The Southland Times MONDAY, JUNE 28, 1943. Dairy Farm Costs

Southland Times, Issue 25691, 28 June 1943, Page 4

The Southland Times MONDAY, JUNE 28, 1943. Dairy Farm Costs

AT THE annual conference of the National Dairy Association last week the Minister of Marketing made an announcement of considerable interest to dairy farmers. The Government, he said, was prepared to accept “the general principle that costs in butter and cheese production should, as far as practicable, be taken back to the 1938-39 level at the beginning of next season.” This decision “was based on the assumption by the Government that the dairy industry was willing to accept the war cost allowance of .61d as covering the increased labour award.” When the proposal was discussed by the conference it was agreed that the war cost allowance was not sufficient. A resolution was carried- in which the opinion was expressed that “adequate allowance should be made for the factor of labour reward increase and that all other farm costs and transport charges should as far as possible for the 1943-44 season be taken back to the 1938-39 season level, or an equal allowance made.” Production costs are not always easy to define. Daily farmers know that they are paying higher prices for almost everything needed to keep their land at a normal productive capacity, and at the same time they are receiving a guaranteed price which, apart from two small exceptions, has not varied since 1938-39. But the central cost is obviously the labour of the farmer and his family. When the Hon. W. Nash discarded the standards and prices proposed by the special tribunal of 1938 he laid down standards of his own which called for a butterfat production that farmers insist was well above the average. Moreover, the prices for butter and cheese were reduced below the figures originally proposed. This meant that to obtain adequate returns the dairy farmers had to increase their output. Since then the situation has been made difficult by an all-round increase in the cost of living. While city workers were receiving the protection of successive wage increases, the farmers remained tied to a price which showed scarcely any movement in a five-year period. They have had to meet, with the rest of the community, the higher cost of living; but they have received little relief from extra allowances. If it was difficult in 1938-39 to obtain the output of butterfat which Mr Nash made the basis of price fixation, it has now become practically impossible. The small farmer depends on himself and his family for labour. He is working today under heavy pressure, often with less assistance than he could receive before the war. In many cases the labour has had to be shared by wives and children. The Government is asking for more butter and cheese. It is only right, therefore, that the dairy farmer should be guaranteed a return for his labour more in keeping with the needs of the times. The old injustice, implicit in the standards laid down by the Government, has been aggravated by abnormal conditions. If costs are to be stabilized at the 1938-39 level the process should be made comprehensive. And this cannot be done without taking into consideration the cost of living. The dairy farmers have never ceased to press for a higher guaranteed price. In an election year they should have some chance of receiving it.