DAIRY PRODUCE

Poverty Bay Herald, Volume LXVI, Issue 19896, 25 March 1939, Page 13

DAIRY PRODUCE

FIXATION OF PRICES REACTION OF N.Z. BOARD UOM.MITTKI'/S STANDARDS BASTS FOR ADJUSTMENTS (Ter Press Association.) DUNEDIN, this day. The guaranteed price in relation to the tanner and the Dairy Produce Board's reaction to the legisation in that direction, was discussed yesterday by Mr. W. E. Hale, chairman oJ the" Dairy Board, at a ward conference. The dairy farmer, he said, had agreed to the guaranteed price as the accepted principle ot the Government and had mutually agreed upon a standard of costs of production, -which should be altered only under very exceptional circumstances," and the dairy industry was not prepared to accept any variation of standards as recommended by the 1938 advisory committee. Under to-day.'s conditions he believed that any return to the basis of accepting the open market price was unthinkable. He did not agree with the suggestion made by the Minister of .Marketing, the Hon. W. Nash, that the guaranteed price lor next'season should be the same as at present obtaining. Inquiry Last Year The suggestion that an expert committee should go into the question of farm costs simply meant the reopening o: the inquiry which was satisfactorily completed last year. Mr. Hale continued. Under the system by which the whole of the dairy produce was purchased by the State, it was essentia;, Mr. Hale said, to have an intermediary bodv acting as an advocate for the dairy industry. Such an organisation must, of course, accept the broad outline of the Governments policy but, at the same time. it should endeavour to obtain for the producers the best possible terms. The Dairy Board had statutory powers and was a representative organisation of producers and, as an indication of its value to the industry, the cost of the board was recouped many times over by way of increase in the guaranteed price which was largely due to the convincing statistical evidence collected, and analysed by Professor A. H. Tocker, of Christchurch. Not Acceptable Regarding the future of the guaranteed price, Mr. Hale referred to a two-hour interview with Mr. Nash. He had reported to the Minister the attitude of the dairy industry—the unanimous attitude that the suggestion that the guaranteed price for next season would be the same as announced for the present season was not acceptable. It was imperative that the Government should accept the prices and standards recommended by the 19118 advisory committee with adjustments as to the known increases in costs. "If this proposal is acceptable to the Government," said Mr. Hale, "ii will place price fixation on a sound foundation and the question will simply be left for discussion and decision between the industry and the Government as to what adjustments of prices may be necessary, due to increases in costs." URGENT NEED OF RAIN PRODUCTION THREATENED CITY MILK SUPPLY (Per ]?rnss Association.) WELLINGTON, this day. Concern for the adequate supply of milk to the city and to schools was expressed last night by Mr. J. .1. Maher, of Mangaroa, the chairman ol the Wellington Dairy Farmers' Cooperative Association Limited. Mr. Maher said unless rain fell within the next few weeks winter production would be seriously affected. His fellow directors and he were seized of the gravity of the situation and were making every attempt, as principal suppliers to the city and schools, to meet it. The position had been put to farmer suppliers, who were already making sacrifices to maintain production. He appealed to farmers to appreciate the seriousness of tiie .situation and to do their utmost to maintain production, even at the sacrifice of unfinished pigs and other lines for which milk was being used.