GREATER MEAT PRODUCTION

Press, Volume XC, Issue 27368, 5 June 1954, Page 5

GREATER MEAT PRODUCTION

United Kingdom’s Objectives

GOVERNMENT’S NEW POLICY

Agriculture in the United Kingdom is still to be guaranteed reasonable support and stability by the United Kingdom Government, but the new policy announced in March calls for an effort to reduce costs by increased efficiency. Some alteration in the emphasis on production of certain commodities is envisaged, and these may have their effect on New Zealand farming economy. The most important are an encouragement of bigger production of beef and mutton, and a stabilisation of pig meat production at about its present level. Further increases in milk production are not wanted. A summary of the White Paper on agriculture, issued in March, has been made available by the office of the United Kingdom High Commissioner in Wellington. The summary shows that British agriculture, which has as its objective a 60 per cent, increase in production over pre-war figures, last year recorded a 56 per cent, increase in crop yields. Yields were a record after a good season. The figure for beef was not as good as was expected. For the first time for many years, costs of production moved downward last year. Wages rose, but many items in costs, principally the cost of feeding stuffs, were lower. The guaranteed prices under which British farmers work are retained, but the level is generally lower, except in the case of such products as meat and wool, for which tne old level is maintained as an encouragement to more production. In future home agriculture cannot be asked to produce a given amount of a particular commodity irrespective of cost, the summary says. This would unduly strain . the national economy and handicap the competitive power of our exports in world markets. Expansion of nfet output to 60 per cent, above pre-war is still a major objective.. The Government does not think that it is either practicable or desirable to set individual targets in free market conditions. But the White Paper indicates generally the directions in which the Government considers it desirable for production to develop for the time being. Ley Farming

This guidance includes the continued encouragement of ley farming; the maintenance of a large tillage acreage; more beef; more sheep, il accompanied by reduced costs; stabilisation of pig production with overriding importance now attached to improvement in quality and substantial reduction in costs, on which further expansion must depend; some reduction in the dairy herd to offset increases in yields per cow, and so stabilise sales off farms rather below the present level; there is growing difficulty in finding remunerative outlets for substantial supplies of manufacturing milk, while liquid consumption has been declining; maintenance or expansion of egg production must depend upon a firmer market or’ reduction in average costs; sufficient potatoes to meet demand; and enough sugar beet to fill the factories. Although it is not now likely that the 60 per cent, objective can be achieved in 1955-56, since bfeef production and tillage are increasing more slowly than expected, it should be reached two or three years after that. Further expansion beyond 60 per cent, must depend on reducing costs and improving quality. The Government looks to achievement of the 60 per cent, over pre-war objective by increasing net output by:— (I) more beef and perhaps more mutton and lamb; (II) continued steady improvement in crop yields; (III) saving feed imports by—(a) ley farming, improved management and use of grass, and (b) skill and economy in the use of Concentrated feedingStuffs. The better and greater use of grass and proper feeding are more important than ever. A 10 per cent, saving in feed is equal to at least 1,000,000 tons of imports. Reducing Costs

The industry has steadily increased its efficiency through better techniques and more skilful management. A primary objective now must be to increase efficiency still further and more rapidly by raising quality and reducing costs, and by improved management and skilful marketing. Agriculture will continue to receive Excnequer support necessary for farther development with stability and confidence in the future. Producers will be protected against sharp fluctuations in pi ices to allow them time to djust their farming policy. But the cost to the taxpayer .of the support given to British agriculture is very high—of the order of £200,000,000. Progressive improvement in efficiency will provide a basis for steady reduction in V.he cost to the Exchequer. This is in the industry's own long term interests as well as the nation’s. •

It is not possible to forecast the effect of changes precisely. But, while net income may be somewhat lower than at present, the Government is satisfied that the guarantees assure the industry a satisfactory level of income in accordance with the terms of the 1947 act. If the industry is to maintain net income it will have to increase the rate of reduction in costs as well as get the best out of the market; and so continue prosperity with a diminishing rate of Exchequer assistance.