Dairy Farmers' Income Said To Be Failing

Chronicle (Levin), 18 May 1949, Page 5

Dairy Farmers' Income Said To Be Failing

AUCKLAND, May 17. The belief that a gradual recession in priees for dairy produce was approaehing, was expressed by Mr A. JSinclair, a member of the Dairy Board, when addressing the dairy section provincial conferenee of Federated Far niers to-day. " We have seen evidenee that Britain is getting back to a buyers' market," he said. A disturbing factor for New Zealand dairy farmers was competitiou in the world's markets from margarino production. Costs in New Zealand wouid have to come down but he dreaded that time for the farmers would be the first to experience any tightemng. However, with the guaranteed pricisystem the effect might be cushioned. • I don 't think for a moment; there is a political party in New Zealand whien wili advocate a reduction in wages," Mr Sinclair added. Dominion farmers were putting up a fine performance responding to the ap peal for increased production to aid Britain and it was ' ' touch and go ' whether the 1949-41 record would not be exeeeded, said Mr Sinclair. The increase this season was expected to be from S to 19 per cent on last season. "I am resentful at times to appeals for increased production by farmers w^en l see what other people are doing. There are people in positions whose motto is "get all you can and do as little as you can in return. " Beeause of the exchange rate adjustment the dairy industry lost £10,909,900 yearly and instead of having an expected £20,000,000 in the dairy account at the end of July, there would be a surplus of about £12., 000, 000, said Mr Sinclair. He did not agree with the contention by some farmers that the present surplus in the account belonged to the industry, or their request that when overseas realisations exeeeded the guaranteed price, the farmers be paid the difference. The system was introdueed to proteet faimiers when prices fell though farmers would not be satified until they contrilled their own produce. The present system was an improvement. Whereas the dairying industry was drawing on its funds to the extent of 4s Od per ewt., farmers could not escape the fact that these funds were- now used to bolster up the general wage increase, said Mr W. W. Oberer, chairman of thi dairy section. Since the announcement of 28.2911 per pound for butterfat, there had been a general wage increase rosulting in another 1.395d per pound fu. .Tune and July being added to the existing guaranteed price. Dairy farm workers would get their increase in weekly vvages but the employers, particularly where the season starts in August, would derive verv little benefit.