USE OF FERTILISERS.

Auckland Star, Volume LXII, Issue 15, 19 January 1931, Page 4

USE OF FERTILISERS.

DROP IN TRADE

GOVERNMENT CONCERNED,

The drastic fall in the returns obtained from the land by Dominion farmers is having an effect that may be far-reaching in its baneful results. As is well known, the farmers in the Auckland province, and particularly in the Waikato, have revolutionised the dairy industry and increased production to a degree that 10 years ago, would have not been deemed credible, largely as the result of using fertilisers. Now that receipts have fallen so low that many are in financial straits, there is a natural tendency to spend less money on manures. The farmer knows his land needs this form of replenishment; he knows that he now has bo eell l%lb of butter for the same mon«\y ae he formerly received 'for lib; he knows that without fertilisers his production will drop, yet he is powerless for want of funds to buy what he needs and what the country needs if our exports are to be kept up so that New Zealand as a whole may pay its way.

The problem <s acute, and as such is recognised iby the Government which has called a conference for Friday of this week, at which representatives of New Zealand fertiliser manufacturers will meet the Director-General of Agriculture and probably the Minister also. Matters that will doubtless be considered, will be the cost of fertilisers and the financing of fanners in purchasing them.

It has been suggested that the manufacturers may be asked to reduce their charges, 'but in this connection a definite pronouncement has been made that no reduction can be effected. It is pointed out that raw material and wages are unaltered, and on the other hand, increased taxation and exchange rates have considerably a tided to costs. Moreover, lessened output has placed the manufacturers dn a worse position than before in regard to costs. It is of course, possible that the Government may be sufficiently seized of the importance of the matter from the national aspect to make a straight out subsidy to the farmer on hie fertiliser purchases. Should any such action have the effect of increasing output, it is quite possible that manufacturers anight be able to respond with lower rates.

The question of turnover 'has also to be considered in regard to the raw product obtained from Nauru Island. through the British Phosphate Commission. It is understood that last year showed a marked falling off in the exports from Nauru, and if this trend should be continued and possibly accentuated during the coming year, it is probable that rates may be raised. Such an increase would inevitably be reflected in the cost to the local farmer. It has been euggested that considering the national connection with Britain in relation to Nauru Island, the Government may take action to stabilise' prices over the present difficult period.

One thing is certain, namely that it would be a definite loss to the whole Dominion if our dairy production and our supplies of fat lambs should be permitted to decrease at the present- time.