CANTERBURY’S SHEEP AND CROPS

Press, Volume XCIV, Issue 28158, 22 December 1956, Page 14

CANTERBURY’S SHEEP AND CROPS

The “apparent negative attitude of the Government towards wheatgrowing” during the last 10 years is criticised in a statement by the North Canterbury provincial district of Federated Farmers in a supplied statement. “The direct result has been that New Zealand has grown less wheat and more has had to be imported each year,” says the statement. “Only 73.000 acres were sown last year, the lowest since 1869. and it is believed that no greater area is sown this year. Last year importations totalled 8,900.000 bushels and cost £N.Z.6.000.000 landed. We feel, therefore that the general public should be told the following facts about this declining acreage sown to wheat. “For the 10-year period 1946-55 inclusive. New Zealand growers produced 52.664.000 bushels of wheat and were na>d an average nrice of 9s o£d a bushel, f.0.b.. which was 22d a bushel less than the average cost of Australian wheat, f.o.b. Australian ports. “Had the Government given a similar price to New Zealand wheatgrowers as it gave to overseas sellers, it would have been a strong incentive to have the whole of the 113.000.000 bushels of wheat used during that period grown in Nev/ Zealand, and

would thus have saved £33,000,000 of overseas exchange.

Transport Costs “The transport from Australian ports cost another £5.000,000 in the last 10 years, and. at the present time, we understand freight on wheat from Australia costs about £1,000.000 a year. As far as we can ascertain, during the 1950-54 period, New Zealand wheatgrowers received the lowest prices in the world, while the costs of their equipment and fuel were among the highest in the world. “The policy of stabilisation applied to wheat prices was drawn up with the cost of bread, and the protection of the New Zealand consumers’ standard of living in view, but there is no doubt in the executive’s mind that controlled prices for wheat in the last 10 vears have been the biggest single factor causing the heavy fall in acreage. “It is said that if farmers do not grow wheat, farm production will be offset by carrying three more ewes to each acre diverted to grass. In the first instance the value of production from three ewes is less than production from one average acre of wheat; second, the executive is not convinced that this extra stock-carrying capacity takes place and would like to see

the evidence on this point. Grain Acreage and Meat Output “The accompanying graph shows that, in spite of the falls in both the oat and wheat acreage in Canterbury in the years 1944-48, the rise in ewe numbers in the province follows much the same pattern as the Dominion figure. Members of the executive are of the opinion that extra stock carried on farms with reduced cropping programmes is far less than often claimed, and members feel that an increase of 100,000 acres to a total of 175,000 acres, could be made in the New Zealand wheat acreage without substantial loss in sheep numbers.

“Three points need to be emphasised: “(1) Stabilisation policy has depressed the wheat acreage to less than a quarter of the country’s needs and committed the country to costly annual importations.

“(2) Returns from land diverted from wheat to grass do not appear nearly to offset the high cost of importations.

“(3) The bread subsidy of about £3.000,000 a year. Because the real cost is masked in this way, the executive feels that the cheap New Zealand loaf of bread is costing a good deal more than many consumers realise.”