DAIRYING PROBLEMS

Bay of Plenty Beacon, Volume 2, Issue 150, 22 April 1940, Page 2

DAIRYING PROBLEMS

GUARANTEED PRICE and FARM LABOUR PRODUCTION DIFFICULTIES OUTLINED DAIRY BOARD CHAIRMAN'S REPORT (Continued from Friday) - Letter to the Minister. Wc pointed out in a letter to Mr Nash what had been done in England, and asked him whether in view of this, he would take similar action here. This is what we said: "As British farmers arc being assisted by increased prices to mee!f increasing costs, is the New Zealand Government prepared to extend a like assistance to producers in this country who are at present beingjj called on to meet, out of a fixed price for their produce, additional costs of production as well as extra war costs of living imposed on them as ordinary members of the community? Note: Information to hand from the official organ of the Milk Marketing Board shows that a subsidy equivalent to an average of 3d per gallon for milk to compensate for increased costs of production liar been granted during January, February and March. Thereafter the matter is to be reconsidered." Reply Received, This is the reply we received: — "With regard to your first ques-< tion, you will I think agree that the circumstances of the farmers of the United Kingdom and of those in New Zealand are not strictly comparable. This is particularly true in regard to the subsidy to which you refer. This is being paid in the United Kingdom for milk pro duetion during the winter period and is largely associated with the extra cost of imported animal feed upon which the maintenance of the farm production of Great Britain so much depends. "In short, the differences between the United Kingdom and the New Zealand position are largely those necessitated by the special conditions ruling in the Home Country at the present time. "With reference to the costs in New Zealand, as mentioned in my conversation with your Chairman every possible step is being taken by the Government through the j Price Tribunal and by other means to prevent undue rises in the prices of commodities. "The effect of this policy will in the main be reflected in like degree on all sections of the community, who w 7 ill share in the benefits rol' the action taken. "With regard to the arrangements ! for the importation of raw mater- | ials for fertiliser, you arc of course aware that the Government is ensuring that these raw materials are available to fertiliser manufacturers at the prices ruling prior to the outbreak of the war and the manufacturers in turn have undertaken that superphosphate will be supplied to all. farmers* without increase in price. Ensuring Stability of Industry. "With the qualification that the war circumstances may compel a modification of policy, the Government recognises the necessity in the national interest of ensuring the stability of the dairy industry and will continue to take whatever steps may be necessary for this purpose. This implies that the dairy farmer will receive his fair share of the national income to enable him to maintain his comparable standard of living. "At the present time the enquiries necessary to enable the Government to determine the prices to be paid for next season's primary production arc proceeding and whilst it may take some time to complete the work,, these prices will be announced at the earliest possible date and every endeavour will be made to ensure that the payments for butter, cheese and other products are fair and just after taking into account all factors relating to the dairj r industry and the national economy. When I am in a position to do so, I shall be pleased to discuss the matter with members of your Board some time prior to the fixing of the price."

Unsatisfactory Answer. I don't know whether that answer satisfies you gentlemen, but it doesn't satisfy me. The circumstances are not dissimilar except insofar as the British costs rose substantially in a very short time, whereas ours have been consistently rising over a long period ( of time. Feeding costs loom very large in England where concentrates have to ■)e used continuously in the feeding ,)f dairy cattle, but we have heavy production costs too, and these have certainly risen.. What wc wanted to draw M:? Nash's attention to particularly was the immediate and generous response the Minister of Agriculture made in England to the requests of the British dairy farmers. They went to him with their case, were able to show him that their costs had increased, and got at once some relief. Here in New Zealand, w r e as dairy farmers have been able to prove beyond shadow of doubt that a certain price is needed to cover our costs, but we have not been able to gj3s Mr Nash to budge one iota from the position he had previously taken up. Cause of Antagonism. The second way in which the industry can be assisted is by way of subsidies. I want to clear up a point here in connection with the attitude taken by our last Dominion Dairy Conference on this matter, for there have been some misconceptions. In some districts the idea is held that the Dominion Dairy Conference refused subsidies to the dairy industry under, all circumstances. That is not the attitude which was taken. What conference thought was that the guaranteed price itself should cover increased costs and that it was far better that these should go into the price rather than that they should be paid in the form of subsidies. When people in the cities see an industry such as ours receiving subsidies they immediately think we are in a very happy position, and are thus antagonistic towards any further claims we may make. On the other hand it is our absolute right under the Act to have increased costs taken into the price, and that, we maintain, is what should be done., We all realise that if the Minister will not give heed to our representations there is nothing to be done but accept subsidies, such for instance as is now being paid by the Government in connection with fertiliser. Farm Labour Subsidy. Subsidised farm labour has never been welcomed by the great majority of our dairy farmers who would very much prefer to employ labour at good rates of pay without the need for subsidy, but unless the Government radically alters its Public Works and subsidised labour schemes in the cities, I can see no other solution than a farm labour subsidy which will allow Public Works employees to become producers rather than consumers of our wealth. Reduction in Costs. The third way in which our industry can be assisted is by way of reduction in our present costs, and I suppose there is no one present in this room who wouldn't prefer to see that method carried into effect. We, as sensible people, know that when we have to sell our produce on the worlds' market, it isn't sound to have a continually rising price with continually rising costs.

We don't like the conditions which make us seek an increase in the price, and believe that the only really sound way to tackle the great problems that face us is by reduced costs. How can we get these? I venture to say that if right throughout the country people in every walk of life put as much energy and enthusiasm into their work as the aver: age dairy farmer, costs would be re-' duced through increased output. The Government—or its leaders-— know well enough that this is true. They have been busy emphasising at their recent party conference that more work is the only way in. which more privileges can be secured, but whether they will be able to get that over with the rank and file of the workers, is another matter. How the attitudie of the men in the more radical sections of the community can be altered, is difficult to know. Reintroduction of 44-hour Week. A second way in which costs could be reduced would be through the reintroduction—even if only for the duration of the war—of the 44-hour week, without increased wages. That would bring about some reductions in costs that be extremely beneficial to the farming community. If a considerable number of our men go overseas it is difficult to see how production is to be maintained, not only in the country, but also in our and the additional four hours a week Avould greatly assist the position. The farmer is constantly told that he must increase his efficiency. I suggest that there is 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., At this stage Mr Hale dealt very fully with the question of margarine and this will be featured at a later date. "I do most earnestly urge you to do everything you can to Increase pig production. None of us to-day knows exactly what lies ahead, but all must be prepared to play their pa,rts in the common effort. Before very long we will be meeting the Minister of Marketing to discuss next year's price," said Mr Hale. "We will do our very best as a Board to place before him a thoroughly sound case on your behalf I only hope that the outcome will relieve you of some of your present worries and give you a price which bears closer relationship to your costs than does the guaranteed price today."