Increased Farm Output Reviewed By Mr Holland

Press, Volume XC, Issue 27366, 3 June 1954, Page 12

Increased Farm Output Reviewed By Mr Holland

(New Zealand Press Association) t

DUNEDIN, June 2. New Zealand production had increased by 400 per cent, in the last 50 years, although the acreage under cultivation had increased little, said the Prime Minister (Mr Holland) when praising the New Zealand pioneers and farmers at the opening today of the annual conference of Otago Federated Farmers. Science had played an important part in the development, the Prime Minister said, and he likened the farmer to an amateur scientist, because the farmer was always experimenting to keep New Zealand farming healthy and productive. “And we have not reached the end of this increased production yet,” Mr Holland said. Since 1949 2,500,000 more sheep were being carried, besides more cattle and milking cows. In 1949 private enterprise had topdressed 50,000 acres from the air, but this year 2,000,000 acres would be topdressed from the air.

If New Zealand had to depend wholly on its own production without any assistance from outside sources, the standard of living would be among the lowest in the world instead of the highest, he said. New Zealand maintained this state only because of its exportable surplus of produce. Farming products gave New Zealand an importing capacity of £240,000,000, and he emphasised that it was necessary for everyone to remember that unless New Zealand could keep grass growing on its farms it would have it growing in tjje streets of the cities.

Murupara Project The newsprint project was of immeasurable importance to the economy of New. Zealand, Mr Holland said. At the same time next year it would be producing 70,000 tons of newsprint, there would be 40,000 tons of timber pulp for export, and 70,000,000 board feet of timber available.

Besides ensuring a huge dollar saving the works would provide sterling currency through exports of timber. There would be a saving of 16,000,000 dollars in newsprint imports alone. If New Zealand was to have a greater population there would have to be greater, production, Mr Holland said. New Zealand "was having prosperous times, and it was necessary to keep them prosperous by remembering always the need for a low cost structure. Four years ago wages in Australia and New Zealand had been about the same for the same type of work, but wages in Australia now were about £2 15s a week higher. “Which country do you think will be in the better position to meet any downward trend?” he asked. There was no doubt that New Zealand would be better protected. The world was full of the wrecks of people and industries that had not seen the writing on the wall, he said when discussing the competition that margarine was likely to give butter. It was necessary for care that New Zealand did not price itself off the market, and equally necessary that it study carefully the trading conditions of other countries.

U.S. Production Policy United States production policy had caused the Government concern, and a protest had been lodged against America’s off-loading of accumulated stocks. The United States had been producing butter and cheese without regard for the capacity of the world to take it. At Inarch 31, 1954, the United States surplus of butter was 358,000,0001 b, its cheese surplus was 489,000,0001 b, compared with New Zealand’s production of 227,000,0001 b, and its skimmed milk surplus was

599,000,0001 b. compared with the New Zealand production of 162,000.0001 b. These figures assumed a more ominous importance when it was realised that the United state intended to put on the market from its surplus 40 per cent, of the world’s total consumption of butter, and 50 per cent, of its total consumption of cheese. The American system did create a threat to “New Zealand’s economy, and he urged the farmers to ertdeavour to keep costs down.