “ Economist” which he considers would apply to the average dairy farmer of the South Island. I invite Mr Taylor to forward a copy of his first letter containing his budget and a copy of my letter of the 14th inst., criticising it to Mr Lee Martin, Minister of Agriculture, and Mr Morgan Williams, M.P., asking them to publish a commentary on them in the Otago Daily Times. These two men are the practical experts in the present Government Party, and the latter is my father-in-law. I may also state that fire and flood damage, etc., are not touched by theory, but have to be met by farmers in a practical way. Both my father-in-law and myself have been victims of one or the other within the last year. In conclusion, i would ask Mr Taylor straight out, Does he, from his own practical experience, honestly believe that the average dairy farmer of Otago can earn the amount he claims in his letters, or is he merely arguing that it is possible for a certain class of dairy farmer to earn that amount? —I am, etc., W. M. Clark. Catlins. September 30.

ro THE EDITOR Sir,—l have just read a letter by Mr C. H. Taylor on the subject of the guaranteed price for dairy produce. I notice that he has instructed a farm economist to prepare a budget. I find on looking it over that it is the same old budget, with the same old mis-calcu!ations--e.g., milk takes itself five miles to the dairy factory, etc. I did not require the services of an economist to prepare my budget, as 1 have all the actual practical facts to work on, and as my budget will remain the same as my last one, an income of £72 is shown not £3O, as stated by Mr Taylor. He possibly did not notice that 1 added house rent (£52) to my last statement. Mr Taylor stated in his letter of September 7 that an accountant could cancel out a dairy farmer’s income. At the present time I think that statement is quite correct. But the amazing part is that, for the purpose of his last letter, he employs an accountant to show how a dairy farmer will have an income of £297. 1 am in a fog to know

whether this is a compliment to the accountants or otherwise; most certainly both statements cannot be right. Mr Taylor seems determined to “ sack ’’ one of my men, but I have no intention of doing so, as my policy is the same as that of the Labour Government in endeavouring to get all men into useful occupation. I am 100 per cent, with the Government in its effort to do so. It takes three men to run successfully a 100-acre, 50-cow dairy farm and all the accountants and Taylors will not alter that fact. There are many cases where two men do the milking on a 50-cow farm, the reason why two men have to do the work of three being that the low price set for butter-fat will not pay the extra cost imposed. Where two men do the work they have to work for 60 or 70 hours a week. One man could milk 50 cows if he worked 100 hours a week, but not successfully. Mr Taylor accuses me of calling him a slave-driver. I did not accuse him or anyone else of being a slave-driver. I simply stated that I was not one. I do not know Mr Taylor’s qualifications as a “ boss he mav be all he claims to be. Like Mr Taylor, I do not know Mr W. M. Clark, of Catlins. I notice Mr Taylor has invited him to come out from his corner. I have no doubt that he will come out with another flying tackle, followed up by a drop-kick and body press, and that he will be awarded a fall in the third round. —I am, etc., Alex Renton. Stirling, Oct. 1.