DAIRY OUTPUT

Te Awamutu Courier, Volume 66, Issue 5596, 24 March 1943, Page 2

DAIRY OUTPUT

EFFECTS OF DECLINE MORRINSVILLE ACTION Recommendations from shareholders to the directors of the Morrinsville Dairy Company resulted in a statement being issued by the company concerning the decline in the average production of dairy cows in the Dominion. Shareholders pointed out that the reduction in output, combined with the current “pegged” price gave rise to general dissatisfaction.

In a statement issued it was mentioned that comments made by Mr A. J. Sinclair, of Te Awamutu, had revealed the fall in output over the past two seasons, and expert opinion indicated that there would be a further fall in production this season of not less than 10 per cent, 'so that the average production for the province was likely to be much less than 2001 b. fat per cow—a direct loss to the dairy farmer of 501 b of fat per cow or £3 15s per cow for the season.

In the days of free and open competition a fall in output in New Zealand was rapidly reflected by a hardening in the price in Tooley Street, and so the dairy farmer was able to obtain some offset against the smaller output. This was not so to-day when the farmers’ price per pound was fixed under certain erroneous standards and adverse factors of fertiliser and labour deficiencies, and higher costs, bore the dairy farmer lower at each point. FURTHER LOSSES FORECAST • The total value of butter-fat production for the 1940-41 season was £28,637,801. Last season’s decrease of 9 per cent meant the loss of over £2,500,000 to the dairy industry, and if the prophecy of this season’s fall of a further 10 per cent proved anywhere near correct, there 1 would be a further loss of over £2,500,000 for the season, a burden of over £5,000,000 that 63,000 dairy farmers were being asked to carry in addition to the incidence of still heavier costs in dairy factories, on farms and in the homes.

The company contended that it was time the industry made its voice felt for the ultimate good of itself, of the business community, and the economy of the Dominion, to say nothing of its inherent desire to do its utmost for the welfare of the Empire by maintaining production to the maximum extent.