GUARANTEED PRICE

Manawatu Standard, Volume LVII, Issue 223, 20 August 1937, Page 6

GUARANTEED PRICE

ITS RELATION TO COSTS. ' ' “BENEFIT SWALLOWED UP.” “I cannot help thinking that it is somewhat contradictory to more or less commend the Government’s guaranteed price scheme and then to turn round and try to face up to the appalling problem of rising costs,” declared Mr G. J. Wilde at yesterday’s meeting of the Manavvatu Herd-Testing Association. . Mr Wilde pointed out that the opening paragraph of the annual report had stated that “the guaranteed price for dairy produce has given a more settled outlook to farmers' finances and enabled budgeting of farm expenditure with a reasonable degree of accuracy.” Then in moving the adoption of that report the chairman had stressed the seriousness of the mounting costs of the herd-testing service. “Any benefit from the guaranteed price,” added Mr Wilde, “has been swallowed up in increased costs and there is general dissatisfaction. It does not seem right that we should give unqualified support to the scheme.” He went on to eay that the guaranteed price would be alright if it was made retrospective and fixed with a due regard for costs, but at present a farmer could no more budget with a reasonable degree of accuracy than he could when produce was sold on the open market. “We know what we are getting, but we don’t know from day to day what it is going to cost us to get it,” he dedared. The chairman (Mr W. H. Gimblett) said that when the guaranteed price was announced twelve months ago farmers were well satisfied; it had been a big improvement on what they had been getting, but because the market valije of the produce had risen during the year beyond the guaranteed price there had been 6ome dissatisfaction. “The surplus after all belongs to the industry,” lie added, “and perhaps next year the guaranteed price will exceed the world market value.” Mr Wilde: But that does not get away from the question of costs. We were satisfied with the price a year in its relation to costs as they were then; but the benefit has been swallowed up in the meantime. The chairman : We are assured that the price fixed will be much better this year. . . Mr Wilde: And if costs go on rising we a.re no better off. The farmer, unlike many people, cannot pass the costs There was no motion proposed and the matter then lapsed.