Sheep Industry Review

Press, Volume CX, Issue 32393, 4 September 1970, Page 8

Sheep Industry Review

In general, the high-production-per-acre farms are those with a good performance per animal unit also, and the most important factor in pastoral farming is good livestock husbandry, states the “Annual Review of the Sheep Industry.”

The review, which has been compiled by the Meat and Wool Boards’ economic service, covers a number of topics which have been uppermost in the thoughts of farmers during the past year industrial disputes, drought conditions, the United Kingdom - E.E.C. negotiations, and the costprice situation of the industry generally. An interesting aspect of the review is a suggestion that stock performance could stand improvement, rather than that stock units should be increased. It notes that “the most usual and effective measures used by farmers to counter rising expenditure and price movement has been to increase production. “Production increases, however, can take several forms and do not necessarily mean greater numbers of sheep and cattle. There is still considerable scope to increase animal efficiency. An efficient animal, well serviced, is the

best economist in the farming industry.” In discussing price movements, the review states that the prices of essential items in sheep farming rose by 3 per cent between January, 1969, and January, 1970. Major items in this 3 per cent movement were: Wages and rations which accounted for three-tenths of the over-all change; fertiliser, lime and seeds, just over two-tenths, almost all of it attributable to higher prices for seeds; repairs and maintenance, slightly more than onetenth, the result of an increase in fencing materials, roofing iron and timber: depreciation, one - tenth, caused mainly by higher prices for farm vehicles and building costs. Farm requisites showed a decrease (6.1 per cent) following the 421 per cent subsidy on weedicides and pesticides. All classes of farms felt the impact of higher prices, states the review, the largest rise being recorded in the South Island high country

where the labour cost was relatively greater. This effect was also reflected, but to a lesser extent, in the North Island hill country and the South Island foothills. Over the last seven years, the cumulative effect of rising prices has been to raise sheep farmers’ costs, on average, by 20.9 per cent. Total expenditure, relative to gross return, in the last 10 years has increased from 60 to 65 per cent to about 70 per cent. While some of this increase has been a result of “more sophisticated” techniques in farming, it has been added to by the continuing upward movement in prices for items used on sheep farms, adds the review.