DAIRYING PROBLEMS

Bay of Plenty Beacon, Volume 2, Issue 148, 17 April 1940, Page 5

DAIRYING PROBLEMS

[ MR W. E. HALE'S ADDRESS WARD CONFERENCE OF DAIRY BOARD MR A. J. MURDOCH'S OBSERVATIONS There was an attendance of representatives of all Dairy Companies >n the Bay of Plenty ; at the annual Ward Conference of the Dairy Board held in thei County Chambers yesterday. Mr -A. J. Murdoch reviewed the activities of the Board and aspects of the dairying industry and Mr W. E. Hale, Chairman of the Board, delivered a comprehensive address. Mr R. A. Candy spoke on the work of the* Herd department of the Board. All speakers received an •attentive hearing and were ap-' plauded at the conclusion of • their addresses. There had been many points raised by various companies in connection with the activities of the Dairy Board, said Mr Murdoch. It had been said that the Board should not have increased the levy but the increase was necessary to provide for Herd | Farmers and Radio. ""The next point was that we endeavoured to arrange for a member of the Conference to be allowed to speak over the air and present the «ase for the producers," continued Mr Murdoch. "Our request was modnest —all Ave wanted .was half an hour, once a year. The essence of the Minister's reply was that we would anot be allowed to present our case."

The Board had voted £700 this year to research, and this .was an "increase of £500 over last year, the "increase bfeing due to rising costs .1 Mr Murdoch said that he and Mr had received -a good deal of publicity from the ; newspaper "Standard," which accused them of stating that the dairying industry, far from progressing, was retrogressing. The actual position in regard to the progress of the "industry, was that for eight months of the present season butter output was up by 1.8 per cent over last year .and cheese had shown an increase 6.9. Taken overall* the increase •amounted to something less than 3 -per cent. The increase had been due to favourable conditions in . some rareas. The fact of an increase in •some areas had been pushed forward l>y the "Standard," said Mr Murdoch, but the position had to be viewed as a whole and there were districts where a drop in production had .been recorded. Accusation Against Board-. 'Continuing, Mr Murdoch stated 'that the Board had been accused of •setting itself against subsidies. The IBoard had approached the Minister iresponsible and asked for a price to 'the farmer to cover actual production costs. Subsidies were offered on •certain lines but it had been considered that the price asked for -would be more satisfactory. "A sub-» sidy was offered on 'super'," said Mr Murdoch, "but we maintained that "if it applied to 'super' therp should 31ie subsidies on other fertilisers."

"Mr Nash said we Avere stirring 'them up," Mr Murdoch observed, and added, '"That's what we intend to do." The speaker said further that the Board claimed that the 1938 "Committee's finding on the guaranteel price question should be looked upon as an Arbitration Court award "and not varied. It had been varied and the Minister had nothing behind him when he had decided the Mr Murdoch said that last year the Board had had a conference Avith the Minister, avlio had suggested that the guaranteed price existing last year be applied this year and he "would make an effort to stabilise industrial costs. "You knoAv how successful he has been," said Mr Murdoch. Ultimate Load on Producer"Look at the Avatersiders., Recently they had a strike to put pressure -on the Government and the result -was- that they noAV receive an extra '5d an hour, known as 'bending time.' That refers to Avork Avhen cargoes are five feet or more above deck level. Then on the West Coast Ave had the example of men being asked to work until 5 o'clock to complete a ship's loading so that she could take her place in the convoy. For that the Avorkers received 9/4 d per hour. Then there Avas the Longburn strike. "All these are mounting costs which ultimately are loaded on to

the producer. Presently we will have to meet the Minister again and show him how the costs are increasing. Wo must have a better price." Mr Murdoch dealt for some time with the problem of margarine consumption in Great Britain and its effect on the New Zealand butter market. He then referred to the deficit shown in the guaranteed price account. "If the Minister gives us an increased price," he said, "there will be a bigger deficit. It is his job to bring down the cost of production." •Address by Mr Hale. In his address Mr W. E. Hale, Chairman of the Dairy Board, said that the Avar had entirely altered the whole outlook of the dairy industry and had added considerably | to many pressing problems. Regarding the guaranteed price, Mr Hale said that the Board had endeavoured to impress upon the Minister of Finance the necessity for an increase. The Minister had not agreed. It might be said by some | people that the price at present paid was adequate. The increase had been brought about by the forces of na!turc and greater effort on the part I'of the dairy farmers. Mr Hale dealt with the farm labour problem and the added scarcity of suitable men owing to their enlistment for overseas service. The Government had endeavoured to improve the position in this regard but its efforts were only partly effective. "If we are to have increased production," said Mr Hale, "this labour question will have to be tackled seriously by the Government, which is the only authority able to deal with the matter. Some form of subsidy appears inevitable under present conditions."

Future Outlook. Discussing the future outlook for the industry, Mr Hale said he thought that even the Government must be disturbed at the decreases in production which have taken place. Assistance to the industry to improve the position could come in three ways:—■ 1. Through an increase in the guaranteed price.. 2. Through subsidies on fertilisers, wages, etc. 3. Through a reduction in costs. "You know that the costs whicli are worrying us are the increases in New Zealand costs,'" said Mr Hale. "But in any case, under the Act, we shouldn't have to be worrying about these at all* We are supposed to be protected in our price against these costs . increases, but in fact we are not because of the alterations made to the price recommendations by the Minister himself." The contention that a reduction in costs could be obtained if everyone in New Zealand applied himself to his work with the enthusiasm of the dairy farmer was advanced by Mr Hale and a second method of obtaining a reduction -would be the reintroduction of the 44 hour week without increased wages. "The farmer is constantly told that he must increase his efficiency," said Mr Hale. "I suggest that there isN no industry in New Zealand which has increased its efficiency to anything like the same extent as the farming industry over the last twenty years." Mr Hale then gave a good deal of attention to the question of margarine versus butter on the British market and concluded his address with an appeal to increase production. "As dairy farmers, we have a very definite duty to-day,'" he said, "There is little need for me to urge you to increase yoiir production if you possibly can. The greater the amount of butter and cheese we send to Britain, the better we are arming her against her foes." (Mr Hale's address will be pub lished in full on Friday).