DAIRY CONFERENCE

Te Awamutu Courier, Volume 66, Issue 5600, 2 April 1943, Page 3

DAIRY CONFERENCE

INCREASE IN PRICE REQUEST OF COMPANIES TWENTY-FIVE REPRESENTATIVES MEET

_ .Concerned at the present trends in dairy industry and of the declining butter-fat production in Waikato, the Morrinsville Dairy Company convened a meeting of representatives of South Auckland dairy companies in Morrinsville on Monday afternoon, and twenty-five delegates of dairy companies attended.

UNABLE TO CONTINUE ECONOMICALLY

Considerable discussion eventuated, and the following resolution was carried:—

“ That this meeting of South Auckland dairy companies endorses the resolution previously passed by North Auckland dairy companies in relation to economic stabilisation, but is of opinion that the industry is unable to continue economically on the standards of production, prices, and costs laid down by the Government in 1938, and requests that a special tribunal be set up under the Emergency Stabilisation Regulations to establish a price based upon present-day production costs, so that the dairy farmer may be assured of an adequate return for his labour commensurate with that enjoyed by otfier sections of the community rendering equal service.” In opening the meeting the secretary of the Morrinsville Dairy Com : pany, Mr J. L. Faulkner, said that the conditions of efficiency down by the Government for the farming industry in 1938 were no longer attainable, and that, as a consequence, the labour reward to the dairy farmer was fast disappearing. ERRONEOUS STANDARDS FIXED “ My directors consider that shareholders of every dairy company have a just case for a complete review of the prices they receive for their three main products—-butter, chedse, and pig-meats—and for an application for review of the conditions of the industry under the Stabilisation Regulations. This case would be built upon the erroneous standards so arbitrarily fixed in 1938 and the evidence from all quarters of continued fall in production season by season; from the theoretical of 250 lbs per cow to 216 lbs for last season (209 lbs for the Auckland province); of the decline in value of the total income for the industry—probaby £5,000,000 during this and last season. We suggest to you that at this stage we approach the problem in a constitutional manner through our organisation. Let us first try to marshal our facts by setting up a small committee to which all companies undertake to place as much evidence as possible before; let that committee create a case for presentation to the Dominion Dairy Conference such as cannot be challenged; and let us direct that that case be placed before the Government without fear of its justice being questioned. If we can create such a case, and the Government still persists in asking the industry to carry on with a pre-war price under mid-war costs, then it will be time for some other conferences. We should approach our own Minister and say, ‘ That with all our loyalty and goodwill we have tried to do our best in the national interests, but factors over which we have no control make your standards unattainable, and we must ask for and attain a price to cover our costs of production.’ ”

Considerable discussion eventuated on the conditions laid down by the Government in 1938, and it was estimated by Mr A. G. Alexander that a farmer on the forty-eight-cow-farm, which was the basis of Mr Nash’s calculations, on pre-war wages and costs, would receive a net return of £3 5s 6d a week. It was emphasised that Mr Nash’s figures has been fixed at 3d below that recommended by the committee set up to report on the subject and that the recommendatiofi that the dairy farmer receive £6 a week (in 1939) was below what was considered equitable. “ RAW DEAL ” FROM THE GOVERNMENT Speaking in favour of the proposals. Mr A. J. Sinclair, secretary-man-ager of Te Awamutu Co-operative Dairy Company Limited, said he thought there would be no difficulty in getting the support of the industry. It had long been recognised that the conditions set up arbitrarily in 1938 were out-dated. Indeed, Mr Langstone had said that prominent members of the Government realised that the farmers had received a “ raw deal ” fom the Government in regard to the guaranteed price.

Discussing the question of appointing a committee similar to that appointed in 1938, Mr A. G. Alexander said that he did not think any committee which considered £6 a week as an adequate return for tne farmer rtkrp.x much of farming conditions. He that the dairy industry should have the biggest say in the appointment of a committee. Mr Alexander also drew’ attention to the discrepancy between the figures supplied by the Agricultural Department to the 1938 committee and those of the Government Statistical Attention should also be paid by any committee to the decreasing production of butterfat per cow. After other speakers had expressed their agreement with the proposals the resolution was put to the meeting and passed unanimously. All speakers present expressed their appreciation at the action of the Morrinsville Dairy Company in convening the conference, Mr A. J. Sinclair, of the Te Awamutu Dairy Company, saying that the lead had on many occasions been given by the Morrinsville Dairy Company, and they were all indebted to them for their progressiveness. Messrs Faulkner and Sinclair were appointed to the committee elected to canvass for support for the motion which is to be presented to the Dominion Dairy Conference. —Morrinsville Star.