DAIRY INDUSTRY

Waikato Times, Volume 121, Issue 20275, 18 August 1937, Page 8

DAIRY INDUSTRY

PROBLEMS DISCUSSED

DISPERSAL OF SURPLUS. DIFFERENTIAL PRICE MARGIN. COMPANY’S WARD CONFERENCE. Problems facing the dairy industry c in respect to production and market- jing were discussed by Mr A. J. Mur- t doch, chairman of the New Zealand t Dairy Board, in an address to sup- i pliers of the New Zealand Dairy f Company at the annual ward confer- a ence In Hamilton to-day. There was a good attendance. Mr W. E. Hale, j the company’s representative on the ( Dairy Board, presided. t The Minister of Marketing had ad- t mitted that if there happened to be any surplus in the Dairy Industry Ac- > count at the close of the year he ( would consult the industry regarding ( the dispersal of that surplus in the t interests of the industry, said Mr ( Murdoch. It was apparent now that t a loss would be shown in respect to butter in the account but there would t certainly be a profit shown on cheese, c As the Minister of Marketing was also 1 Minister of Finance it might be as- c sumed that he would use the profit t on cheese to offset the loss on butter- t The speaker referred to estimates of < the probable deficit in the account and 1 gave it as his opinion that the real deficit would be between £250,000 ( and £500,000. Effect of Higher Costs. Referring to the increased costs 1 with which cheese factories in the r Wairarapa were loaded at present, Mr Murdoch said that these increases had 1 lately risen from 2s ltid to 4s 2Jd 1 per cwt. The increase had been so

great that the factories might be compelled to change over to butterproduction, unless some relief were available. The production of cheese, which was much easier to deal with than butter, would be encouraged to expand rather than penalised. The speaker understood that the Government had agreed to pay them a 2d differential price, but whether that additional payment was suflleient to counteract the rising costs remained to be seen. Shipping Freights. Even ship freights from New Zealand were up this year, Mr Murdoch continued, the general increase being 2£ per cent. This was in startling contrast to the level across the Tasman, Australian shippers having actually secured reductions in freight charges. It was to be hoped that some explanation of this situation would be provided by Mr Nash, otherwise the industry would have to ask him for some explanation. Some would agree with the new marketing system and some would not, said Mr Murdoch. However, It was said th.it the present system was a perfect one and there were members of the present Government who took credit fur j|, but the marketing machine as it operated to-day was the machine that had been built up and perfected by the industry through the New Zealand Dairy Hoard. Margin for Cheese. The Dairy Hoard felt that it was in duty-hound to adhere to the resolution passed at last year's conference, namely that the differential price margin between butler atul cheese should be increased by I id. There were some ; who argued that the producers should I gel all the surplus in the dairy industry account, hut it was apparent that ; il would be preferable to strive to eb--1 tain tin! differential margin as expressed in the resolution passed last • year. There seemed to be no possibility of obtaining an increase of .'hi • as was apparently hoped for in some quarters. ! Costs bad risen steadily and were still rising. Last week In Auckland, staled Mr Murdoch, lie had been (old by ship owners that ship captains were • demanding up to i.7*n per month and ’ that 11 1 <• Minister of Mines, the lion. I*. Weldi, had intervened in the dispute and had told them that, he . would give, them a certain time to adjust their freight charges to a level [ that w.-uld enable them to meet the wages demanded. It was apparent f that any increase in freight charges , would be an extra burden on producers. j "We have been endeavouring to have the national dairy instruction scheme introduced, hut we have made lilt!'• ]•!•. gross." said Mr Murdoch, i "The hairy Hoard was prepared to ;• provide £ h».duo to lie utilised for farm dairy instruction and the Government j has slated that <>u per cent, of the cost I ol the scheme should be borne by the ,i producers themselves. The Dairy u Hoard is anxious |o carry on with the \ scheme, but to dale we have received y eenied." I “Producers will be doing themselves I a serxice am} will substantially cut. normally, if they could reduce their u herds, ’ou! at Ibe same lime maintain ~ production. - ’ commented .Mr Murdoch p »' I'eferriiur to the growth of the lierdBobby Calf Industry.