WHY DAIRYING STAGNATES

Shannon News, 17 May 1927, Page 4

WHY DAIRYING STAGNATES

A PECULIAR LINE OF REASONING

Giving evidence before the Tariff Board in Melbourne a few weeks ago, Air. R. Crowe, the Export Superintendent of the Victorian Department of Agriculture said:—

“The main cause for the present unsatisfactory position of the dairying industry was owing to the increased cost of production and decreased prices. The increased duty of from 2d .to 6d. per lb. asked for by the industry would not operate similarly to duties imposed to protect secondary 'industries. It would merely have the effect of protecting Australian dairymen during bad seasons.”

“Mr Crowe’s statement confirms the oft-expressed opinions of this journal” comments the Queensland ‘Producers’ Review.’ “Even farmers do not realise that any duty imposed on agricultural products imported into Australia is of no value to them if there is a surplus for export. For instance even if dairymen had a protective duty of 5/- per lb. to prevent butter being imported into Australia, the price of dairying products sold in Australia would be 1/- per lb. if that were the world’s parity price.” This line of reasoning is somewhat difficult to follow. If it is a fact that an import duty has no influence on the price as suggested by the writer in the Review, why all the agitation for a higher duty. For many years to come Australia will have a considerable exportable surplus, and if local prices are so completely governed by'export parity as suggested, an import duty would afford small protection for the Australian dairy farmer. '