Bay of Plenty Times. SATURDAY, APRIL 8th., 1933. PRODUCTION DIVERSITY.

Bay of Plenty Times, Volume LX, Issue 11086, 8 April 1933, Page 2

Bay of Plenty Times. SATURDAY, APRIL Bth., 1933. PRODUCTION DIVERSITY.

Mr D. O. Williams, economist at Massey Agricultural College, does not often come into the limelight, but w'hen he does, it is to some purpose for he has a message to deliver that is worth pondering over. Addressing the Palmerston North Rotary Club last Tuesday, he expressed the opinion that a greater variety of products, and less dependence on the United Kingdom, were tw r o of the basic needs for the modification of the Dominion’s economic structure. Thoughtful students of the economics of production and distribution will not dispute that. In the past we have concentrated our attention on dairy produce and frozen meat in the belief that the United Kingdom would take all we could produce at reasonably good prices. There is no doubt that up to a year or tw'o ago Britain was a dependable market for us, but the war caused a disastrous disturbance. In the immediate post war period prices were fantastically high, and w’e made the mistake of supposing that these high prices would last, and there followed greatly increased production to take advantage of these high prices, producers thus cutting their own throats. Unfortunately we were not the only suppliers of dairy produce and meat to the British markets. Other countries were also sellers. They, too, increased their production, and thus the Britihh market has reached the saturation point. It is just common fairness to say that had there been no world wide economic depression the increased production would have gone into consumption, not at the fantastic high prices, but at a long way better prices than are now current. It is, however, no use dwelling on what might have been, the fact remains that there is a market glut and prices are disastrously low, which fully warrant the opinion expressed by Mr D. O. Williams. There is no doubt that farming is undergoing a change. Values of farm lands are being adjusted to conform to the present prices of produce, and in many districts new crops are being produced. In the Nelson district, where the depression is said to sit very lightly on the farmers, tobacco growing has been added to their farm-crops so that what they lose on the swings they make up on the roundabouts. Many years ago New Zealand farmers had to change their system of farming. Before the slump of 1891-95 the main exports from the Dominion were wool and wheat, flax was a good third and kauri gum was a factor. After that depression wheat growing steadily declined, and wool, though still an important export item, is more or less a by-pro-duct of the meat freezing industry. A change of farming methods followed after that depression—a change must come now. A very strong effort must be made to broaden our markets, but that will necessitate diversification of production, and how the latter is to be achieved is the pressling problem. It is a difficult one but not beyond solution. In this district the way points naturally to citrus fruit growing, and force of circumstances will no doubt accomplish what no amount of pleading or persuasion has been able to do —to bring about a quickened interest in what shiuld prove the district’s finest industry.