Fewer Chances For Making A Profit

Press, Volume CI, Issue 29892, 4 August 1962, Page 6

Fewer Chances For Making A Profit

With fewer and fewer profitable avenues of production available to farmers, said Mr H. E. Garrett, reader in farm management at Lincoln College, at the annual meeting of the Lauriston Farm Improvement Club this week, ways and means had to be found of producing more with less effort and therefore at less cost. Where a farmer had. for instance, been used to running 1000 ewes be would have to get used to running 1500. Whereas last time there was a drought potatoes had subsequently been selling at £5O a ton, now, after a drought which he bad been told had been one of the worst in memory, potatoes were only selling for £2O a ton, said Mr Garrett. The reasons for this included farmers increasing their efficiency, using new improved varieties, more early production, and more production in the North Island. At present to make money people would grow wheat, said Mr Garrett, but in 15 months’ time there might be a bottleneck with wheat

There might be a little difficulty disposing of the crop next year, but in the harvest after next there could be a problem- of transportation to the North Island, and if the quality of the product was not up to the required standard there would be objections and demands for Australian and Canadian wheats The closing of opportunities for profitable- wheat production would be one of the last of these items to go, he sa.td In these circumstances the aim had to be to fins not only means of increasing production but means of lowering costs of production and increasing output so that 25 per cent, more could be produced for 85 per cent, of the effort Farmers who were now making much better than a 5 per cent, return on capital could count themselves fortunate, said Mr Garrett, when many fanners, and in particular those who were not cropping were now failing to make 5 per cent. They could also count themselves lucky if they were making more than in the previous year, tor the great majority were making lew.