GREATER CHEESE PRODUCTION

Southland Times, Issue 24438, 19 May 1941, Page 10

GREATER CHEESE PRODUCTION

VITAL IMPORTANCE TO N.Z. ADDRESS BY DAIRY BOARD CHAIRMAN The necessity for the dairy industry of New Zealand to gear its cheese production to a level never before reached was emphasized by the chairman of the New Zealand Dairy Board (Mr W. E. Hale) in an address which he delivered at the board’s ward conference in Invercargill on Saturday. Mr Hale traversed negotiations between the board and the Government bearing upon the reorganization of the industry necessary to fulfill the cheese contract New Zealand had undertaken with the United Kingdom. Mr Hale pointed out that the great increase in cheese production now being sought was one that was regarded as being of a purely temporary nature. There was a large attendance of dairy factory representatives and the keenest interest was taken in Mr Hale's address. The South Island representative on the board (Mr John Dunlop) presided. Mr Hale indicated that a contract for 160,000 tons of cheese had been made with the United Kingdom for next season, and it was essential for the industry, if it were to play its full part in the war effort, to work at great pressure to produce the cheese. It

meant a tremendous amount of reorganization, but however great the obstacles, they had to be overcome. The board was working in close cooperation with the Dairy Division, the board dealing mainly with questions of principle, and the division with the technical details involved in the manufacture of the additional cheese. Naturally, there were many questions which had to be taken up directly with the Government, and already the broad principles had been agreed upon in discussions the board had had with the Minister of Marketing (the Hon. J. G. Barclay) and the Minister of Finance (the Hon. W. Nash). DETAILED SCHEME It was mutually agreed that this was a national effort, and a detailed scheme under which the Government would, where desired, find the necessary finance for factory alterations and machinery installations required in the change-over to cheese was now being worked out by the Government and would shortly be available. So that the industry would know exactly where it stood for next season, it was desirable for it to have as soon as possible the Government s undertaking that it would pay for the whole of next season’s dairy production. Obviously the industry could not plan its future operations unless it knew what the Government's purchasing policy was to be. The board had been in touch with the Minister of Marketing on that point, and while no complete and clearcut statement had as yet been made, Mr Hale said he believed it was the intention of the Government to live up to the spirit of the Primary Products Marketing Act and pay for all the produce which was manufactured.

As delegates knew, Government ownership of the produce was assumed at the f.o.b. stage, and a very serious situation might arise for the industry in the event of long storage before shipment. The board had suggested that the basis of payment should be 50 per cent, after the produce had been six weeks in store, and the balance after it had been three months in store. The Minister of Marketing had not agreecl to that suggestion, but had replied stating that the Government recognized a special obligation to the dairy industry, and indicating that if conditions were abnormal the Government would discuss the matter with the board. Mr Hale said he thought that it would be much better if the matter could be decided at once, for though he personally believed that the Government fully intended to live up to its promises and to purchase the whole of the dairy produce manufactured next season, a definite announcement would be helpful. GUARANTEED PRICE It would also be helpful if the industry could know as soon as possible what the guaranteed price would be next season. This point had been raised in a recent interview the board had had with Mr Nash. The Minister had agreed that the point was important and had said he hoped the announcement of the price could be made at an earlier date than in previous years. The board believed the industry would go right ahead and do the job because Britain urgently needed the cheese, continued Mr Hale. It felt that the very great increase in cheese production' now being sought was one that must be regarded as being of a purely temporary nature, and for the duration of the present emergency only, and that because of the limited market normally available for cheese in the United Kingdom, there should be a return to the status quo after the war. Agreement with this view had been expressed in the North Island, and he felt certain that South Island producers would feel the same way about it.