"DISAPPOINTING" PRICE

Hawke's Bay Herald-Tribune, Issue 191, 30 August 1937, Page 6

"DISAPPOINTING" PRICE

•Press Associalioii.)

Will Not Cover the Increase in Costs

(By TaLsraph—

INVERCAEGILL", Last Night. Disappointment with the new guaranteed price was expressed to-day by men in the dairy industry in SouthlaUd, the general opinion being that the advance will not cover the increase in costs. " In face of the fact that dairymen 'a costs have increased during the past year by approximately 3 l-3d lb. butter- • fat, the guaranteed price just announced for .the coming season is disappointing, to say the least," said Mr. A. E. Johnston, president of tho Southland1 Provincial executive of the Farmers' Union. "It is hard to understand the reasoning of those responsible for iixing it unless their object is to tuni many of our dairymen to other means of livelihood. "It would be reasonable to suggest that the price-fixing committee should have taken the increased and increasing costs more into consideration, since its price last year was based on the previous nine or ten years of comparatively low prices and low costs of production. "Some dairymen who are in more fortunate circumstances, and these will vary on account of many influences, may be able to carry on, but those who are most in need of help in order to continuo to do their part in helping to produce the bulk of New Zealand 's wealth are going to be forced out of business. The industry is being left in mueh the same position as it was during the depression years. "Tho Farmers ' Union has pledged its support to a compensated price campaign, which is nothing more or less than a just demapd for the gap between the farmers' costs and prices to be closed either by a reduction of costs or by an increase in prices, which will allow the producer to pay his way in a satisfactory manner and allow him remuneraLion commensurate with the servieie he renders and with that obtained by other members of the community who ren^er equal service. "I think. that now the very strongest representation should be made to -the Government through the compensated price committee, and if the Government atill refusos, as it says it does, to listen to tho demands, the question of further action will have to be seriously considered. ' *