TO HELP DAIRY FARMERS

Hokitika Guardian, 16 January 1931, Page 2

TO HELP DAIRY FARMERS

COMMITTEE’S - FINDINGS.

SUMMARISED BY MINISTER

WELLINGTON, Jan. 13. •TTie report df ’the special committee set up by the l Govermneiit to investigate the economic position, of dairy farmers arising from ihe.rec.eipt of .exceptionally low value for their proco, has been recieved by the Minister of Agriculture, the Hon A. J. Murdoch, arid a sununary of the findings was issued to-day by the Acting-Prime Minister, the Hon. E. A. Random, who made, reference to the attitude of the Gqvernmpnt on certain points raised, , In' his statement, Mr Ransom said tte ; ‘ cotnmittee Was of opinion that the present low values for dairy produce would pmkq it impossible for a proportion, of .farmers "to. meet their obligations,’ Among other suggestions iby, the qommittee ' was one , that .dairy com-pnnieh'-should be asked, to not ng a “Clearing house V fpr the collection, of confidential information concerning cases of hardship.. The- Government Jjad adqp.ted this suggestion, and upon being' received it would be possible to go into the ~ question ofgriinting. relief, , ' , . qoiifyiniitef' wap; that' production should Ije-ijept up, and it made.suggestions to this* qnd. .iThe' committee . drew qttentiori.to the danger‘of neglecting: top-dytfi9ij(f?/-&nd emphasised theyalpe of, hercj-tfatjng, and urged companies to avoid in cream collection; suggesting -the amalgamation of, sorye copperns with a view to eliminating needless costs. y>U /■Mr Ransom 1 , said that the, report would have prompt and careful consideration/ L. ; • f ■

SERIOUSLY REDUCED CAPITAL

• 'fhe personnel of the committee" itself was : mainly composed of gentlemen who, qs dairy company pr secretaries, are intimately associated witfi the business and- financial aspects of, the dairy industry, together with the Director of. the Dairy Division, the economist to the Department op Agriculture, and the secretary of the Dairy Board. Mr Ransom said that in addition to the chairman of ,the Dairy Board, the Director-General and Assistant Director-General of Agriculture attended. in order to render all assistance possible. The Department of Agriculture provided a quantity of information based on an economic survey of 1654 dairy farms in the North Island, which; proved very helpful, Generally speaking, the committee formed the opinion that while °n figures a good many dairy farmers wqre in difficulties, owing to the low telling values of dairy produce, nevertheless a considerable number were, by Virtue of high production apd freedom from excessive flnanoia} liability, secure in their finances even' at those low values. It is, .however, .obvious that the heavy fall in butter-fat values represents. seriously reduced capital invested in land and stock upon which interest can' be paid. It was concluded that continuation of the present low values for dairy produce will, render it impossible for n proportion of dairy farmers to meet their obligations.

INFORMATION SOUGHT

The ’ committee felt itself at this stage unaible to estimate the extent of the difficulty or to make any concrete suggestions regarding relief measures, knowledge wajs needed. In order to oba clearer understanding, more definite knowledge was needed. In order to obtain this is was recommended that dariy companies should 'be asked to ' asflist by acting as clearing-houses for •information as to cases o* hardship among their suppliers, and perhaps in an intermediary capacity. The Government hap decided to adopt this suggestion, as any suppliers concerned would probably he willing to give the necessary information in strict confidence to thb companies. When this information is obtained arid reviewed, it .will he possible to arrive at some conclusion as to the extent of the difficulty existing and to consider the question of relief in accordance with such conclusion. The data available led the committee to conclude that tue most important factor regarding costs as affecting the financial position of the .dairy industry in interest indebtedness, represented by mortagages upon land, implements, stock and chattels, and that the payment of instalments of interest appears to constitute farmers* most difficult problem.

INCREASING PRODUCTION.

An important matter having a direct betting upon the general position is that of ensuring continuance of production at or above the present level, and the committee wcb of opinion that consideration should at once be given to the question of faking any necessary and practicable steps to ensure that efficient fertilising of dairy farm pastures be continued. Evidence was produced to the effect that in some areas, at any rate, much less top dressing would be done this season, with the probable result of lessened production Much thought was given this, and recommendations as to meeting the position were framed for the consideration of the Government. It was also resolved that continued efforts should he made to increase herd

improvement and yield by herd-testing, seeing, ihat increased production means •decreased cost.

OVERLAPPING

Another matter .which was discussed way that of the effect upon dairy companies’ costs of : overlapping ■in cream collection for butter factories and milk collection for., cheese.-factories, and it was recommended that dairy companies might profitably/investigate this overlapping and uneconomic competition between :co-operative-companies; and, further, that in some districts consideration "could with advantage be given the 1 amalgamation "of factory interests, either in payt or whole: There is certainly great, need for reform in this matter of overlapping in the collection of cream and milk; and the additional cost resulting from it causes definite avoidable loss, which naturally tails back upon producers. Anqther. recommendation made 'by the committee dealt with ■ the intensification of instruction and - research aimed at improvement of the standard of dairy farming and the health of dairy stock, including continued improvement of pastures and the bestknown methods in the use of fertilisers, and-the maximum economic conversion of grass into butter-fat,

OTHER MATTERS,

Among .other, maftets. considered and reported upon 1 were :(a) Utilisation to the best advantage, of dairy industry by products; (lb)., cheaper stock -food**; and.(c) the effect upon business firms ard financial, institutions of the present low'returns to' dairy farmers, - . ReBolqtlons dealing’ With iheso were submitted.

Thp whole report will have the prompt and very careful consideration of the Government,” said Mr Ransom, “ and if, us seems, likely to be the case, it appears necessary, after securing the additional information required, again to consult the committee and the heads .of the - dairy industry' 'this wilj be done. The assistance already rendered by the committee is very highly valued.”