Farmers’ Attitude To Fertiliser Works

Press, Volume CIV, Issue 30814, 28 July 1965, Page 14

Farmers’ Attitude To Fertiliser Works

An explanation of the attitude of South Canterbury Federated Farmers to the proposal to establish a co-operative fertiliser works in South Canterbury has been given by the provincial president (Mr S. J. Lister). He was commenting on references made by the Minister of Agriculture (Mr Taiboys) in Dunedin last week to Federated Farmers’ surveys which had shown that the establishment of a fertiliser works costing £l.sm or more in South Canterbury would not be justified. Mr Talboys’s remarks were published in “The Press.”

Mr Lister said that the last survey had been made after suggestions about the establishment of a cooperative fertiliser works at Timaru in the latter part of last year.

The fertiliser committee of South Canterbury Federated Farmers had then discussed the practicability of establishing a farmers’ fertiliser works, the competition from existing works, the usage of fertiliser in the districts which would be serviced from Timaru and the capital required for such a project and the possibility of a loan being obtained from the Meat Board. Inquiries had been made of the head office of Federated Farmers as to the terms under which any loan for this purpose would be obtained, and this request had been referred to the Meat Board. The Meat Board’s reply had indicated that the board had no firm policy on the avail-

ability of funds to assist in the establishment of undertakings through the meat industry reserve account. Each case was considered on its merits. One certain factor was that Government approval would be necessary in all cases and the Government had lately insisted that interest rates should be at least equivalent to bestcustomer overdraft rates. Repayment terms would be a matter for negotiation and it could be expected that 40 per cent of the total cost of the undertaking should be subscribed by producers.

On their estimation of about £l.sni to £2m as the cost of a fertiliser works, the fanners’ contribution would have been at least £700,000. After consideration of these questions the committee had drawn up paints for a report to the executive which recommended that they should be referred to branches for consideration and an expression of opinion. The next meeting of the executive had carried a resolution saying that while agreeing in principle with the desirability of establishing a cooperatve works in South Canterbury, it was recommended, in view of the replies from the majority of branches, that it would not be practicable at the present time and that no action be taken. Raised Again When the question had been raised again after the recent formation of the South Island Fertiliser Company, it was learned that more favourable terms could be obtained for a loan from the meat industry reserve account. The executive, which had traditionally been in favour of a co-operative-owned works, had then decided to support

this venture. Repeated representations had been made to the Government to allow farmers to have the opportunity to show their support for this venture and now this had been granted. While in the past support from Federated Farmers had been in principle, support would now be required in fact by Arm undertakings. With the knowledge that the Dominion Fertiliser Company was continuing its plans to erect a fertiliser works in South Canterbury, the individual contributing farmer, on whom the responsibility of financing the co-operative works would rest was entitled to have all the facts before he made his decision, said Mr Lister.