A CRISIS MAY ARISE, THINKS MR MARSHALL

Bay of Plenty Beacon, Volume 15, Issue 93, 8 September 1950, Page 7

A CRISIS MAY ARISE, THINKS MR MARSHALL

The chairman of the New Zealand Dairy products Marketing Commission, Mr W. Marshall, told the Dairy Board conference that the dairy price deadlock should be taken as a red light of warning to the people of New Zealand. He said if costs of production were to go on being pushed up and if this menace were added to the menace of falling prices a crisis would m due time arise. Mr Marshall said there was no immediate crisis for ' the dairy industry, because it had the protection of the guaranteed price, which took care of farmers’ costs on a just basis.

The maximum fall there could be in prices from Britain in any one year under the long-term contract was £3,750,000 and the industry nad £lB million in reserves. There was a secure market for all the butter and cheese New Zealand could export to the United Kingdom while the contract remained.

These facts gave the industry greater economic secui’ity for five years ahead than could normally be expected in this uncertain world. It was unfortunate, however, that the industry should have to draw on its reserves when prifces were at their peak throughout the world. This ought to be taken as a red light, indicating danger ahead. “But can’t we treat it as a red light not only for the industry but for the whole of the people of New Zealand?” he asked. “There- will be a problem for everyone, farmers and all, if we go on pushing up costs as we have done.

“We have now seen a rise of over lid a lb in the cost of butterfat for butter and Ifd a lb in the cost of butterfat for cheese. There is now the danger that in a few weeks there may be another substantia] increase which would affect not only our industry account but the country’s finances. (He was referring to wages). “If to this menace of falling prices we add the menace of rising costs in New Zealand, then a crisis will in due time come to this industry and to the country as a whole,” said Mr Marshall. “I make bold to say that this need not and ought not to happen.”