DAIRY PRICE

Otago Daily Times, Issue 23591, 30 August 1938, Page 9

DAIRY PRICE

THE EXPECTED INCREASE GENERAL SATISFACTION COUNTER TO ADDED COSTS (Special to Daily Times) AUCKLAND. Aug. 29. Estimated to represent an additional distribution of between £2,000,000 and £3.000,000. the expectation that the unanimous recommendation of the Guaranteed Price Committee will be an increase of 2d per lb in the payment for butter exported this season is applauded by executives in the dairying industry While loath to comment until the committee’s report is released by the Ministei of Marketing (Mr W. Nash), authorities expressed the opinion that an advance of 2d on last season’s price would be a substantial counter to the added costs faced by the industry. The actual announcement of the committee’s recommendations is keenly awaited by the industry It is generally asserted that this is the first occasion on which comprehensive evidence on the precise nature of the increased costs has been presented, and the manner in which the problem had been approached by the committee was commended by several authorities. The Committee’s Work Commenting upon the predicted recommendation of an increase of 2d in the payment for butter, one man said the committee must have performed excellent work in interpreting the facts and figures that had been advanced. Until the details of the recommendations are known Waikato dairy executives find it difficult to make any comparisons, but it was generally stated that an increase of 2d in the payment would give the farmers more satisfaction than they had obtained from past prices. It is understood that when the new payment is officially announced the question will be fully discussed by the South Auckland Dairy Association. “An increase of 2d would, I presume, bring the price up to about Is 3£d per lb, and as this would enable most factories to pay out approximately Is 5d for butter-fat, it would be regarded as satisfactory by the majority of farmers,” one man said. “It should serve to counter-balance any rise in costs which were so thoroughly analysed for the committee’s benefit.” The Labour Problem In another quarter the opinion was expressed that the whole question was bound up in the labour problem, and it would take time to appreciate the implications. If 4000 lb of butter-fat was adopted as the labour unit as compared with the present 60001 b basis, it would mean that the farmer would be obliged to share a considerable proportion of the price increase of 2d with his labour. It was added that many factors prevented an accurate estimate of the amount involved in an advance of 2d, Assuming, however, that last year’s production was maintained and that there was a proportionate increase in the cheese price, the farmers would doubtless obtain an extra £2,000,000 or £3,000,000 under these conditions. THE MINISTER RETICENT REPORT NEITHER DENIED NOR CONFIRMED (Per United Press Association) WELLINGTON. Aug. 29. Without denying or confirming a report that there was to be an increase of 2d a lb in the guaranteed price for dairy produce for the current season, the Minister of Marketing (Mr W. Nash) stated to-day that he could not imagine how anyone could assume that this would be the case, as no one was in possession of the committee’s recommendations except himself, and he was still engaged in perusing the evidence. Mr Nash said the matter had not yet been considered by the Cabinet, but probably it would be discussed this week.