DAIRY PRODUCE

Wairarapa Times-Age, 19 October 1939, Page 5

DAIRY PRODUCE

PURCHASE BY BRITAIN NEGOTIATIONS CONTINUE. POSSIBLE LOSS ON GUARANTEE. (By Telegraph—Press Association.) WELLINGTON. This Day. Factors taken into consideration in fixing the garanteed pi-ices for dairy ’ produce for the current season at the same level as last season were reviewi ed by the Minister of Marketing, Mr Nash, in a statement last evening. The Minister said that negotiations between the Governments of the United Kingdom and New Zealand concerning the prices to be paid for the Dominion’s exportable surplus of dairy produce were still in progress. The prices ultimately received from the Imperial Government might be below the level of those being paid to the dairy-farm-er. thus involving a possible loss in the Dairy Industry Account. Mr Nash revealed that he had informed representatives of the dairy industry that it was by no means certain that the prices received for butter and cheese from the United Kingdom Government would justify an increase in the guaranteed price. If the price offered by the Imperial Government for the total exportable output of butter and cheese were the only consideration the guaranteed price for the 1939-40 season should have been reduced. The negotiations are still in train,’’ said Mr Nash, “and the New Zealand Government has stated to the United Kingdom Government that it does not desire to take any advantage of the situation created by tne war, but that it considers that New Zealand should receive prices more in keeping with the cost of production. There have, of course, been other aspects than the actual price. These concern possible hold-up of shipping and the question of storage charges, as well as outside markets. As yet. no final price has been agreed upon with the Imperial Government. "Notwithstanding the delay in completing the agreement, and because the dairy season was in progress and in accord with my statement to the Dairy Conference and to the Dairy Board that I thought it would be preferable to guarantee to producers the same price as was paid for the 1938-39 season, a definite announcement was made on this season’s guaranteed price. It should be remembered that this was decided upon irrespective of the fact that the prices ultimately received from the Imperial Government might be below the level of those being paid to the dairy-farmer, involving a possible loss in the Dairy Industry Account.” Mr Nash said the dairy producer had been put in a position different from that of other classes of producers, who were required to accept the prices paid by the British Government. However, it was felt unreasonable to reduce the prices below those received by the dairy companies for the 1938-39 season. On the basis of the conditions prior to the outbreak of war, the guaranteed prices fixed for New Zealand butter and cheese were the equivalnet of the following London market prices: Butter, 124 s a cwt; cheese, 73s 6d a cwt. Since the outbreak of war the rates of freight and war risk insurance had risen and the corresponding London market equivalents'were much higher. The evidence proved that the industry had been continuously consulted, and that the Government was taking every possible step to ensure that reasonable prices were obtained for both butter and cheese. What was now required was full co-operation between the farmers’ industrial organisations and the Government so that production might be at the maximum, and that the produce was shipped without delay to enable the United Kingdom to make the major effort in the difficult days ahead.