DAIRY INDUSTRY.

Star (Christchurch), Volume LXVI, Issue 20234, 19 February 1934, Page 4

DAIRY INDUSTRY.

Prime Minister Predicts Recovery. RISE IN PRICES. Per Press Association. MATAMATA, February 17. The opinion that in spite of the difficulties through which it was passing the dairy industry would show a recovery shortly was expressed by the Prime Minister (Mr G. W. Forbes), when opening the Matamata Show today. Mr Forbes said that a conference was shortly to be arranged of all sections of the industry, and he would be optimistic and say that as a result of this means would be designed to raise prices. He expressed gratification at the rise in the price of wool, and pointed out that the woolgrowers had passed through a particularly difficult period during the last three years. Inevitably the industry had slipped back, and the present rise was all the more welcome for that reason. We must realise,’’ said Mr Forbes, “ that the budget cf the country is based on the budgets of its citizens. If they cannot make ends meet the Government finds things correspondingly difficult.” The woolgrowers were fortunate in that wool commanded the markets of the world, whereas our dairy produce ha.d only one considerable market— Great Britain—and unfortunately all countries were exporting dairy produce and flooding this market. As a result there was a grave danger of prices falling below the cost of production. The position was occasioning the leaders of the industry a great deal of concern, and, as a result of representations by the Farmers’ Union, he had agreed to hold a conference at which the whole position of the dairy industry would be fully discussed. Mr Forbes and his party will spend Sunday and Monday in the Rotorua district, when the Prime Minister will inspect the Ngahura, Galatea and Hera Flora settlement blocks. Quota Question. Per Press Association. HAMILTON, February 17. Questioned at Matamata to-day regarding the quota and the remarks of Mr W. Grounds, Mr Forbes declined to indicate whether Cabinet would make an early decision regarding either the acceptance of the quota or the granting of concessions under the Ottawa Agreement. “ The whole matter will be discussed at the conference of members of the Government and representatives of the dairy industry shortly,” he said.