CHEESE PRICES

Waikato Times, Volume 124, Issue 20785, 21 April 1939, Page 11

CHEESE PRICES

DIFFERENTIAL INADEQUATE DISCUSSION AT CONFERENCE EXPRESSION OF DISSATISFACTION (Special to Times, WELLINGTON, Thursday A lively discussion regarding the pay-out for cheese compared with butter took place at the annual conference of the New Zealand Dairy Board to-day. Several remits were grouped in one which asked the Government to make up the difference between butter and cheese for the 1937-38 season to 2d per lb. butterfat as promised. The remit w ? as carried by 25 votes to 22. Supporting the remit, Mr S. A. Ferguson said the industry was not satisfied with the cheese position. They had been told repeatedly the cheese industry should receive at least 2d per lb. above butter. The letter they had received from the Minister of Marketing, the Hon. \V. Nash, did not quite satisfy them. The Minister hah stated tl*e cheese industry had not been able to maintain the yield required to get the differential, but he admitted the cheese industry' had maintained the yield on which the price had been worked out. The price was fixed on 2.45 and the yield was 2.459. At the same time they had not been able to get 2d per Lb. differential over butter.

Twopence at Least “That is no fault of the industry, but the fault of the working out of the price formula,” said Mr Ferguson. “The butter people have received more than the guaranteed price formula provided and the cheese people have received just what the formula provides, but they have not received 2d. It is maintained that, unless 2d can be obtained, it is not worth while the trouble and expense of supplying cheese.” Mr J. Boyce said New Zealand provided about 70 per cent of the world’s cheese and the industry was worth looking after. Last year he knew of three factories which had closed down and this year one. If the differential , was not to be paid, there would be a , drift of cheese suppliers to butter. Mr Nash should honour his promise, i Mr F. W. Seifert said that if the 1 scheme were working out as Mr Nash ; had suggested it would be possible to get 2d. He did not think the cheese people should be paid 2d irrespective of anything else. If they were to get 2d per lb. more than the butter companies under any conditions they would get 2d whether the factories were economic or not. He would not oppose the remit, but he thought It was possible that, if the cheese people got together, some system could be evolved under which they could get the amount they wanted. Change-over to Butter Mr W. N. Perry said the butter companies had exceeded the formula, especially as regards the over-run. There was no room in the butter industry for all the cheese people. If they changed over there would be 40,000 or 50,000 tons more butter going overseas and that would detri- ■ mentally affect the market. Mr C. J. Parlane said the tendency In the Waikato had been to leave butter and go to cheese. Indications were that five more cheese factories would be operating there. Mr W. Harbutt-said lie knew of a dual factory that was 3 per cent up ; In butter production and 20 per cent down on cheese. The secretary, Mr T. C. Brash, pointed out that Mr Nash had said that for eight months of the season ■ the decrease in butter was 9.9 per cent and the decrease in cheese production 1.78 per cent. Mr R. O’Connor said many cheese factories did not justify their existence because they were too small. It would be in the best interests of the Dominion to close them down. Mr R. J. Glasgow asked If the Gov- ■ ernment acceded to the conference’s request would the payment be made from the dairy industry account? The Chairman. Mr W. E. Hale: I , don’t think there is any doubt about it.