DAIRY PRODUCE MARKETING

Southland Times, Issue 23634, 8 October 1938, Page 15

DAIRY PRODUCE MARKETING

Election Discussion Deprecated ESTIMATE OF LOSS FOR SEASON Regret that the system of marketing New Zealand dairy produce and the payment to the farmers for their produce should have shifted from the economic field to the political arena was expressed by Mr John Fisher, chairman of directors of the Farmers’ Dairy Federation, Ltd., at the annual meeting of shareholders yesterday. An export business which had a value of about £25,000,000 and affected the lives of tens of thousands of people must have some effect on an election, he said.

“There is distinct uneasiness about Government control of the industry,” said Mr Fisher. “Admitting the benefits of controlled handling, the objectionable feature of a farmer’s produce being the butt of political badinage is most disturbing. T‘ 3 part the guaranteed price has played and is playing in the present political campaign demonstrates the danger of the farmers’ produce being the subject of and influencing the attitude of candidates, or even of influencing votes and it is most unpleasant.” The Minister of Marketing (the Hon. W. Nash) had estimated for the coming season a loss on the sales of dairy produce of £1,535,000, from which he had deducted £600,000 profit for the past season; On actual realizations at the present time there was a distinct possibility of the loss being doubled unless the market improved. This could not but be the subject of grave concern for the taxpayer, because the money could not be created and would have to be found somewhere if such a heavy loss on the marketing of dairy produce occurred. • Mr John Dunlop expressed agreement with Mr Fisher’s remarks, and said that one aspect which required emphasizing was that the local price of butter had not yet been raised in accordance with the new export value. The local price should be equal to export parity. There was no indication yet when the price would be adjusted. At present local consumers were buying butter at the same price as last year. This meant that a loss was being met at present in the dairy account, and if the account was balanced later it would be found that the farmer had provided cheap butter for this period.