THE PRICE OF BUTTER

Dominion, Volume 14, Issue 1, 27 September 1920, Page 5

THE PRICE OF BUTTER

(To the Editor.) Sir,—l hnvo read with interest your leading article on the above subject, also the evidence given before tho Parliamentary Committee, as reported in Satur- ' day's issue. There are several points on which, as yet, I cannot agree with you. I think, Sir, that it has opened up a question which is much larger and deeper than it appears at first, and one that should be looked on from all sides. The evidence given by Mr. Stone, of the Agricultural Department, regarding tho increased cost of butter production through the increased price of land, is ft point that could well bo considered. The estimated increased cost of production, taking interest at 6 per cent., varied from sd. to Hid., making an average addition of BJd. per lb. to tho cost of butter production. Mr. Singleton considers that tho price of dairying land has increased CG per cent, during tljo past six years. Now, Sir, the question to ni.v mind is: 6hould not this largo increase be entered as an asset to tho farmer? If, through the increased value of a product, tho land which produces that product is increased in value, is it right to charge the interest or cost of production at the higher rate, without also allowing that increase as an asset to be deducted from the cost of production? For instance, if the price wo shall receivo from overseas for our milk products this year is 40 per cent, more than that of last year, then land of dairying quality is sure to ro up in proportion. This will mean that the cost of producing a pound of butter-fat will then increase to correspond with that increase, although, perhaps, labour and othor necessary expenditure has not gone up. Tho samo also applies to the cows which produce tho butter-fat. The estimated cost of a cow has inoreased by 100 per cent. Now, these cowb were not purchased from ironmongers' or drapers' establishments, but were produced by the dairv farmer himself. Should interest bo charged on the increased price, without reckoning also the extra value as an assot? I think, Sir, that if Messrs. Stone and Singleton's methods of arriving at the cost of production are correct, and we continue on those lines, it is only a matter of a few years beforo the price of butter and milk to tho consumers will be such as to put them beyond the reach of any but the verv rioh, otherwise the rate of wages to all workers will have, to bo continually increased to keep pace with it, Mr. Editor, can you or your readers explain how it is that if dairying is such a distasteful, laborious, and unprofitable undertaking, so many are still anxious to take it up? How is it that even leaseholds are being sold at enormous profits, that tho price of dairying land is increasing at such a. remarkable /ate? You contend ihat tho producer of milk products is the worst paid person of all 'our industries, yet can you tell me what it is that induces so many into the industry? Wo can hardly take up a paper nowadays without seeing reports of the wonderful wages being made by coal minors .and others, and yot Mr, Massey informs us that we mo two thousand miners short in this country, and even then young, strong mon would rather take up dairying than go to the mines, where they-by figures producedcould do so much better. 1 here must have been some strong, subtle influence in grass paddocks and cow Bheds to draw so many to them in tho past, and.to still keep drawing men. Can you point out any other business whioh has been conducted for years at a loss, and yet on which the goodwills keep increasing in value? „ , . , I can show you, Sir, small dairy farms (leaseholds) in this Hutt Valley, that have changed hands several times, and each time at a largely-increased value. Not many years ago the goodwill of a milk round could bo bought at from two to three pounds per gallon. I know that eighteen months ago. ono of the best and oldest rounds ill this, valley (one of about 100 gallons) was sold tor .131)0. During the past twelve months, however, these rounds have been changing bauds, to my knowledge, up to oight pounds per gallon. Why? One thing with which I can agree with vou is that those engaged in the industry do have longor hours to work than a good many; but. Sir, there aro advantagos we enjoy that town workers and dwellers do not. Wo seem- to have reached a time when to.wn envies country and vico versa, and when wo think that all othor parts of tho community enioy more privileges and easier times thin ourselves. . I think. Sir that . wo commenced in earnest to look lor people who wore worse off than ourselves w° Uould not have far to look to flud them. It would be much better for ourselves and for the wholo country if we were to get closer togother and co-operate for each other'e good. ra,ther than try to extract all we can f:rom one a,nother.I am. etc, W. T. &IKAJSU.