GUARANTEED PRICE

Evening Post, Volume CXXIII, Issue 133, 7 June 1937, Page 10

GUARANTEED PRICE

CRITICAL FARMERS

DAIRY FEDERATION COMMENT

Dairy farmers will give full attention, no doubt,, at their coming conference, to the Government's guaranteed price for their produce and the conditions attaching to that guarantee. The annual report of the National Dairy Federation refers to this matter, and observes that "although the immediate reaction of the industry to the announcement of the prices was ' not altogether favourable, it had to be admitted on reflection that the Government had carried out its undertaking, as expressed in the Act, in a reasonable manner. "Probably a large measure of the dissatisfaction expressed was.due to the fact that at the time the announcement was made, the London market for both butter and cheese was extremely buoyant, and prices were then in excess of those represented by the price guaranteed to producers. "GRAVE DISSATISFACTION." "We believe that had it been possible to keep production costs down to approximately the same level as the previous season, the majority of the producers would have regarded the price as satisfactory, but the continuous rise in expenditure both in the factory and on the farm, due to the Government's policy, has given rise to very grave and justified dissatisfaction. "In announcing ■ the Government's price, the Minister of Marketing claimed that a liberal interpretation of the Act had been given, and for good measure, half a million pounds had been added to compensate for any anticipated increase in production costs. This figure represents approximately .3d per lb butterfat, and will barely ] cover increases in the factory, without taking into account the much heavier increases that have taken place on the farm. . "There is every justification for the strong demand that the Government should now take this factor into, consideration, and make a retrospective payment, to compensate for the heavy increase in farming costs. "The announcement of the prices for the coming season is awaited with the I keenest interest." .