DAIRY INDUSTRY

Taranaki Central Press, Volume IV, Issue 386, 18 March 1937, Page 6

DAIRY INDUSTRY

GOVERNMENT’S POLICY CHEESE MARGIN. Cost of Manufacture. Press Association—Copyright. Wellington, Mar. 17. An indication that the information he had showed that, if the cheesemanufacturing part of the dairy industry were to be retained and extended a greater margin of difference in the payment for butter and cheeso was necessary, was given by the Minister of Agriculture, Hon. W. Lee Mari tin, when addressing 'the New Zealand Dairy Board conference to-day. Mr. Martin said there had not been 100 per cent, co-operation from the industry, a small section not having rendered all the assistance it might have given. However, the Dairy Board's assistance and that of the industry had helped the Government materially in implementing its policy. The Government claimed that it had stabilised conditions for the man on the land.

The compensating price, said the Minister, which some were advocating, was in line with what the Government was proposing regarding estimating next season’s guaranteed price. He believod that butter factories' increased costs would be very slight indeed. (Cries of “Oh! Oh!” and laughter.)

The Government recognised the necessity of stabilising the cheese industry and the butter-fat payment difference between butter and cheese would be reviewed in the light of the experience this season. Mr. C. J. I’arlane asked whether Mr Martin seriosly believed that butter factories would pay Id a pound more for butter-fat than last year. Mr. Martin replied that efficiently run factories would. A voice: “You ought to know better." The Minister said the Government believed the guaranteed price was a generous interpretation of the price that had been paid over a period. There was an additional £500,444 which was intended to provide for meeting increased costs that might result from the Government’s legislation. It had to be remembered also that the price was to be reviewed each year.

Referring to factory costs, the Minister quoted a letter written last month in which it was stated that the six monhs’ costs of a dairy factory were slightly below those of last season. The letter stated that the next six months' costs' might he greater; but it was expeced that the Anal costs would be very little above or below those of last season. The Minister said he was .not referring to cheese factories.

There had been an increase in farm costs, but not nearly to the extent that some people were stating. He himself was a dairy farmer and he knew what the increases were. For a period of six months last year he received for butter-fat £779, and folsi xmonths under the guaranteed price he received £950, an increase of £l7l. After making deductions for increased production he was £5O better off.

The bulk of farm costs were accounted for by increased wages, Mr. Martin added. He suggested that the final figures would show an increased payment of Ad. “Having regard to the fact that the guaranteed price plan was inaugurated only on August 1 last,” said Mr Martin, “I consider the Government can claim that it has made an honest attempt through the guaranteed price pla'n and the Mortgagors and Lessees Rehabilitation Act to improve the conditions of dairy farmers and to implement its pre-election promses.” “There is not a single ulterior motive behind the Government’s policy,” concluded the Minister.