PRICE OF MILK.

Waikato Times, Volume 98, Issue 15309, 9 August 1923, Page 2

PRICE OF MILK.

FARMERS SEEK INCREASE. POSITION IN WELLINGTON. MILK COMMITTEE'S REPLY. With reference to the recent statement by the Mayor of Wellington in the press as to an increase of 50 per cent on milk prices being demanded by farmers, Mr J. M. Bertram, president of the Dairy Farmers' Association, has stated that he had brought the paragraph in question under the notice of the Milk Committee of the Council, the members of which had agreed on its incorrectness. He had asked them to correct It, seeing that it was a statement allegedly from the Mayor, and they had promised to do so, but nothing had ever been done by the committee. He had therefore concluded that they preferred to allow the misrepresentation to go unchallenged, so as to weaken the case of the dairy farmers for fair treatment. Not only was that erroneous statement not correct, continued Mr Bertram, but it was allowed to appear again in another newspaper a week or so later, leaving only one conclusion to be drawn.

"Grossly Incorrect."

"I wish to refute the statement as grossly incorrect and misleading," said Mr Bertram. "The public should know the facts. They are these: This winter we are receiving Is 5d per gallon (plus 2Jd for freight and cartage) for our milk—ls 7Jd altogether for the four months from April 16 to August. 15, What we arc asking for next winter's milk is Is 9Jd per gallon, which is an increase of only 10 per cent on this winter's price and is actually 10 per cent less than we received for our milk in the winter of 1922. We are asking for this increase on account of the rigid conditions which arc laid down for the supply of winter m(lk. We have also voluntarily increased the Reductase test from 180 to 250 minutes, giving the city the highest grade milk possible. Any milk under that test counts as second grade. A Tentative Arrangement. "Bearing in mind that it costs 9d per gallon to produce milk payably, this is what the City Council paid dairy farmers for last summer's milk:— Per gallon. First grade, at dept lO.lOd First grade, surplus .' 6.17 d Second grade 5.93 d "And all this time the Council was getting Is 8d from the public. "I say that no farmer can produce milk in the Wellington district, sell It at such prices, and make a profit out of it. It simply can't be done- That is why we are asking for a better price for next summer's milk, as well as next winter's. Our contract for the winter runs out on August 15, but we have made a tentative agreement to carry on at a- certain price until a new contract is arranged.

Board Wanted. "At the present time the Milk Committee wants to set up a price-fixing 1.-fißrd, and has iniiuifted to us thai if we do not accept such board by a certain date it wil' ,'onsider Itself frte to get milk elsew.iere. The nig st'.cx. ■jou see! We havo informed ;be committee that we do not agree to a price-fixing board, but favour an appeal' board. Indeed, we went along to the committee on Thursday, not only prepared to nominate Our members, but a chairman, too, who should be a business man (not a dairy farmer), but no definite conclusions were arrived at. "When the City Council approved the milk scheme we were about to build a dairy factory at the Hutt. Indeed, the foundations were laid down, when we were asked to desist as the city would be able to take all the milk the Valley could produce. Later, when the Council became worried by surpluses, we were asked to put up the factory, and- about the same time the Council acquired the Rahui factory at Ot.iki. Now we are going a h end with our factory, the milk committee is inclined to think that we are doing so to hammer it, but there is nothing in that—it is simply to deal with surplus supplies of milk. The new factory is to be ready to operate next month."

MILK COMMITTEE'S REPLY.

When approached on the subject the chairman of the milk committee (Mr W- H. Bennett) said: "I have read Mr Bertram's statement. As pressmen of the city know, I, as chairman of the Milk. Committee, have resolutely refused to give anything out to the press dealing with our negotiations with the Dairy Farmers' Association, deeming it not wise to make comments or give information whilst negotiations were going on. However, as Mr Bertram has seen fit to rush into print, it leaves mo no option but to state the case on behalf of my committee. Regarding price-fixing and general conditions of supplies: These matters have always given the committee a great deal of trouble and anxiety, because where there are sellers on 'the one hand, and buyers with a monopoly of the market on the other, there naturally arises a situation that requires some outside authority to settle. Hitherto there has been no such authority, and it is for this reason that we are seeking, through an amendment to the Act, to sot up a board, to consist of two representatives of the farmers and two to represent the council.

Finding a Chairman. "These representatives will, if possible, elect their chairman, and if they fail to do so, then it shall be the function of the Minister of Agriculture to make an appointment, such appointment to he either a Judge of the Supreme Court or the Arbitration. Court, or a Stipendiary Magistrate. The farmers will not agree to the board so constituted, so it is imposiblc to get legislation Ibis year. We are now endeavouring to come In an agreement on a board to settle our present difficulties. As the representatives nominated by the farmers are direct parties, to any conclusion arrived at, it will be readily seen that the finding of such a board will virtually be that of the chairman. So far the chairman has not, been found, and there is no method of finding one if the party disagrees. A Wrong Impression.

"So much for the board. As to Mr Bertram's complaint re mis-state-menls to the press, I can only say that they do not come from us, ami we did not'promise lo rectify something that we bad nothing to do with. His Worship' the Mayor cannot be expected lo know everything that goes on in the council's committees, although he has general information given him, and in speaking to a press representative he gave out. -a wrong impression. The increase spoken of by the Mayor as oU per cent is the difference between the average price paid this year in

the other chief cities of the Dominion and the price now demanded by the Dairy Farmers' Association. Some Figures. "As shown by -Mr Bertram, we paid for the summer period of eight months lO.lOd per gallon, and for the four winter months 19.50 d per gallon. The demands for next year divide the year up into three parts instead of two, viz., summer period of 5£ months commencing August 16, at lil.oOd per gallon; autumn period, 24 months, commencing February 1, 'at 14.85 d; winter period, commencing April 14, at 21.50 d. The increases on last year's prices are as follow: 33.6 per cent on summer supply, 47 per cent on the autumn, and 10.2 per cent on the winter period, or an average of 28.36 per cent on the twelve months' supply, whilst information to hand from other centres shows that we paid on an average .25d more per gallon for summer and 4-62 d more for our winter requirements. "The attitude of my committee is that the farmers should have an absolutely fair deal, that they should be encouraged to produce the very best article; but we have a duty to the 80,000 consumers of this city as well, and we cannot see any fairer way than to put matters of price and conditions in the hands of an absolutely independent tribunal who, after hearing all the evidence on both sides, shall come to a wise and just conclusion. At present there is no finality."