NEED FOR INVESTIGATION

Waikato Times, Volume 122, Issue 20513, 1 June 1938, Page 4

NEED FOR INVESTIGATION

The representations made by the Southland farmers with regard to increased costs, following on those made to the Minister of Marketing ■when he visited Morrinsville recently, should impress on the Government the need for an investigation. Mr Nash promised to try to devise a plan that would enable prices for dairy produce to be adjusted should costs rise to any extent after the prices had been announced. Nothing has since been heard of the matter, and possibly the Minister will hold that the decision to pay to producers the amount held in the Dairy Industry Account at the close of the production year will adjust the position. But there are other aspects besides that of finance that should have attention. In 1937-38 the exports of cheese dropped by 74,000 cwt. but higher price levels overseas were at once reflected and the aggregate value increased by £361,000. For the same period the export of butter showed an increase of 64,414 cwt. so that last season there must have been a substantial change over from cheese to butter. When he first discussed the question of a differential payment for supplies to cheese factories, Mr Nash admitted that it was essential for the welfare of the industry that there should be no marked movement in that direction, and it would be of service to know how he regards the latest figures. Another factor that should have immediate attention is the question of quality. There is a small premium obtainable by those factories that manufacture dairy produce of finest quality. The grading figures are said to show that last year the cheese graded finest declined by nearly 50 per cent. Many farmers contend that the grading standards were raised, and that it was difficult for most companies to reach the top grade. Others are of the opinion that the conditions imposed by the award make it too costly to incur payments for overtime in order to have the necessary attention given to the make. It appears to bfc a moot point whether the margin allowed for finest cheese is sufficient to reimburse the dairy companies for the additional expenditure incurred. It may be said that climatic conditions during the season adversely affected the output, but whatever the causes the fact remains that the quantity exported showed a sharp decline and the percentage graded as finest nlso fell rapidly. What are the official views regarding these important things? The question of quality is vital, for without it the Dominion could not hold or extend its markets. This country is by far the largest supplier of cheese to Great Britain, and for that reason alone could not view any marked change over to butter as a welcome development. The supremacy won in open competition must be held, and it is for those in control to state their views clearly. The interests of the dairy industry are not simply matters of the pay-out. There must be a policy, making for steady development and a constant effort to improve quality. The past season has been in some respects exceptional, but the producers should have the considered views of the Minister of Agriculture and the departmental authorities on the records and on the trends which they may be said to indicate.