POOR PRODUCING SEASON

Southland Times, Issue 23839, 9 June 1939, Page 8

POOR PRODUCING SEASON

Industry Surveyed HEAVY DECREASE IN QUALITY EFFECT OF UNFAVOURABLE WEATHER, (Special to The Times) DUNEDIN, June 8. A wide survey of the dairying industry in the Dominion was given by the Minister of Agriculture (the Hon. W. Lee Martin) at the annual meeting this morning of the South Island Dairy Association. Mr Martin, who was accorded an attentive hearing, said that the poor producing season had been caused by the weather, and that it was evident that the remaining months of the season would continue to show a very heavy percentage decrease in quality because of the effect of these conditions.

To the end of April, said Mr Martin, the production of butter and cheese, as shown by gradings, fell by H-59 per cent., in the case of butter, or 15,500 tons, and 3.3 per cent, in the case of cheese, or 2,600 tons. “Tire value of this fall in production. in terms of sterling, is approximately £1,750,000,” said the Minister. “It is evident that the remaining months of the season will continue to show a very heavy percentage decrease in quantity, as a result of the unfavcurable weather previously. it is interesting to note that the South Island cheese production has not fallen to the same extent as butter has done, ana that Southland and Otago show small increases in both products oyer last year, due no doubt to the good season which prevailed here.” After quoting figures to show what the Government had done to encourage the production of cheese, the Minister said: “I doubt whether the Government should do more than it has done, as it appears doubtful whether it would be wise' to further encourage cheese production at the expense of butter, bearing in mind the relative world markets for each. QUALITY OF PRODUCE “It is pleasing to note that '■ an improvement has been shown in the quality of our produce, more especially in the case of cheese,” he continued “It will be seen that the percentage of butter purchased and receiving the guaranteed price and better was 86,33 per cent, in 1938-39 and 84.91 per cent, in 1937-38. It will be seen that the percentage of cheese purchased and receiving the guaranteed price and better was 84.90 per cent, in 1938-39 and 78.17 per cent, in 1937-38. It is noted, however, that the cheese shipped from the Bluff is below the New Zealand average quality. It has improved since last season, but not so much as the average New Zealand figures have done.” Mr T. F. Paul (Mabel) asked what steps the Government intended to take in stabilizing costs and generally protecting the industry in the future. “Mr Nash undertook to meet the various industrial organizations and place the position before them, which he did,” said the Minister. “The Government has taken every step to keep down costs, and I definitely • do not agree with the suggestion that costs have reached a stage where we are not able to control them. I say that this talk of costs rising to such an extent as to wipe out the benefits of the guaranteed price is all nonsense. It is not true. My own experience and accounts prove that definitely. I say that land is the safest thing you can put your money into in New Zealand today. Farming is the best thing in the country. lam satisfied that nothing else offers greater advantages than farming on sound lines.” The Minister was warmly thanked for his address. FINANCIAL POSITION OF ASSOCIATION SERVICE FOR MEMBERS (Special to The Times) DUNEDIN, June 8. The financial position of the South Island Dairy Association was the subject of brief comment by the chairman (Mr H. H. Meredith) when he moved the adoption of the annual report and balance-sheet. The surplus for the year of £l3O/9/- might appear a small result for the large amount of trading done, he said, but the object of the association was not to make profits but to supply members’ requirements at the lowest possible cost and generally to give them service. “Expenses have gone up by about £6OO compared with the previous year,” he continued. “We had to remain in occupation of our old premises in Invercargill until the alterations to our new property were completed, and this entailed additional costs which will not be recurring. A sum of more than £2OO has been written off for depreciation on the Invercargill property, and the Dunedin building was renovated at a cost of £l6O, these being two new items appearing on the debit side of the profit and loss account. In keeping with the times, the salaries of the staff have also moved upwards. The accumulated reserve or capital fund has now reached £15,477, and when you consider that this is actually a surplus in excess of our total liabilities I am sure you will agree with me that the financial position of the association is exceedingly satisfactory.” The report and balance-sheet were adopted. , . j. The retiring members of the directorate were Mr W. Hamilton (Western District, Southland), Mr R. Pry de (Eastern District, Southland), and Mr A. R. Guild (Temuka). Mr Hamilton and Mr Pryde were eligible for reelection and were re-elected, but Mr Guild was not available again. Mr A. Johnson (Temuka) and Mr S. P. Taylor (Ashburton) were nominated for the vacancy and Mr Johnson was elected. i