AGRICULTURE IN AUSTRALIA

Press, Volume LXXVI, Issue 23085, 30 July 1940, Page 8

AGRICULTURE IN AUSTRALIA

—♦— PROBLEMS CREATED BY WAR LOSS OF MOST MARKETS IN EUROPE Cfbom otra own correspondent.) SYDNEY. July 20. Faced with the loss of markets in Norway, Denmark, Holland, Belgium, and France, all now controlled by Germany, and in Italy, Australian agriculture faces a pinch. Even the fact that Australia now becomes a principal food and raw material source for Britain and is guaranteed markets for most of her farm products, does not totally dispel the clouds, since shipping difficulties reduce the value of the assured British market. • Wheat is the outstanding example of this problem. With a 1939-40 harvest of. 215,000.000 bushels, and an exportable surplus of 195,000,000 bushels, sales have totalled 115.000.000 bushels, but 82.000,000 bushels of that sold wheat remain to be shipped, including most of the 55,000,000 bushels bought by Britain. With seven months of the export season gone. Australia faces a serious problem in the storage of the unshipped and unsold wheat. Good yields are expected in all the wheat-producing states for the crop to be harvested next November, and when this begins to flood into storage centres, worried officials will be scratching their heads in puzzling- out how to dispose of it. This position was foreseen too late, for when .the Federal Government issued in May a warning to wheatgrowers to restrict their acreages, most of the season’s sowings had been completed, and since then the overseas position has deteriorated. The Government will probably compel a considerable cutting of wheat for hay, and is exploring other means to avoid congestion. Butter Difficulties Butter is another farm product which is going to cause worry here. in. spite of the loss by Britain of supplies from Denmark and other Scandinavian countries. The trade here has received advice of cool storage in Britain full of butter, of people not needing their full ration, of the inroads made in butr ter consumption by margarine. Butter.' as with wheat and wool, is marketed under agreement with the British Government, but the question arises of how long it will be necessary for Britain to continue the agreement. Export of fresh fruit ceased on the outbreak of war. and governmental authorities are faced with the almost hopeless task of trying to dispose of orchard crops in Australia. Dried and canned fruits are ip a better position, sihce Britain is taking huge quantities of these, but countries now under German control, as well as Germany herself, and Italy, were customers for these lines. Meat seems to be favourably placed. Cargoes have gone to Britain regularly, and there is little possibility of Australian supplies not being needed and shipped overseas. Wool, as a war essential, cheers the heart of Australia. The record 3,600.000 bales clip for the 1939-40 season, ended June 30. has been completely cleared under the vital agreement with the British Government which bought it at an average price of 13.4375 pence, per lb, and is responsible for the sale of surplus above her own needs to neutral countries. As a result of that agreement, Australia is Angering a £64,700,000 cheque in its pocket, an advance of about £20.000.000 on what it received for the 1938-39 clip. Pessimism of Woolgrowers On Australia, more than all other countries put together, Britain depends for the wool that is almost as necessary for it as munitions for the effective prosecution of the war. Woolgrowers conceive it as a duty to the British Empire, as well as to themselves, to go on producing to the maximum of their capacity, and not to permit their work to be hindered by problematical happenings in a future about which they know nothing. There is some pessimism about the ultimate future of wool as the result of artificial fibres progressing during the period that wool is shut out of Germany, Italy, and the conquered countries, especially Belgium and Holland, formerly large consumers of Australian wobL But this pessimism is overwhelmed by the majority opinion that “wool will come out all right in the wash." The Australian Agricultural Council has considered plans for the reorganisation of Australia’s farm production to render greatest aid to Britain and to safeguard Australian interests as a result of the loss of European markets.. Commenting on the need for such plans, Mr Archie G. Cameron, Minister for Commerce, said: “Grave probr lems for Australian farmers are involved in the fast-moving events in Europe. The Commerce Department is doing some very serious thinking over them." The council decided on an immediate survey of the war’s effect on Austra- ;! an . -ff rm Production. It estimated that the German occupation of western Europe closed markets formerly worth £30,000.000 a year to Australian farm industries. It appointed committees in each state to determine how production may be limited in industries which have been excluded from European markets and to ascertain new far existing industries can be expanded or new industries launched to produce commodities now imported or substitutes for such commodities. The states will try to prevent increases in production of the commodities for marw 11 * be . difficult to find export - and I ] lcrease Production of !£m of Which is now banned from non-sterhng countries, and flax which Britain badly needs. The Commonwealth will seek new markets in the UniSst a a n 4. elSeWhere ’ includin *