GUARANTEED PRICE

Waikato Times, Volume 127, Issue 21193, 16 August 1940, Page 7

GUARANTEED PRICE

“TIME FOR INCREASE” DAIRY FARMERS’ POSITION BURDEN OF EXTRA COSTS

“The price paid for the 1939-40 season was the same as paid for the previous season, increased costs of production on the farm being car-

ried by the producers, and it was fortunate that, generally speaking, the larger volume of produce manufacture prevented an increase in cost from farm gate to f.0.b., said Mr W. Marshall, chairman of directors. In comparing the payment to suppliers for the past two years it must be remembered that the first two months of the 1938-39 season were paid for at 1.23 d per lb less than the remainder of the period, leaving only 10 months of that year at the higher rate. The price which is to be paid for the 1940-41 season has received the attention of the Dairy Board and Dairy Industry Council and discussions have taken place with the Hon. Minister of Marketing. The facts concerning the discussions should be available to the industry at an early date. “Duty To Empire”

“There can, however, I think, be no objection if I express my own view, which is that demands at this time must take cognisance of the life and death struggle in which the Empire is engaged, the effect on the future of the dairy industry in New Zealand of the competition from margarine, and the impoverishment and suffering of those who today purchase our products.

“My considered opinion is that our duty to Britain and our responsibility to safeguard as far as possible the future of the industry are two strong reasons why New Zealand ought not to ask Great Britain to pay a higher price this season for our dairy produce. These considerations indicate the importance in the national interests of keeping costs of production in New Zealand as low as possible and it is disturbing to know that we appear to be in an ascending spiral.

“Recent increases in transport costs, and in several Arbitration Court awards, will directly affect the dairy farmer and the pronouncement of the court on the cost of living bonus will add to production costs,” added Mr Marshall, “for instance the price of timber for packages has already risen 9d to Is per 100 ft. The 5 per cent will also be added to the wages of all dairy factory workers. “Ask For An Increase” “The matter should receive early attention from representatives of the industry but I think the position has been accurately expressed by the , president of the Farmers’ Union, Mr W. W. Mulholland, when he said ‘that the farmers’ attitude in withholding their hands regarding prices is dependent on the rest of the community doing the same.* My personal opinion is that, now that costs have risen so much it would be unfair to the dairy farmer to hold down the New Zealand price and the 1 industry should now ask for an inj crease in the guaranteed price for I the present season.”