Farmers urged to boost stock ‘performance’

Press, 2 April 1979, Page 13

Farmers urged to boost stock ‘performance’

PA Wellington To make more money, farmers must increase the performance of their stock rather than carry more stock, said Mr N. W. Taylor, director of the Meat and Wool Board Economic Service. Mr Taylor told the board’s electoral committee that a low performance farm with a low stocking rate gave a net return of $44.60 per hectare, while one with a high stocking rate had a return of $59.70. A high-performance farm with a low stocking rate had a net return per hectare of $75.70, while a high stocking rale farm returned $114.60. These figures were based on a 1576-77 North Island hill country sheep farm survey, he said. Farmers had dropped behind in their share of the national income, said Mr Taylor. From 1958 to 1962 income was shared between salary and wages 56.9 per cent, companies 11.8 per cent and farming 13.5 per cent. Figures from 1978 showed income divided between salary and wages 71 per cent, other personal income 24.1 per cent, companies 11.3 per cent and farming 4.6 per cent. Mr Taylor said farmers were being asked to increase output to boost overseas earnings. Farmers had expanded strongly in the 1960 s but received little direct benefit, while other sectors in the economy improved their position. “The pastoral industry has, however, a hase of

some 100 M stock, not 89M as was the case in the early 19605. Thus it is undoubtedly going to be more difficult and more costly to increase stock numbers from this already high level of carrying capacity.” Farmers who still had the potential to lift stock performance should first look at this as the most economical way of lifting total output, before starting on an often costly programme involving further increases in stocking rates. “But farmers can only do so much. Beyond that it. is the economic environment generally within which the farming sector has to operate which is important,” Mr Taylor said. He said the Government had tried many’ forms of help for farmers but the results showed that the measures had been insufficient. A doctor would not keep on prescribing the same pill if the patient failed to respond. Mr Taylor said the total volume of the industry's output for the 1978-79 year was likely to be 2 per cent less than for 1971-72, and represented the third year of failing total production. New Zealand now had 6.5 M more sheep than in 1965 but was still producing the same amount of wool. The same thing applied in other sectors of farming. Increasing stock numbers nationally, if associated with lower stock performance, would do nothing for total agricultural production or farmers’ incomes.