Farm production boost ‘urgent’

Press, Volume CXIV, Issue 33520, 29 April 1974, Page 2

Farm production boost ‘urgent’

A crash programme to increase stock numbers on New Zealand farms cannot be delayed, according to Mr I. F. McFarlane, marketing manager of the fertiliser division of Kempthorne Prosser and Company, Ltd.

“Unless urgent priority is again given to expanding agricultural production the standard of living of the whole population must suffer,” he says.

"Whether we like it or not, the hard, cold facts are that in spite of manufacturing industries doubling production in recent years, agriculture continues to provide by far the major part of our overseas earnings. In the last four years agriculture’s percentage of total export receipts have been 87.2 per cent, 86, 85.1 and 86.8.

"While agricultural exports produced slsBom. export receipts from manufacturing totalled only $154.3m in the year to February this year.

“The increase in payments for imports last year was $403.8m, and with the main increases for oil, fertilisers, shipping, and other commodities still to come, manufactured export receipts, at sls4m, are totally inadequate to finance increased import costs.

“For the foreseeable future, only agriculture has the potential to generate sufficient overseas funds to pay for the increased cost of imports. "In 1962 the National Development Conference determined that while there was a need to develop manufacturing, tourism and forestry and to become less dependant on fanning, agriculture would continue to supply the bulk of the funds necessary to finance imports. "Based on 1960 costs and prices, an annual 4 per cent compound increase in farm stock numbers was considered necessary to maintain the living standards of all New Zealanders. “But this target has not been reached. Instead of reaching Him ewe equivalents by mid-1973 the figure will be only about 100 m by mid-1974. Sneep numbers are the lowest since 1967. “If a 4 per cent annual increase in stock numbers was essential to maintain living standards in 1962, how mucn more vital it is at tolay’s rate of inflation.

“By abandoning the targets set in 1962 and failing to increase stock numbers while costs were low. New Zealand has not been able to capitalise on recent higher world prices for agricultural produce, because there has been insufficient produce to sell. “Had the targets for stock increases been attained the extra export income obtained during the recent higher world prices for agricultural produce would have financed the whole of the expected increased costs of oil and other imports. “While failure to increase stock numbers at the 4 per cent rate considered necessary to maintain living standards has been a costly exercise, it is not too late to again give agriculture the incentives to stimulate production. I “With oil predicted to cost

an additional s2oom annually, fertiliser raw materials 50 per cent more, and freights and other costs skyrocketing, a crash programme to increase the stock numbers cannot be delayed. “Agriculture must again be given recognition in proportion to its national importance. New Zealand can no longer ignore the fact that agriculture continues to provide over 85 per cent of the overseas earnings on which the standard of living of all New Zealanders depends."