HIGHER DAIRY COSTS

Southland Times, Issue 23438, 19 February 1938, Page 19

HIGHER DAIRY COSTS

Materials And Wages

CHAIRMAN OF BOARD SUGGESTS BONUS The annual ward conference of the New Zealand Dairy Board was opened at Wellington on Wednesday. The chairman of the board, Mr A. J. Murdoch, presided, and there were over 50 delegates present. . The conference was opened by the Minister of Marketing, the Hon. W. Nash, and the Minister of Agriculture, the Hon. W. Lee Martin, was also present. “Materials used in the manufacture of dairy produce, such as butter boxes, show a steady advance in price, and the question is undoubtedly giving producers great concern,” said Mr Murdoch, in his address. “The recent award for dairy factory workers is a further indication of advancing costs. In an authoritative statement made recently the secretary of a 500-ton cheese factory indicated that as a result of this award the cost of wages would increase by approximately £1 a ton over the 1936-37 season, and over £2 a ton over the 1935-36 season. REVISION AT END OF SEASON “It is unfortunate, as has been frequently pointed out, that the fixation of the guaranteed price takes place 12 months before actual costs can be ascertained. In view of recent developments, it may be necessary for the industry to ask that at the end of each season the whole question be reconsidered with a view to a bonus being paid by the Government .to cover the increase in costs during the season. “The present season has seen the institution of control of sales of butter on the local market,” Mr Murdoch continued. “To the actual handling of this problem, very little exception can be taken, but the equalizing of the local price with the export guarantee finds the industry steadily opposed. A plan which had been worked out by the board before the change of Government provided that a profit should be made on the local market, for division among all factories on an output basis. We suggest that this should still be made to apply. QUANTITY AND QUALITY “On the production side, the present season so far indicates a slight falling off in quantity, due no doubt largely to the unfavourable producing season, but also to some extent to dairy farming losing in popularity and other classes of farming being taken up. The difficulty in securing labour is, in the opinion of many, likely to lead to a steady decrease in the number of cows being milked.” The butter box equalization scheme instituted by the Government was still being operated by the board, said the speaker. Two outstanding features were the recent disquieting report in regard to reserves of white pine, which Government officers now indicated were much less than anticipated, and the difficulty experienced by the board in having box makers keep up the standard of quality of butter boxes. It had been suggested that cheese crates should be handled under the scheme, and that both the butter box and cheese crate regulations should apply to the whole Dominion. BOARD’S REDUCED POWERS “The board’s position, as is well known, is very different from what it used to be, although it is still the only Dominion organization in the dairy industry,” Mr Murdoch concluded. “Without exceeding the bounds of good taste, it can well be claimed that such a Dominion organization is absolutely necessary. The board’s powers have been largely curtailed, and both its expenditure and activities are controlled by the Minister of Marketing. During the year the board has given more attention to internal problems, particularly at the farm end, such as cattle diseases, herd testing, research, and many other matters which come before it.”