DAIRY BOARD

Wanganui Chronicle, Volume 80, Issue 251, 22 October 1937, Page 12

DAIRY BOARD

ACTIVITIES REVIEWED WANGANUI WARD CONFERENCE GUARANTEED PRICE SCHEME Mattars concerning the activities of the New Zealand Dairy Board were outlined by the chairman (Mr. A. J. Murdoch) and Mr. A. Linton (middle ward representative) at a ward conference in Wanganui last evening at which delegates were present from factories in the Wanganui district. Mr. Linton presided and in addition to Mr. Murdoch, the secretary (Mr. T. C. Brash) and the board’s herdtesting supervisor (Mr. C. M. Hume) were present. The chairman said that during the past twelve months they had seen the guaranteed price scheme in operation. The Minister had estimated a deficiency of £650,000 in the dairy industry account at the Reserve Bank for that period, but owing to the fact that 20,000 tons of butter and 10,000 tons of cheese were in store at the end of the season, this came into the current year’s account, reducing the Minister’s estimate of the deficiency possibly by £150,000 or £200,000. Another feature was that the export market had risen considerably since on the prices being realised then, and taken into consideration by the Min ister. Cheese had realised about 66s a cwt. on the London market, and the guaranteed price had been equivalent to 61s 3d so that, on the basis of over £4 a ton, the cheese account had contributed about £400,000 or £500,000 to the pool. It was expected that, when the accounts for the year were wound up, the Government would honour an undertaking given the board to increase the differential payout on cheese from ILd to 2d per lb butterfat.

The board, Mr. Linton added, had offered to provide £2500 annually for live years towards the cost of research into animal diseases which caused loss to this country, and the Government nad set up a Bureau of Animal Husbandry, but Mr. Linton considered, after discussing the matter with Dr. Hucker, the American expert now in Palmerston North, that a concentrated effort should be made to solve the problem of animal diseases in New Zealand. All sections of the primary industry should contribute, with the assistance of the Government, to the efficient organisation of an Animal Research Bureau as a separate institution. Steps wore now being taken to bring Professor Hammond from Cambridge University to advise the Government on these lines. Continuing, Mr. Linton said it was his opinion that the large increase in the price of cheese crates and butter boxes was due primarily to the higher wages and the introduction of the forty-hour week in the milling industry. He stated that Mr. Murdoch would deal with other aspects of the board's activities. Utilisation of Surplus Dealing with the guaranteed price theme, Mr. Murdoch said that it had -Teen stated that if there was a surplus available in the account last year it would be distributed to the industry, but he took that as meaning it would'be applied to research activities, etc., and not paid out to the factories. However, this year, any loss or surplus would remain in tne dairy industry account. Suggestions that the Hoard had no longer anv cvfltr ■! in the handling of the Dominion’s produce were refuted by Mr. Murcoch, who said the Government was Using that machinery in putting into effect its marketing plans. The wiia'e system, with the forward arrangements had been taken over by the State, and past Dairy Boards should be given credit lor establishing such an efficient organisation. Not requiring the same amount of money as in the past, said Mr. Murdoch, the present board was reducing the levy by half to l-10ud per lb on butter and l-200d per lb on cheese. It had not the same commitments as previously, having last year paid over to the Government £lO,OOO for the milk in schools scheme. This year the board had allocated £lO,OOO fori farm dairy instruction. However, it

had been advocated that the cost of this service should be shared on a 60-40 basis by the Government and the industry, which had offered its support in this direction, but no definite indication was yet available concerning the Government's intentions. Without success, the board had pressed on the Government that the board should be allowed to collect and handle grading fees; but it was considered that the industry was at least entitled to a statement as to how these were disbursed.

Payments would be accruing to the dairy factories about Christmas from the butter box pool. The board had felt that, as an emergency measure, reserves of boxes and crates should be established, in order to ensure continuity of supply, and this was being done at Feilding and Frankton. Because the industry could not take the risk of a breakdown in these requirements, the Minister had given authority tor the importation from Sweden of produce containers numbering up to 750,000. Mounting Costs Continuing, Mr. Murdoch stated that costs in the butter and cheese industry were mounting, and becoming one of its chief troubles, while the price for produce remained fixed. Charges were increasing in every direction, and steps had to be taken to safeguard against the possibility of hold-ups on the waterfront or anywhere else. While Australian producers were securing a reduction, export freight rates from New Zealand were being increased by 2i per cent, this year. People could draw their own conclusions, but these facts suggested that the rise was due to local factors and higher handling charges. An approach had been made to the Minister to grant the board authority to regulate the bobby calf industry, and he had agreed to this, Mr. Murdoch added, but difficulties had arisen in securing the necessary legislation, and no control was being experienced at present in this direction. Il was hoped to secure this authority for next year, utilising existing organisations wherever possible in devising a national system of control, without eliminating reasonable competition, as trade restrictions were irksome. The board felt liiat it could run the business satisfactorily and reduce overhead costs. Arrangements had been made to offer small subsidies to exporting firms for approved advertising in order to stimulate trade in the East, but, owing to high tariffs and other difficulties, the prospects of developing a large trade anywhere but in Great Britain appeared to be poor. Nevertheless, they had to guard against the danger of quantitative restrictions being imposed on exports to Great Britain.

The activities of the herd-testing service were outlined by Mr. Hume. At the conclusion og the addresses, the speakers answered a number of questions. They were accorded a hearty vole of thanks.