Arable sector counts its strengths

Press, 13 April 1984, Page 27

Arable sector counts its strengths

New Zealand’s arable industry probably still suffered from an inferority complex, the Dominion president of Federated Farmers, Mr Rob Storey, said at a seminar in Wellington last week. Mr Storey’s comments in summing up a day-long seminar on the arable industry drew a swift riposte from a senior Federated Farmers Agriculture section member, Mr Graham Robertson, who jested that Mr Storey was the “acting past president.” Mr Storey has been selected as the National Party candidate for the seat of Waikato in the general election later this year and he has received many calls to resign as president of Federated Farmers.

The inferiority complex arose out of a protected past, said Mr Storey, and only now was the industry emerging into the world of real competition. If the wheat industry could sort out its present philosophical arguments it might become a model for other crops, he said. The arable industry, it had been suggested at the seminar, needed a growth strategy, which had been something Mr Storey had suggested for the whole of agriculture nearly two years ago.

“I am pleased to see the M.A.F. come along (to discussions about growth strategies) in the end,” he said.

Mr Storey was, however,

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generally complimentary about the seminar as a whole, saying that it had been a worth while exercise. The seminar was called “Arable exports, a growth industry” and was organised by the Agriculture section of Federated Farmers and chaired by the chairman of that section, Mr David Ritchie.

It was very popular with representatives from agricultural merchants and agents, grain exporters, flour millers, banks, financial institutions, Government departments, politicians and journalists. But perhaps Mr Storey’s impressions of an inferiority complex were reinforced by the style of the first and key-note speaker, Mr Roger Lough, senior research economist and senior rugby team coach at Lincoln College.

A later speaker commented that Mr address was somewhat longer than a half-time peptalk, but no less forceful.

“For too long the arable sector has struggled along on the coat tails of its bigger and more influential neighbours in the pastoral sector,” Mr Lough said.

The arable sector should portray its identity and take an initiative to contribute significantly to the economy without massive subsidies.

All the sector required was to be treated fairly and

HUGH STRINGLEMAN

not be discriminated against by the Government and its policies.

“Any sector of the economy which can generate net foreign exchange and create employment opportunities must be worthy of consideration by policy makers, although one may wonder when one looks at the comments of the Wheat Review Committee,” said Mr Lough. His was to be the first of many arrows fired at the recommendations of the review committee during the day.

Mr Lough maintained that it was clear from the results of research carried out for the Agriculture section by the Agricultural Economics Research Unit of Lincoln College that arable enterprises generated more foreign exchange than a self-contained pastoral unit on arable soils. The extra was between one and a half and three times more. Some 2.44 million ha of New Zealand soils were considered to be of high actual or potential value for the production of food. The actual area under food cereal and small seeds production was only 13.5 per cent of «.is 2.44 million ha.

“The D.S.LR., in its report ‘Land Alone Endures’ concludes that the present level of cropping land could be doubled within the soils of ‘high actual value for food production’ category and

still occupy less than one third of the soils within this category. “It is further concluded that this would have little or no effect on animal production from dairy land.” An intensively cropped property employed about twice the labour units per 100 ha of the chiefly pastoral farm.

“The expansion of the arable sector would significantly increase foreign earnings, it would increase rural employment opportunities both on and off the farm and while a significant user of scarce energy resources it is no more or less efficient than alternative uses of arable soils. “What therefore is required to double crop production in New Zealand? “To the arable farmer the answer is simple. Merely to be treated as equals.”

The arable sector should ensure that ex-farm gate returns to producers reflected the ability of the respective enterprises to generate net foreign exchange earnings. Efficient grain handling port facilities should be established so that stevedoring facilities in New Zealand were competitive. The input into research should be such as to ensure that more alternative crops were available to increase the production base and that the one per cent compound rate of growth in crop yields achieved in the United Kingdom could be repeated in New Zealand.

“Equality must also stretch to the recognition bypolicy makers that plant and machinery to the arable farmer is the equivalent of fertiliser to the hill country farmer. “Fertiliser attracts subsidies and concessional financing through the Rural Bank; plant and machinery attracts scorn and scepticism.

“The small seed industry, where New Zealand once commanded international respect, now has become a seller of last resort. It must attract the promotional and research dollar such that its former position is restored,” said Mr Lough. Mr Lough said the arable industry was not asking for more money, but to be treated as a sector able to compete favourably with both the pastoral and dairy sectors. “All arable producers are asking for is an equitable share of the available resources,” he said.

In conclusion, Mr Lough said shifting a further 12.3 per cent of New Zealand’s top arable land out of livestock production into arable farming would earn an additional $lOO million worth of foreign exchange, and create 1500 additional onfarm job opportunities.

Later in the seminar, Mr Bob Mather, marketing manager of Wrightson NMA’s grain and seed division, said that New Zealand seed producers and exporters must develop and accept a proprietary marketing ap-

proach to all future varieties.

It was probably too late to bring varieties currently in the marketplace into such a system. "Proprietary marketing would remove much of the commodity pressure which presently' influences the values obtained for our seed,” he said. "It would allow varieties to be positioned in a market place so that they compete on equal terms with alternatives.

"In proprietary marketing all sectors of the industryhave a vital interest and investment in the ultimate success of the variety."

Hand in hand with marketing was the presentation of New Zealand seed, Mr Mather said. He said sectors of the industry were already joining together to upgrade the image of export seed.

Seed was a most unattractive commodity to package, but this group believed overseas buyers would react favourably to the standardisation and improvement in packaging that would be offered.

New Zealand's seed exports last year were valued at $21.6 million, of which over 75 per cent ($15.2 million) was derived from white clover exports.