DISAPPOINTING TO FARMERS

Chronicle (Levin), 8 October 1946, Page 5

DISAPPOINTING TO FARMERS

-Press Association

— ^ — . ■» . — — , NEW GUARANTEED PRICE

Bv Telearavh—

AUCKLAND, 0.e,t. 5. With the United Ivingdom G.oyernment 's contract price for New ^Zealand butter this season increased fr.om 150s Od to 175s sterling per cwt, there will be general disappointment among dairy farraers at the sm.all proportion of the increased values that is being passed Qn to them. This opinion was expressed by Mr. A. J. Sijielair, se.cretary-man-ager of the To Awamntu Co-operative Dairy Company, commenting last night on the new guarante.ed pTice. Mr. Sinclair .said the pay-out of butter factories in the Auckland Provinee this season would average approximately is 10d per 1b. butterfat. The price paid by the United Kingdom Government would enable these factories to pay out 2s lld per 1b. butteiffat if there were no econoniie stabilisation seheme operating. However, dairy farmers ?hould remember that witliout stabilisation their direet and indireet costs would be considerably higher than at present, he continued. For example, superphosphate would cost £8 16s a ton instead of £4 2s 6d. The diffierence was found at pre 1 sent from the Dairy Industry Stabilisa tion Fund whieh would show a very substanlial increase this jmar in spite of ■tlie larger demands made upon it as increased quantities of fertiliser became. available. "Dairy farmers will uijdoubtedlv take strongest exception to the small increase of 0.520d. in the labour reward factor of the guaranteed price strueture, which lias been standing at 11.440d per lb for the past 12 months," Mr. Binclair stated. "When the 44-h'our week was reduced to 40 hours in all in dustrial awards witliout alteration in the basic rate of wages .this was equivalent to an increase of almost 10 per cent. Similar treatiuent of the dairy farmer would have increased the labour reward factor by double the amount conceded by the Government." Mr. Sinclair added -that the monthly advaiice payments by dairy companies would be adjusted to meet the increased cost allowance, but it was now too late for it to be done on the pay-out ;on October 20. An adjustment retrospective to August 1 would no doubt be made when dairy companies paid out for October buttprfat supply on November 20.