DAIRY INDUSTRY

Wairarapa Times-Age, 29 November 1940, Page 3

DAIRY INDUSTRY

GUARANTEED PRICE EFFECT of increasing costs. REVIEW BY DAIRY BOARD. (By Telegraph—Press Association.) WELLINGTON. This Day. The effect of increasing costs in relation to the guaranteed price is referred to in the New Zealand Dairy Board's report for the 12 months ended July 31, 1940. The report points out that the industry was unanimous in its desire to meet the British Government’s requirements for produce at the -1938-39 prices guaranteed by the Government; but. circumstances in New Zealand itself had altered in 1939-40, when “considerable unrest developed in the industry, due to dissatisfaction with the announced price in view of rising costs.” The report stresses that the trouble was not the price but the costs. Those costs are itemised in the report and they include advances of 5 per cent made in the wages of county council labourers, lorry drivers, coal miners (by Government subsidy), and waterside workers. The industry claimed an increase in price to meet increases in its costs. Subsequently wage increases were granted to dairy-factory workers. The dairy-farmers, as stated in the report, contended that “if the policy is to grant increases to various sections of the community to cover increased costs, the dairy-farmer is entitled to be placed on the same basis;" and that he would require an increase to meet higher costs since the present price was fixed in 1938, “a comparable increase in the labour reward to meet the higher costs of living.” Other features in the report are increases in production of butter by 9.02 per cent and cheese by 14.95 per cent over last season’s returns, and the change-over from butter to cheese making to meet Ihe demands of the British Government for cheese. Reviewing quality, the director of the Dairy Division, Mr W. M. Singleton, contributes a report in which he states that the average grade of the season’s butter was 93.343 points, compared with 93.422 points for 1939; and for cheese, 92.112 points, compared with 92.276 points for 1939. Reference is made by the director to “feed flavour” in much otherwise excellent butter; and as to cheese he reports favourably. Statistical infoimation in the report shows that compared with 1938-39 the number of cows milked in 1939-40 was 1,739,874. against 1.744,478; the increase in butter for 1940 was 14.955 per cent, and in cheese 10.342 per cent. Quantities graded:— 1939 1940 Tons. Tons. Butler 122.272 133.303 Cheese 81.507 93,696 Competition of butter with margarine in the British market, specially after the war. receives special consideration in the report.