LESS PROFITABLE

Waikato Times, Volume 122, Issue 20523, 13 June 1938, Page 9

LESS PROFITABLE

OHEESE MANUFACTURE THREAT OF RISING COSTS The differential price margin between butter and cheese Is discussed In a report of the National Dairy Federation to be presented at. the annual conference of the Federation at New Plymouth on June 22. “ In response to the strong representations made by last conference, the Government agreed to increase the differential for the present season to 2d per lb. with the object of checking the drift from cheese to butter,” stated the report. “ This decision is reflected in the basis of prices fixed for this season, and while these place cheese interests in a relatively better position than in the previous year, we regret we again have to express some doubts as to whether the theoretical figures will be borne out by actual results. “ It appears to. us that, the Department has not taken sufficient cognisance of the fact that increasing costs are affect ing cheese manufacture to a greater degree than butter, and we fail to see how the difference wiil ho more than 1 Ad or, at the outside, 1 Id. Information Wanted “ In connection with the remit passed by lasi conference that the report of the Price Investigation Committee. set up by the Government, should be made available to the industry, the Minister of Marketing informed your executive most definitely that he was not prepared to accede lo this request. The refusal to release the recommendations of the committee has created dissatisfaction and mistrust. and has undoubtedly strengthened the demand that the price should he fixed by a tribunal on which the industry has adequate representation. “ The Government has apparently realised that if the guaranteed price policy is to secure permanency and give reasonable satisfaction to the producer, the latter must be given a voice in determining the value of the product of his labour. The proposals adopted by the Dominion Conference in March were eminently fair and reasonable. and if was difficult, to believe that a Government Which believes in the principle of the Arbitration Court in industrial matters, could refuse to give favourable consideration to the suggested procedure. It is pleasing

therefore, to have the definite assurance of the Prime Minister that the Government is quite prepared to meet the desires of the industry, and have the price determined by the tribunal suggested. “ A good deal has been and could be said about the industry’s viewpoint of the operation of the guaranteed price;* but we think that as delegates to the conference will no doubt be voicing their opinions freely on this Issue, there is little need to deal with it at length here. Rising costs have offiet some of the advantages, and with the latest announcement of the intention of te Minister of Marketing to pay this year's surplus to ‘the Industry, It is clear that the Government's original Idea with regard to equalised pay-outs season by season through the guaranteed price, has gone by the board. The Industry’s complaints lie principally In two directions increasing regimentation and Government control, and the continual rise in costs.”