Comment on New Dairy Produce Price Scale

Wanganui Chronicle, 2 October 1947, Page 5

Comment on New Dairy Produce Price Scale

ENABLES HIGHER PAY TO FARM WORKERS

Farmers Warned Not to

Be Too Optimistic

<P.A.) Wellington, Oct, 1. "One of the most satisfactory features about the increased price to dairy farmer s wa ’ ; the tangible recognition of th e fact that workers on dairy farms were entitled to special payments for work done at weekends and on public holidays similar to those enjoyed by workers in other industries."

This statement was made by Mr. A. J. Sinclair, secretary-manager of the' Te Awamutu Dairy Company, and member of the Dairy Industry Council, in an interview. Mr. Sinclair said that with reasonably satisfactory adjustment on the question of prices, the dairy farmer was now free to concentrate his whole efforts in increased production for the United Kingdom. The new season had opened up well, and with favourable climatic conditions there was a good prospect of a substantial increase in exports of butter and cheese. Mr. Sinclair added that in the Interests of the people of Great Britain an appeal for maximum production could now be made confidently to the dairy farmers of New Zealand. Mr. Sinclair said the increased price to dairy farmers had been carefully assessed by the Dairy Products Marketing Commission. "It represents," he said, "16s 6d a week as from November 1, 1946. In addition, there is a further increase in wages of 5s a week as from August 1, 1947, so that dairy farm wages have gone up from £5 10 s 9d to £6 Ils 6d. Before making adjustments with their employees, however, dairy farmers may consider it desirable to await the gazetting of regulations, especially as a decision ha s still to be made on the industry’s request that the existing scalp of £1 a week for board and lodging should be reviewed. Where dairy farmers have already been paying in excess of £5 10 s a week they will be entitled to take this into consideration in making adjustments with their employees. “The statement by the Commission doe s not specifically mention the total increase of 4.232 d per lb butterfat. In the guaranteed price formula the basic payment per lb of butterfat of an average efficient butter factory is set out for 1946-47 at 21.675 d, and this now becomes 25.907 d. The increases are made up as follows: Retrospective payment of 16s 6d weekly as from November 1, 1946, 1.716 d; increased labour reward of 5s a week as from August 1, 1947, ,52d; additional farm costs allowance, covering the cost of removal of subsidies on fertilisers, etc.. 1.996(1—t0ta1, 4.232 d. Included in the new prices to be paid to dairy companies this season there are allowances for increased factory costs of ,442 d per lb of butterfat for butter and ,835 d per lb of butterfat for cheese. CHANGE IN APPROACH "After assisting in the negotiations between the industry and the Commission, I should like to emphasise the marked change this season in the whole approach to the somewhat contentious subject of increased costs. When we appeared before the Commission there was no lack of questioning by members, but it would have been impossible for an outsider to tell who were the Government and the industry representatives respectively. “Dairy farmers are warned not to be too optimistic about the increased price for 1947-48. When they receive their fertiliser accounts, for instance, they will realise just why a considerable proportion of this increase has been necessary, but, on the other hand, few dairy farmers will have any legitimate excuse for curtailing their fertiliser orders. "Retrospective payment will be drawn against the industry's Stabilisation Account, but this should still show a credit balance not far short of £7,000,000. UNITED KINGDOM PRICES “So far as the new prices for the current season are concerned, there may be certain factors which make it undesdrable to press for finality in negotiations with the United Kingdom at this stage, but dairy farmers can reasonably anticipate that the price to be paid by the United Kingdom will cover payments made to them for butterfat and may possibly leave some balance to be added to the Stabilisation Account."