WARNING NOTE

Otago Daily Times, Issue 24416, 30 September 1940, Page 9

WARNING NOTE

BUTTER PRICES AFTER WAR REDUCED SPENDING POWER AT HOME (Special to Daily Times) WAIMATE, Sept. 27. A note of warning to dairy farmers was sounded by Mr H. H. Meredith, chairman of directors of the Waimate Co-operative Dairy Company, Ltd., at the annual meeting of shareholders to-day. " We in New Zealand have our part to play in the life and death struggle in which the Empire is engaged," he said. " Britain wants all the cheese and butter we can produce, and it is up to us to send what she requires and more if possible. As long as the war lasts, the sale of our cheese and butter to Britain is assured; but I would like to point out this fact—that after the war the spending power of the British public will be tightened, and the time will come when New Zealand will have to be content with a price much lower than she is receiving probably about lOd or Is per lb. This will result in many dairy farmers going out of the industry unless they see to the breeding of better stock, able to produce more, and so offset the lower price." Mr Meredith, referring to the steadily increasing costs, said there seemed to be no way of checking them under the present method of continually raising wages, which created a vicious circle. To make matters worse," he said, the Minister of Marketing did not increase the guaranteed price for last season, and I feci sure will not do so for this. It is quite evident to me, as 1 am sure it is to you that the Minister has no intention of implementing the policy denned by the Act which he claimed was passed to protect the interests of the dairy farmer, it is unfortunate that more consideration of the welfare of the dairy farmer is not given, and concern is now felt at the decline in cow population and in the number of suppliers to dairy companies who are taking up other occupations which offer them a better standard of living. Dealing with the company's affairs, Mr Meredith said that the year, from a manufacturing point of view, was not a good one. The spring was late, and dry weather set in. continuing until well into next year, with the result that the company s output dropped by approximately 40 tons. After allowing the usual depreciation on plant, machinery, and buildings, there remained a balance of £4758 lis 9d. which the directors proposed should be allocated as follows:—l£d to be paid on all butterfat supplied during the year, which would absorb £3542 10s 2d, and to pay 4 per cent, dividend on paid-up capital, totalling £225 9s. the balance to be carried forward. The report and balance sheet were adopted. ' "•