PRODUCTION AND EXPORTS

Dominion, Volume 34, Issue 119, 13 February 1941, Page 6

PRODUCTION AND EXPORTS

Trade returns covering the calendar year do not provide the best basis for comparisons. They cover portions of two producing seasons, and the division may be important. But they afford a useful indication of how the overseas trade of the Dominion is developing. The figures for 1940 are most satisfactory. Export values reached a new record level at £73,741,000, an increase of no less than £15,692,000 over the total for the preceding year, and, with imports almost stationary at £49,000,000, the favourable trade balance was nearly £24,750,000, as against only £8,665,000 in 1939. Further information is required to reveal precisely to what extent the increase in exports was due (a) to enhanced prices, and (b) to quantity production. The figures, however, reflect clearly the splendid conditions that prevailed during the winter and spring last year. The production year, which commences on July 1, is the most satisfactory basis for comparisons, for it covers a complete producing season. In the first half of the 1940-41 production year exports increased by nearly £8,000.000, and the Dominion was only moving toward’ its export peak during that period. With exports from July to. Decembei, inclusive, totalling £29,110,000, it was practically certain that the Dominion would have established new records during the current production year had not the drastic limitation of shipping affected the expdrt position. A new high production level may be reached, but, even so, it will not show accurately the exportable surplus of the Dominion. Whatever basis of comparison is taken one thing is clear, namely, the splendid response of the primary producers to the call for increased production. Even if the whole of the increase in the value of the exports, £15,692,000, were attributable to higher prices, the results would still stand to the credit of the men on the land. They have been short of skilled labour throughout, and each month has seen young men leave the farms to serve with the forces. It has been extremely difficult for many farmers to carry on, but they have made a magnificent effort, realizing that the production of foodstuffs and raw materials constituted their best contribution to the war effort. The trade figures reflect the extent to which they have succeeded, with exports at a record height, and, given the shipping required, likely to go even higher this year. In the light of all his difficulties, this result will stand to the greatest credit of the New Zealand farmer.