FARMERS' COSTS.

Auckland Star, Volume LXIX, Issue 225, 23 September 1938, Page 9

FARMERS' COSTS.

INCREASING BURDEN.

CANNOT BE PASSED ON.

SCARCITY- OF LABOUR, "With war in the East, the unsettled state of Europe, and the general disarrangement of trade channels, it would be a bold man who would attempt to forecast w-liat is likely to happen to overseas prices," stated Mr. H. E. Worsp, at the annual meeting of the Auckland Farmers' Freezing Company, Limited, to-day. "In Xew Zealand we have our own internal troubles and two of these that affect the farming community very seriously are the continued rise in costs and the scarcity of farm labour.

"Xew Zealand is almost entirely a primary producing country, 96 per cent of her exports coming from the soil. On these exports, and on her ability to produce these exports, none of which is peculiar to her, in competition with other countries, Xew Zealand's continued prosperity depends. Exports naturally build up dependent trades and services, and if allowed to decrease or even remain stationary, reactions must be felt throughout the whole community— especially as we have no new exports offering.

"While the Increased costs of other producers and distributors are passed on to him, the primary producer, selling in an unsheltered market, is unable to do so, as his own increased costs are not transferable. The margin which overseas prices allow him on his prodtice cannot be made stable by any action he is able to take. If advancing costs or falling prices wipe out this margin, he works at a loss; and that is the prospect that is being made disagreeably real by in the increase of taxation, heavier transport costs, dearer imports and the impossibility of procuring competent farm labour even at high wages.

'"There must be something wrong in economic conditions when labour shortage is found in essential industries— industries which are the life-blood of this country.

c *bteps must l>e taken to ensure that the farming and grazing land of this country is fully staffed, kept in order and improved, because it is from this source everyone in New Zealand directly or indirectly gets his living."