DAIRY PRODUCE

Timaru Herald, Volume CXLIII, Issue 20679, 18 March 1937, Page 6

DAIRY PRODUCE

NEXT YEAR’S PRICE A STRAW IN THE WIND By Telegraph—Press association WELLINGTON, March 17. Addressing the Dairy Board conference to-day, the Hon. W. Lee Martin said that there had not been 100 per cent co-operation from the industry, a small section not having rendered all the assistance that it might have given. However, the Dairy Board’s assistance and 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 guaranteed price was a generous interpretation of the price that had been paid over the last eight or ten years. The compensatory price said the Minister, which some were advocating was in line with that the Government was proposing. Regarding the estimating of next season’s guaranteed price he believed that the 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 payout difference between butter and cheese would be reviewed in the light of experience this season. Mr C. J. Parlane asked whether Mr Martin seriously believed that butter factories would be paying Id more for butter-fat than last year. Mr Martin replied that efficiently run factories would. A voice: You ought to know better. Mr Martin said the Government believed that the guaranteed price was a generous interpretation of the price that had been paid over a period. There was an additional £500,000 which was Intended to provide for meeting increased costs that might result from the Government's .egislation. It had to be remembered, also, that the price was to be reviewed each year. Factory Costs Referring to factory costs, the Minister quoted a letter written last month in which It was stated that the six months’ costs of a dairy factory were slightly below those of last season. The letter stated that the next six months’ costs might be greater, but it was expected that the final costs would be very little above or below those of last season. The Minister said he was not referring to cheese factories. There had teen an increase in farm costs but not nearly to the extent 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 for six months 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 was accounted for by increased wages. He suggested that the final figures would show an Increased payment of id. “Having regard to the fact that the guaranteed price plan was only inaugurated on August 1 last. I consider that the Government can claim that it has made an honest attempt through the guaranteed price plan and Mortgagors Rehabilitation Act to improve the conditions of dairy farmers and to implement its pre-election promises,” he said. Greater Margin Necessary Referring to the differentiation in butter and cheese prices, the Minister said he was prepared to acknowledge that the information he had at the present time went to show that if the cheese manufacturing portion of the industry were to be retained and extended a greater margin was necessary. It was thought that lid would be a sufficient inducement to retain the suppliers of cheese factories. “There is not a single ulterior motive behind the Government’s policy,,” concluded the Minister. “Those who say that we are not going fast enough must remember that we have been In office only 15 months, and in that time we have accomplished more than any Government has accomplished in that time.”