Colonel NEWMANasked the Minister of Agriculture whether he is aware that the contract price for whole milk at present paid to producers by the United Dairies Company is 1s. 1d. per gallon, less 1d. per gallon carriage; whether this means that this company, which controls 80 per cent. of the supply, is buying at less than 3d. per quart; whether the producers' wage bill is not higher than it was last year and the price obtained for milk lower, with a consequent danger that dairy herds will be given up and certain classes of land go out of cultivation; and what action does he propose to take?
Sir A. BOSCAWENI have no information as to the contract prices paid for milk by the company in question. Such information as the Ministry has been able to obtain suggests that the334W prices at present being paid to producers generally are rather higher than that mentioned by the hon. and gallant Member. Whilst it is true that the wages of agricultural labour have risen during the last twelve months and that the producers' prices of milk on the average are lower, these are not the only factors which affect the cost of production, and so far as I am aware there is no indication that farmers are at present giving up dairying on account of the lower price obtained this year for their milk.