The Guardian And Evening Star, with which is incorporated the West Coast Times. SATURDAY, JANUARY 17, 1931.

Hokitika Guardian, 17 January 1931, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. SATURDAY, JANUARY 17, 1931.

OVERLAPPING

The report of the special committee set up by the Government to investigate the economic position of dairy farmers, arising from the receipt of exceptionally low values for their produce, has been received by the Minister of Agriculture, the Hon. A. J. Murdoch, aiid.a summary of the findings was issued this week by thj ActingPrime Minister, the Hon E. A. Hansom, who made reference to the attitude of the Government on certain points raised. In the synopsis of the report published earlier in the week, it was indicated that the report and recommendations ot the Committee would have prompt and careful consideration by Cabinet. The report in detail, which has been produced very promptly by the special committee of dairying experts set up to investigate the position, dealt with a number of aspects. Tt is pointed out that owing to the drop in prices the producers are handicapped seriously bv the reduction of income and consequent available capital. The collection of certain data through dairy companies is suggested so that nnv hardship cases should Ik? helped. The maintenance of production is urged strongly and the need for assisting producers to that <>nd is particularly emphasised. Another 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 imnrovement of pastures and the host known methods in the use of fertilisers; and the maximum economic conversion of grass into, butter-fat, Among other matters considered and reported upon were: (at Utilisation to the best advantage ol dairy industry by-products, CM cheaper stock foods: and (v) the effect upon business firms and financial institutions of the present Kv returns to. dnirv farmers. One other matter pointedlv referred to, is that of overlapping; in regard to operations b> dairy companies, and the consequent extra costs incurred by that, class of competiton. The paragraph in the report reads as follows:

“Another matter which was discussed was that of the effect upon dairy companies’ costs of overlapping in cream collection for butter factories, and it was recommended that dairy companies might profitably investigate this overlapping and uneconomic competition l>etween co-operative companies; and, further, that in some districts consideration could with advantage he given the amalgamation of factory interests, either in part 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 its causes definite avoidable loss, which naturaly falls back upon producers.”

This is a matter on which this paper has not been silent, and toe fact that the subject is revived from so authoritative n source, justifies us in furthei emphasising the situation as it nfiects the suppliers. What the committee says on the matter is really the obvious, and is a repetition of what has been said locally over and over again in the endeavour to draw the attention of those involved in the position. The suppliers to dairy factories generally in this district aro directly concerned financially In this matter. Any reform or savings which can he brought about in the collection and manufacture of their supplies of crenm, moans an imt proved return to the dairy farmer. At the late annual meeting of one of the local dairy factories, figures wore given out which were most arresting. Great waste is going on in this district owing to the number of small dairy factories overlapping in the work. The cost of production is increased greatly because of that overlapping, yet the remedy is not only obvious but also ready at hand. Local dairy farmers who may complain of the lov or price of butter-Tat affecting their monthly income, lose a certain amount of sympathy from the fact that, they continue to maintain a position in regard to the manufacture of their output which must rob them of the true return they would receive were this costly overlapping eliminated. No doubt there is a false prejudice and a degree of pride involved in tbe feelings current which prevent the supplier from receiving his first reward for his work. Been use of that condition, any complaints as to the present stringency of the market as affecting the producer personally, arc disconnected. What has been said now by the committee of experts drawn from the leading dairy factories of the Dominiom in regard to the cost and penalties of overlapping, should awaken in the minds of producers, the desire to have the position investigated closely with a view to a review of the situation so as to change conditions, and remove the present draw-hack to the betterment of local conditions.