Farmers Have Deep Sense Of Resentment

Chronicle (Levin), 13 June 1949, Page 3

Farmers Have Deep Sense Of Resentment

The alteration of the exchange rate In August last year left primary producers in a state of complete bewildermont as to their future position, states the annual report of the National Dairy Federation.. In the case of the dairy farmers there was added a deep sense of resentment that the Minister of Finance (Mr. Nash) had made tne change immediately after the industry had entered into a seven-year contract with the Imperial Government for tne sale of its exportable butter and cheese. The unpalatable fact which faced the primary producers was that their gross income had been cut hy 20 per cent. overnight, against which they had the doubtful credit of a possible reduction in operating costs. ( ' ' Owing to the operation of the guaranteed price, the effect on dairy producers (and 'meat producers) has not been as immediate as on other types or export farming," says the report. "The long-term effect, however, must inevitably be that all export producers' ineoines will be reduced, and if a similar adjustment is not made throughout the whole community, the producers' ! position must become increasingly difficult, and the balanco between primary and secondary industrios further npset. "The Minister 's argument that the operation of the guaranteed price will protect the farmers' interests can be disregarded. In the event of a serious recession in overseas prices, the early dopletion of the stabilisation funds, which were designed to have a cushioning effect, will throw producers on the mercy of the Government, which, in sucli economic circumstances, would probably not have the mea^is to assist— even if it had the will. "No oue is more conscious than primary producers thomselves of the faet that the present peak prices are transitory, brought about by world shortages as a result of the war, hnd that a period of recession must f'ollow. Signs are not laeking that the crbst " hah beeq reached, even if not actuaily passed. ' _ "No thinking person can believe that the Imperial Government will continue | to pay over £450,000,000 annualiy in I food subsidies, and immediately these ' are withdrawn or reduced, there can be only two alternatives: Either the prices of our butter and cheese mus,t be raised to the masses of the British consumers (widening the already huge gap between the cost of butter and margarine), or we must accept a lower flgure. The indications all poiat to thi

llattei, and it as thefefore ,^ery distuhb- ' ing 'to '-produeers ib xeaiise that !i^#sv. Zealand 's internal econonly his become firmly entrenched on a higher cost structure than ever, despi 3 the exchange adjustment."