The Daily News THURSDAY, JANUARY 15, 1931. DAIRY INDUSTRY INQUIRY.

Taranaki Daily News, 15 January 1931, Page 6

The Daily News THURSDAY, JANUARY 15, 1931. DAIRY INDUSTRY INQUIRY.

The committee set up to investigate the economic position of dairy farmei’s caused by low values of their products has been commendably prompt in making its report.' Seeing that the most important question, that of affording relief to farmers who must otherwise fail to meet their obligations, has been postponed, the report can only be regarded as an interim review of a very troublesome position. It recommends that- immediate assistance be given to ensure that top-dress-ing of pastures shall be maintained and that efforts be made to increase herd improvement and the yield by herd testing. The committee urges also that overlapping in collection of cream and milk by co-operative companies working in the same districts be investigated by the factories concerned, and that the question of amalgamation of factories in certain districts be also considered as a means of reducing working costs. In the summary of the report issued by the Government it is stated that better utilisation of by-products and cheaper stock foods were reported upon, but no indication is given as to whether the committee touched upon the high price of wheat and wheat products due to the high protection afforded the wheatgrowers in the Dominion. Naturally the committee also discussed the effect upon the mercantile and general community of the depression in the dairy industry, but its conclusions in this regard have not yet been made public. So far as its recommendations are known there is nothing to cavil at in any one of them. There is nothing startling or even novel in the findings relating to the value of topdressing and herd testing. Recommendations in favour of these prime factors in keeping up and increasing production, and thereby reducing its cost too, were bound to follow any inquiry by those who know with any intimacy the workings of the industry. So with amalgamation of effort in the collection of milk and cream, and even in actual manufacture. The absurdity of two staffs and two plants being employed where one would be ample has been discussed by dairy organisations for the past thirty years, with very little progress towards its elimination. The committee still leaves this to voluntary effort among dairy companies and it remains to be seen if the stern logic of hard times and low values will have a greater effect than all the arguments in favour of amalgamation have hitherto succeeded in bringing about. If suppliers realise that they must, in the long run, pay for the luxury of unnecessary competition they may strengthen the hands of directorates which would be glad to see it eliminated. The one matter upon which the industry was chiefly looking for guidance from the committee was that of relief for the farmer who cannot pay his way with values as low as they are to-day. Naturally it is a subject that must be handled with prudence and discretion, and the committee cannot be blamed for refraining from making recommendations in this regard until fuller information is available. It suggests that this might be obtained through the dairy companies, which are able to decide as effectively as any agency whether cases of hardship are remediable, whether they are due to the individual, and whether assistance would be of real benefit to the industry. There is little doubt but that the companies will be willing to assist. As a matter of fact they have often rendered assistance to suppliers needing it, and with excel-

lent results for both the farmers and the factories they were supplying. But the problem is so extensive that ordinary methods of assistance will need strengthening. What is more, relief must be prompt if it is to save the situation in many cases, and it is to be hoped the inquiries to be set on foot will be completed very soon. It is satisfactory to note that the Government senses the need of. calling the committee together again when the additional information is available, for until it has made recommendations in regard to the granting of relief it cannot be said .to have fulfilled its most important function. There is no reason why it should not be. enabled to do so within the next few weeks, assuming, of course, that the Ministry is sincere in its expressions of willingness to assist the Dominion’s most important industry.