DAIRY INDUSTRY

Wanganui Chronicle, Volume 77, Issue 82, 7 April 1934, Page 10

DAIRY INDUSTRY

SPECIFIC PROPOSALS PANIC POLICY DEPLORED MR. GOODFELLOW’S STATEMENT [ Per Press AssoclatloM. ] AUCKLAND, April 6. Specific proposals for remedying the state of trie dairy industry are made by Mr. William Goodfellow in the course of a lengthy statement. He said that the recent panic policy or our political leaders was to be deplored, though m justice to Mr. Forbes it should be said tnat he was obviously never keen on a restriction of the Dominion’s exports. Mr. Coates, on the other hand, had for some time past been obsessed with the need for planning everything and the dairy industry appeared at present to be his particular hobby. Mr. Masters could be relied upon to advocate whatever was best suited to the secondary industries. It was questionable whether either gentleman had ever given the question of dairy export restriction serious thought. Mr. Goodfellow traversed the quota discussions with Britain and the Dairy Conference. He said that on March 22 and 23 the Dairy Board met the Government, and contrary to the board's declared policy—and one could only’ assume under extreme political pressure —finally agreed to a delegation being seat to London headed by a Minister and with power to act. This meant that the Dairy Board had placed the industry in the hands of a member of the Government with power to enter into an agreement to restrict dairy exports. The Dairy Board was requested to meet the Government again oa April 11 to present and discuss the restriction scheme which would form the basis for discussion at the Empire Conference in London. Latest reports, however, were that Britain had again intimated that she did not desire a conference. Dairy farmers of New Zealand would be exceedingly relieved to know that. Discussing likely developments after the expiration of the Ottawa Agreement, Mr. Goodfellow expressed disagreement with the view that Britain would not make a separate trade agreement with New Zealand. It was quite conceivable that the British import tariff would be based on the results of the operation of the Ottawa Agreement. If so, New Zealand would not make a very satisfactory showing. Her small tariff concession had been more than neutralised by the increased exchange rate, with the result that the British manufacturer was now worse off than before Ottawa. New Zealand had shown an almost callous disregard for her only worthwhile customer. There was yet time, but not very much time, to put matters right. Mr. Goodfellow said that no one could tell how much longer the present economic blizzard would last. New Zealand should hope for the best. When European conditions improved, New Zealand would once again have no difficulty in selling dairy produce, provided the quality and costs were competitive. He suggested the following propositions for the Government’s consideration: — (1) A national economy, including 50 per cent, reduction in the size of Parliament. (2) Reduced tariff and rates. (3) Bring the exchange back to par with sterling. (4) Replace th© exchange premium with a temporary subsidy. (5) Encourage dairy farmers to breed pigs, ewes and poultry. (6) Maintain the quality of dairy produce. (7) Reorganise the Dairy Board. (8) Actively push sales in all new markets. (9) Establish three central patting jlants in the United Kingdom. (10) Push and advertise Fern Leaf pat butter throughout Britain. In amplifying these proposals he dwelt upon the need of reorganising the Dairy Board and upon the sale of butter in pats, saying that the board should establish three large plants in London, Manchester, and Glasgow, and gradually increase that trade until the bulk of New Zealand butter was sold in pats. By that means Danish prices could be obtained for finest New Zealand butter. In addition to a marketing campaign in li’Jtsin, the Dairy Board should have representative at Hongkong, Montreal, Panama and one for the Mcdiieiranean. In creclusion, Mr. Goodfellow said that there was in reality no overproduction of dairy produce, but underconsumption of New Zealand. The climate excelled all others for the production of high-grade butter and lamb. By setting our house in order now, we should profit to the full when the world ouJ< ok brightened.