The Waikato Times THURSDAY, AUGUST 19, 1937. A STRENUOUS PERIOD.

Waikato Times, Volume 121, Issue 20276, 19 August 1937, Page 8

The Waikato Times THURSDAY, AUGUST 19, 1937. A STRENUOUS PERIOD.

The unprecedented conditions that have obtained in the dairy industry during the past year, with the inauguration of a new system of marketing, involving State ownership of all the butter and cheese exported, must have meant a strenuous period for those who direct dairy company operations. A year ago the chairman of the New Zealand Dairy Company, at the annual meeting, had to note the changes made, and pending, and he mentioned the undertaking given by the Government to review the position if costs rose unduly. That undertaking was not carried out, although members of the Ministry were convinced, when facts and figures were placed before them here, that something should be done. The promise to afford assistance was subject to one qualification, an unexpected rise m costs, and no one has yet asserted that costs, both on the farms and in the factories, did not advance during the year, particularly on the farms. A year ago the company’s suppliers knew what prices were to be paid for butter and cheese when they met at the annual meeting, and they fully expected that they would know what the prices were to be for the 1937-38 season when they met again this year. They have been disappointed in that respect. All the data have been examined, and the recommendations of the Price Committee have been in the hands of Cabinet for some days. It would have been of great value to those who control operations had they known what returns were to be obtained for the output during the current season, and they certainly will expect that this delay will not recur. The circumstances have been unusual, and doubtless the views of the Minister of Marketing had to be obtained, but business cannot be run satisfactorily unless the vital matter of prices has been settled, in this case not by negotiation but by ministerial decision. It will be noticed that Mr McKenzie gave the suppliers his personal considered opinion as to individual policy for the current year. He mentioned the need for a steady reduction of liabilities, and urged producers to put their financial houses in order. The advice will carry weight. The experience of past years will not be forgotten, and one of the lessons that had to be learned was the crippling effect of liabilities. The official figures may not be altogether a reliable guide, for the time being, because they include so many adjustments, but when due allowance has been made foi these things it is evident that many farmers have adopted this policy already. During the next few weeks, at the outside, information of great importance to all dairy farmers must be disclosed. There will be the prices to be paid for the exports, and also the use that is to bo made of any surplus in the Dairy Industry Account on account of cheese shipments. Both these matters are of moment to the suppliers of the largest company engaged in the industry, and it is unfortunate that the information was not available in time for a full and frank discussion. The existing order with regard to marketing has no more assurance of permanence than had the one it replaced, and the directors, management and suppliers of the New Zealand Dairy Company are intimately concerned in the outcome of what the Minister of Agriculture called a tremendous experiment.