DAIRYING PROBLEMS

Bay of Plenty Beacon, Volume 2, Issue 149, 19 April 1940, Page 2

DAIRYING PROBLEMS

GUARANTEED PRICE and FARM LABOUR PRODUCTION DIFFICULTIES OUTLINED DAIRY BOARD CHAIRMAN'S REPORT At the Bay of Plenty Ward Conference of the New Zealand Dairy Board, the Chairman, Mr W. E. Hale, addressed members as follows: — Since last we met you at these Ward Conferences, the outbreak of war has completely altered' the whole outlook for the dairyindustry, and has added very seriously to many of our most pressing problems. With a full sense of its responsibility to the industry, the Board at the outbreak of war offered the full cooperation of the industry to the Government. We felt that the time had gone by when our more personal problems shouldi be emphasised, and that wa should all unite in a common! effort to win the war. We werqi told by the Government that the greatest contribution which New Zealand farmers could make t« the war effort would be to ini crease the production of dairy produce, and particularly bacon* and that any assistance which) the Government could give t« help in bringing about that increase would be given.

Matters which were in dis- ] pute as between the Minister of 1 Marketing and the industry, re- j presented by the Board, were, by common consent, held over till the conclusion of the war* and since last September wef have done everything possible to assist in bringing about creased production. I regret to say that, though the need for an increased price to offset increased and increasing costs was repeatedly stressed to the Minister as the one sure way to bring about an immediate improvement in production. the Minister would not agree to any increase, and we have as you know been working on the 1938-39 price throughout the wholn of this season. Farmers' Greater Efforts. It may be said by some who are not well acquainted with our industry that there has been an increase in production this year and that this proves that the present price is adequate. Gentlemen, this year's increased production has been brought about by the forces of nature and a particularly kindly season in those districts from which our greatest quantities of dairy produce come. In part too it has been brought into being as a resul/t of greater effort on the part of our dairy farmers, their wives and families, Avho now, to a greater extent than ever before, are called on to assist on the farm.

Dairying Less Attractive. Production has been falling in New Zealand during the past three sea-* sons because dairying under high cost conditions is less attractive than formerly. The present season's small increase is not due to any increased popularity in dairying. The symptoms that have caused the decline in past seasons are still there, and unless particularly favourable climatic conditions are experienced next season, there is likely to be a downward trend once more i despite al'l the effort which farmers l will make to increase their production as part of a great war effort. I suppose there are many factors which have contributed to the pre-* sent position. Without doubt there is a feeling in all country districts that the effort required to product a very modest living from dairying is much greater than that required from the majority of city workers, and that the hours and conditions of work compare exceedingly unfavourably. New Zealand Dependent on Production. New Zealand depends on her prob duction. It is her life-blood, and I notice that at the recent Labour Party Conference, the Minister of Finance, Mr Nash, himself drew attention to the fact that we had consumed £28,000,000 more in goods over the past few years than we had produced, his point being that fur-> ther progress must come from in-

creased production on the part of the workers. One would be more hopeful of the future if one saw some evidence that certain sections of the workers —such for instance as the watersiders—were showing recognition of the fact that only byincreased efficiency could better living conditions be secured. Dairy farmers who are tied, under the guaranteed price, to very high standards of efficiency—standards which have been arbitrarily imposed by the Minister —feel that it is about time that efiiciency of a similar nature is demanded from other sections of the community in their work. It is difficult to attract labour to farms when city conditions both as to wages and hours of work, are made so extremely attractive, and unless some very ladical alteration is made in present policy I cannot see how increased production can be secured. Farm Labour Position. The farm labour position is iiv finitely more serious to-day than it was last season because of the large number of enlistments of country boys in the army. From a know* ledge of a number of different districts, I would hazard the opinion that from 20 to 25 per cent of those who have so far gone overseas have been farm workers. In the first instance their enlistment welcomed by the military authorities who realise the calibre of men who are used to an outdoor life and who can quickly be traine 1 to become good soldiers.

Representations were made 1o the Government before long, and I must say that the Government did everything it could to help improve the position. Its efforts were however only partly effective; I expect you know—as I do—of numerous cases where a farm boy went to enlist, was told that he was in a reserved occupation, so threw up his iob, became unemployed, and thereafter was accepted. You cannot blame boys with an adventurous spirit. It is all to the good that wc still have these qualities in evidence in our young people, but we said, and still say, that the onlv way to prevent their going—and the only way which is fair to them—is either to have conscription, or at the very least to have a national register of manpower. Value of Trained Worker. The truth of the matter is thajt to-day production is so vitalJy im«> portant from the viewpoint of Great Britain that a trained farm worker fs of greater value in his job than in a uniform. If there were conscription that position would be clear and no stigma would attach to these farm boys. As it is to-day many of them feel that it is their duty to go, and by devious ways they see that they do go. I have no doubt that the conditions will be tightened up but now the position is extremely difficult. Before the war came we were short of farm labour in many districts, and now with some thousands actually in the Forces, the situation is aculc.

If we are to have increased production next season this farm labour question will have to be tackled seriously by the Government which is the only authority able to deaj with the matter. I must confess that the solution of the difficulties a thing which puzzles me, and I am afraid that some form of sub-| sidy appears inevitable under present conditions. Future Outlook. What is the future outlook for our industry, both during the war and after? I think that even the

Government must be disturbed at the decreases in production which have taken place, and must realise that remedial measures are needed because of the lack of balance between rewards in country and city. Assistance to our industry to improve our position can come in three ways:—■ 1. Through an increase in the guaranted price. 2. Through subsidies on fertilisers. wages, etc. 3. Through a reduction in our costs.

I propose to deal very briefly with these three. You all know that under the Guaranteed Price Act, the farmer is definitely guaranteed price based on his costs, and that when the guaranteed price policy was originally under discussion, the whole emphasis was placed on a price that covered costs of production, irrespective of market realisations. Repeatedly we were told that there was no need for us to worry where the money was coming from, and that there was no difficulty in maintaining a "New Zealand price." We woW like to feel, gentlemen,, that those same ideas were held 1 by the Minister of Marketing to-day, and that we are assured next sea— son of getting a guaranteed price covering all our costs. You will agree with me I think that there are more and more of us in the industry coming round to the viewpoint that all that we have to-day is ai\ equalised price, and that the Government itself is trying more and more to work itself into the position of paying no more than market realisations. Increases in costs. If, for instance, we raise to-day the question of an increase in the guaranteed price, we are met with the reply that our produce has been sold for the duration of the war, at the present price, but that we have the opportunity of raising the question of increased costs with the British Government once a year. But we are told too that the infcreased costs mentioned are really to be looked upon as increases externally, such for instance as increases in costs of manufacturing materials used in dairy factories. Well, you know that the costs which are worrying us, are the increases in New Zealand costs. But in any case, under the Act, we shouldn't have to be worrying about this 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 Board has tried to make the Minister see the unfairness of his attitude towards the guaranteed price, but all our representations—and as you know we have made them peatedly—have been completely without effect. Even if one were to admit that last season's price was fair when it was brought into effect in July 1938, there is no one, wh'ot could for a moment suggest that the same price is still fair, whep you take into account the cost increases which have taken place since that date. The Board is genuinely perturbed at the fact that it can make no impression on the Minister so far as the price is concerned. * (Continued in Monday's issue).