COST STRUCTURE IN FARMING

Press, Volume XCIII, Issue 27990, 9 June 1956, Page 12

COST STRUCTURE IN FARMING

CO OPERATION WITH INDUSTRY

PRESIDENT’S REPORT TO FEDERATION

Farmers should be consulted when freezing works, dairy factories, and the other industries which handled their produce intended making concessions which were likely to add to the price on the overseas market and so alter the cost structure of the industry, said the president (Mr D. H. Butcher), in his report to the provincial conference of the North Canterbury district of Federated Farmers yesterday. “More than 80 per cent, of the goods we import into this country has to be paid for by the farm products that we export; the main ones being meat, wool, and dairy products,” said Mr Butcher. “Our principal market is England. We are facing increasing competition on a falling world market, and we would point out to the various processing firms and ‘industries yvho assist in handling our products the importance of the cost structure. Every concession that is made by them or us adds to the cost, and places us at a disadvantage on the world market, and is reflected in the whole economy of the country through overseas funds,” he said. “We feel that we as farmers should be consulted whenever such matters are being considered.” Referring to taxation, Mr Butcher said: “We still feel that capital livestock taxation is an injustice, and see no reason why this should not be put right.” Another aspect of taxation concerned many farmers in the high taxation group, said Mr Butcher. Many of them felt it was not worth making more money out of their farms to carry out capital improvement—with the extra work and worry involved —if it Was only to be taken away by still higher taxation. “It has a bad psychological effect on production, and there is a position here which needs watching,” said Mr Butcher. Wheat Production Government action was also needed to encourage wheatgrowing, he said. “Canterbury and other parts of New Zealand are eminently suited to the production of wheat and other crops. It seems absurd to spend valuable overseas funds to import goods which can be just as easily produced here, and when the overseas exchange could be better used on essential material which we cannot produce, such as iron, steel, rubber, and industrial machinery.

“If the Government were to pay the farmer half as much again for his wheat as at present, it would get a great deal back in taxation, and still have the exchange available,” he said. “If something is not done to correct the position, the public may have to go without bread, and it will be the Government and not the farmers who are to blame.”

New Zealand had the highest farm production a head in the world, he said, but in the future the farmers should think of production in terms of acreage rather than population. Several factors, however, were retarding an increase in the Dominion’s farm production. “Christchurch is a growing city, and will continue to expand whether we like it or not, and a lot of good land has been taken for building purposes,” Mr Butcher said. “Provided that the land is not cut into too small an area the production from private gardens will still equal the original commercial production.” There was plenty of poor, shinglebottom country that was more suitable for factories and heavy industries, and he believed that it was the duty of the federation to protest against any further encroachment being made on fertile land for those purposes, said Mr Butcher. Fertile land was also being taken lor racing establishments, and this was giving farmers some concern. “The citizens of Christchurch should say whether they want food and overseas funds, or racehorses. They cannot have it both ways,” he said. “Pledges Not Honoured”

The lack of electric power was also causing grave concern. The Dominion’s whole economy depended on sufficient electricity for heat and power, and successive governments had failed to honour their pledges.

“In this respect the present Government is no better than its predecessors,” said Mr Eutcher, “and we, with other sections of the community, feel that 'it is high time that the matter was rectified.”

In a review of farming progress in Canterbury." Mr Butcher noted the “rapid strides” being made in the control of pests and weeds by chemical sprays and powders.

As long as present prices remained constant, aerial topdressing would continue to play an ever-increasing part in raising the production of meat and wool on hill country. Veterinary research workers now claimed to be able, with artificial insemination and hormones, to produce multiple crops of lambs or extra wool at any time of the year they were required.

“All these changes have taken place within the last 100 years, and it appears that farming in the future will be a highly technical business.” said Mr Butcher. “Those who come after us will need to avail themselves of the many opportunities that they are offered at our various schools and colleges.” (