BUTTERFAT PRICES

Timaru Herald, Volume CXLIII, Issue 20850, 5 October 1937, Page 4

BUTTERFAT PRICES

OPINIONS OF FARMERS OBTAINED “RED-TAPE REGULATIONS" By the Special Reporter of *’ The Timaru Herald" Convincing evidence that there are dairy farmers in South Canterbury thoroughly dissatisfied with the price the Government has fixed for this season’s butterfat, was readily found when over the week-end, opinions were sought in different districts. The dissatisfaction expressed by some of the farmers interviewed, did not merely ♦top at a criticism of this season’s price, but included references to what they termed “red-tape regulations,” which extended from the innermost departments of farming to the collection of cream from the roadside. A further cause for grievance, in several cases, was that factories are not paying Out the full guaranteed price per pound of butterfat. One farmer said his pay-out according to the last monthly cheque, had been 1/- a lb. instead of the guaranteed price of 131 d. and he Would like to know why dairymen Were expected to wait for that money and the full price Was not paid. The question of rising costs was also mentioned. “At one time I could Obtain those for nothing, or at the most 5/-,” one man said, pointing to a petrol drum which was used to boll pig feed. “Now I have to pay 10/-?’ “When I ask Why a part for the engine is dearer, or anthing else is dearer.” another stated, “I am told it is the 40-hour week.” Supplier from Waitaki Electorate Saying that his identity could be disclosed if required, one farmer in the Waitaki electorate freely gave his views. “Mr Nash's guarantee,” he commented, “sems to be that he is not going to allow dairy farmers to make more than £4/10/- a week.” One great weakness connected with the price fixation scheme was that there was only a minor allowance for contingencies. Cows apparently, were expected to operate like clockwork, and there were evidently no such diseases as vaginitis, mastitis and milk fever. His experience, however, had been otherwise, and one year, his cows had calved three months late because of vaginitis; the extent of that loss Would be apparent When he pointed out that during 10 years he had produced more than 100,0001 b. of butterfat. His record for a month, exceeded a ton. Another matter which concerned him, was that factories were not paying out the full amount of the guaranteed price. The last cheque had been on a basis of 1/a lb„ and he had not even been advised that the full amount Would be paid. Farmers should not be expected to Wait for their money, and the full amount should be paid at once, Dairy factories were being granted a mbnopoly; competition l had been eliminated, the same supplier said. The farmer’s returns could be seriously affected by the way his' cream was graded. When production amounted to thousands of pounds of butterfat, the difference between finest and first grade, represented a considerable sum of money. If the Government made it almost impossible to have cream graded as finest, the amount of the guaranteed pay-out would be reduced accordingly. Then, there was the ever-growing quantity of “red tape.” One of the latest regulations was that cream lorry drivers had to collect cans on the road and not enter a supplier’s propertv; further, to obviate lifting, a stand shelter had to be built on the road, or the driver had to be met. It did not matter that the farmer had to lift the cream cans; nor was his time in driving to the road with the cream evidently counted in the cost of production. The Pay-out Question "Ae point that some factories Were only paying out 1/-, was elaborated upon by a factory manager, When it was referred to him. The price of butterfat was not guaranteed, he said, but the price of butter was. Therefore, the amount received by a supplier for his butterfat, was the guaranteed price for butter less the costs of factory operation. In reality, the price was guaranteed to the factory, and not to the producer. At the beginning of the season, the directors of a factory agreed Upon a price that could be paid to suppliers, so that there would be a sufficient margin for working expenses. In fixing their monthly pay-out, factories were naturally inclined to make a generous allowance for their working costs; any balance would be paid to the producer at the end of the season. Effect Of Regulations With regard to transporting cream to the roadway, one factory supplier said that it was often necessary for the farmer to be otherwise engaged, and then the job fell to Womenfolk. Evidently, however, they were expected to be better able to lift cans than cream lorry drivers; it would be easy for a man to lift a large can on to the stand at the road in case the driver strained himself in the process. Labour on the Farm It had been stated in the House of Representatives, several farmers said, that two men could efficiently attend to the milking of 60 cows. Experience, however, went to show that three people were required to handle such a herd. If those Members of Parliament Intended that the farmer’s wife should also be in the milking shed, then of course, the statement that two men could handle the milking, would be correct. One supplier remarked that to employ a farm hand on a 40-hour

week, he could only be engaged during milking hours. A point brought out clearly during the interviews, was that While farmers were not against paying a reasonable wage to their employe's, sudden compliance with many sets of conditions, had thrown a considerable financial burden on many properties. A leading dairyman in the Orari district said a statement to the effect that there had been only one or two dairy farmers at the meeting in Temuka which protested against the price of butterfat, needed immediate correction. He had attended the meeting, and about 95 per cent, of those who were present, were directly connected With dairy fanning. Dairying in South Canterbury Several times, the remark was made during interviews, that butterfat and cheese represented a very small portion of primary production to South Canterbury; wheat, wool and lamb were matters of much more importance Therefore, it was not surprising to fil’d that where a man milked 10 or 12 cows in a primitive manner, he would occasionally say that it was not possible for him to give an opinion on the guaranteed price. The cows were only a side line, and the cheques were often regarded as pocket money. Some farmers to such a position did say, however, that the present price suited them, but when asked to substantiate the statement with returns showing their farm working, it was found in the majority of cases, that the cows did not enter into the farm finances. The interpretation that could be put on such evidence was therefore, that where a few cows were milked to a primitive manner, where there was no plant to maintain and no hands to pay in connection with milking, butterfat prices were often quite all right, because the cheques merely represented pocket money without bearing any relation to costs. Much of the dairying done to South Canterbury, is conducted as a sideline, it Is where a farmer is making his living from cows that an opinion is worthwhile, and it is worth far more if returns are produced to support his argument. When farmers who made their living from butterfat were interviewed, most of them strongly objected to the evergrowing disparity between rising costs and the fixed price. Some of course, preferred not to comment at the present juncture. Hut a point that did seem to be obviotis was that when farmers who made their living from dairying, favoured the present price, they usually possessed properties With peculiar advantages, employing no labour, and had high-producing herds. It Would appear, therefore, that before the guaranteed price could be regarded aS satisfactory, it would need to satisfy the average dairyman who is making his living entirely from cows, and he is not satisfied.