THE FIRST YEAR.

Waikato Times, Volume 121, Issue 20260, 31 July 1937, Page 6

THE FIRST YEAR.

The Government’s plan for the State-marketing of dairy produce overseas commenced on August 1, 1936, so that the first year of the new order will close to-night. Prior to the inauguration of the scheme delegates representing the industry passed a resolution thanking the Ministers of Finance and Agriculture for the opportunity to examine the Marketing Bill, but they were careful to state in the motion: “No resolution or opinion expressed at this conference could be construed as an endorsement by the industry of the Government’s proposals, or responsibility for the steps taken.” A somewhat similar line was taken at the recent conference in Hamilton, but the dairy company directors and the producers have shown their willingness to do whatever lay in their power to assist in making the plan a success. In view of the vital issues at stake they could not have taken any other course. The welfare of the whole industry was involved in the operation of the scheme, and even those who personally opposed its basic principles, State-ownership and control of marketing, have worked actively to ensure that the plan might prove efficient. , , _ , ,

The accounts for the first year will close to-night, and the details will be awaited with the keenest possible interest. Estimates as to the balances likely to be disclosed have varied greatly but it now seems to be generally accepted that there will be a substantial credit balance with respect to cheese transactions. The position with regard to butter is not so definite, although the marked improvement in overseas markets during the past few weeks must have assisted materially to reduce any overdraft. The question of the use to which any credit balance is to be put has been exercising the minds of directors and suppliers of cheese-making companies, but, although some ministerial statements may appear to have been conflicting, there have been admissions that the producers were entitled to all the available proceeds from the sale of their butter and cheese, and that is what will be demanded. The interim report issued by the Price Committee has strengthened the hands of cheese company suppliers. The differential payment is to be raised to 2d for the coming year, and that is the clearest possible admission that the previous margin was not sufficient.

There will be two items of major importance to be dealt with early in the second year of the guaranteed price scheme. One is the use to be made of any credit balance in the Dairy Industry Account, and the other the prices to be paid for the 1937-38 output. Apparently there is not much likelihood of prices being announced until fairly late in the month. The statement that in the meantime the first year’s prices will be maintained is, of course, purely formal. Shipments made will be paid for at whatever prices are fixed for the coming year. It is unsatisfactory for those engaged in the industry not to know what the return will be, but the circumstances this year are unusual, and in the long run the producers will not lose anything by the delay in announcing the prices. These are the two things that will command the undivided attention of all engaged in dairy farming. Both will establish precedents, and that is what makes them of such great importance. If any credit balance is divided among the companies affected then farmers should be able to take it that the same procedure will be followed in the future. And, if the new prices make adequate provision to cover rising costs, that, too, will establish a precedent that will be of value in the years ahead. _____________________