DROUGHT CAUSED LOSS OF £2,000,000

Chronicle (Levin), 25 May 1946, Page 7

DROUGHT CAUSED LOSS OF £2,000,000

-Press Association

IN DOMINION'S BUTTERFAT RETURNS

By Telegraph—

WELLINGTON, May 24. Compeiisation for loss of butterfat revcuuo which is estimated at £2,000,000, was sought by a deputation from rcpreseuttaivos of tlie dairy industry iu the drpuglit affected areas, which waited upoii thc Prime- Minister and Miuistcr of Agriculture aud Marketing Loday. Ap assurance tliat tlie i>osition 'would be invcstigated without delay, was given by tlie Prime Minister. Tlie rcpresentations wero supported by tlie Dairy Board and Dairy Industry Council. The actiug-cliairniau of tlie Dairy Board, Mr. A. Linton, introduced tlie deputation, a committee consisting of Messrs --E. (1. Appleton (Nortlicrn Wairoa), A. J. {Sinclair (Te Awauiutu), J 'Bunderland (Gisborne) sct up by tlie dairy eompauies concerncd to keep in toueh with tlie -Government on tlie subject of rcpresentations. Tlie cliicf spokesman for tlie deputation was Mr. Sinclair who is a nieniber of tlie Dairy Industry Council and in a Btateinent issued after tlie deputation, 110 stated tliat in Marcli last representatives of tlie industry waited on thc Governiiient and diseussed urgent probleins which had arisen following tlie disastrous drouglit experienced in several parts of tlie Dominion. The most urgent of those problenis was thc need of fodtler and the Prime Minister gave an undertaking tliat all the resources of the Government would be avaiiable. to save the dairy lierds for future production. Following the representations ponie 2000 tons of liav were brouglit up f ro ni the South Island and tliis helped to some extent to relieve the position i.-ut fur'her supplies were urgcntly recpiired a.u! the deputation asked the Prime Minister, as the head of the Government, to expedite deliveries. The nortli of Auckland, where tlie position was most acute in regard to fodder, liad orders outstanding at tlie moment for 7000 tons and this was desperately nccded. Tlie deputation drew the Goi ernment's attention to tlie fact tliat the industry could not tlien discuss the loss of butterfat sustained by dairy farmers 1 11 the draught affected areas as tio statistics, were avaiiable but was glad to liave an assurance that tlie Govern nient would be prepared to go into tliis matter wlien the industry was ready. "Areas wliieh liave shown an al) norinal loss in butterfat production this ycar are Nortli Auckland, South Auckland, Bav of Plentv, Gisborne, llawke's Bav aiul Canterbury, " said Mr. Sinclair. " Unfortunately the loss has not beeii confined to butterfat because dairy farmers' returns liave bcen depleted in otlier directions. The revenue from pigs has show.ji a scrious dccliue. The sea son was unfavourable for liaymaking and nianv farmers were forced to pur chase largc quantities of liav at priceconsiderablv above norinal, iu spite oi tlie celling price iixod by the Governnieut. A large minibcr of dairy cows liave liad to be disposed of as boners. This is still going bn to aii " aTamung extent and the cost of replacement wili be lieavy. llcalising the iinpossibility (j f asscssing tlie aggregate linancial los* umler all these headings, dairy coni. (lanics iu tlie drouglit allected areas ,iave concentrated on an atlempt to as? certain the actual loss of revenue from bulterfat. Some districts experienced ti decline in production much earlier tlian others and Ihe perccntage of loss from montli to luouth was much heavier in some districts than others, but . it was ngreed by dairy eoinpanios that statistics relaling 1o butterfat production slioiihl be tabulated as from Januarv 1, 19-10. Tlie dairy conipauies took the average of four years prior to tliis sea>on as a basis of eomputalion, cacli of tlie districts lieing takou separatelv. ' ' Statistics for Ilawke 's Bay and Canlerlmry were not yet avaiiable, but on the above. basis tlie loss in otlier disiriets for .Januarv, February aud Marcli of this ycar was as follows: — Nortli Auckland: Loss in butterfat, 0,903,4 1 3 llis., decrease percentage -11. 30, value, £5!' 1,752. South Auckland: Loss, 7,2!)i,7 Iti, decrease percentage 20.12, value, £02:5,201 Bav of Pleuty: Loss, 2,:! 10,1:57, d> crease percentage 2S.49, value, £197,350 Gisborne: Loss, 7.'! 1,71 2, decrease percentage 43.27, value, £02,500. Total butterfat loss, .17, 502, Oio lbs., value. £1,-177,000. With the ligures for April and May still to conie, it was estimated that the total nionetarv loss would lie approxiniat ely £2,000,000. "Thc loss of tliis revenue has placed many dairy farmers in a grave position," said Mr. Sinclair. "They are awailing anxiouslv the result of repre sentations made by today's deputation. If some definite assurance can be given by thc Government that the position will be invcstigated without delay, and if the Government will indicate now that it accepts the principle that compensation for loss of butterfat revenue will be given in view of the abnormal circumstances. this will liave a most stiinulating effect on the outlook of a great number of dairy farmers tlirougliout the drouglit affected areas and wili enable theni to take all steps possible to restore production."