The Evening Star TUESDAY, MAY 8, 1927. SUGAR BEET.

Evening Star, Issue 19546, 3 May 1927, Page 6

The Evening Star TUESDAY, MAY 8, 1927. SUGAR BEET.

In South Otago there is a movement on foot for starting tho sugar-beet industry. Those with even a slight acquaintance with farming are aware how production follows market prices on many average-sized farms. There is concentration on cropping when grain prices are attractive. When/this leads to over-supplied markets and less remunerative prices there may bo a change to fattening lambs; and in turn this may give place to dairying. It is an indication of the present condition of the farming industry in New Zealand that the same relief as 'aforetime is not afforded by this ringing of the changes. Simultaneously the prices obtainable for all the main lines of our production appear to be depressed below levels which farmers consider attractive. A new crop has been brought under notice, and the interest taken in its possibilities as outlined by Mr A. Reid, of Clifton, suggests that experiment on a commercial scale may bo made in South Otago. Tho land there has for very many years proved itself as very prolific of root crops, and sugar -beet has actually been tried on one farm at Stirling, the Government Agricultural Instructor, at whose suggestion the sowing was made, professing himself well satisfied with the result. That was some time ago, when evidently the pressure to add a fresh alternative in lines of production was less acute than now, for there the matter ended in the meantime, in spite of the bounty offered by the Government. This was a reward of £5,000 for the first fifty tons of sugar grown and manufactured in New Zealand It is now proposed to sound the Government to see if it has maintained interest in the possibility of starting this industry and to acquire all available information as to its conduct elsewhere.

At the second meeting at which this subject was discussed, at Balclutha, last week, there was one aspect mentioned which we are glad was not overlooked. Several men said that if tho industry was to be established in New Zealand it should be controlled by New Zealanders. The point is of more than casual moment in view of what has been noticed to be a feature of the British sugar-beet industry, started as an experiment in 1911, resorted to of necessity during the war, and now progressing rapidly under the stimulus of a Government subsidy until it is booming. A well-known writer on farming in Britain, in the course of an interesting sketch entitled ‘ Our Homegrown Sugar,’ states: “ There has been a curious gathering of the nations in English sugar-beet factories. Tlfe first was erected by Dutchmen; they have built two since then, are proceeding with a fourth, and are managing another. Americans, Canadians, Frenchmen, Hungarians, and Czecho-Slovaks are also managing or designing factories and training British workers, and there is a great deal of foreign money in the industry, though the biggest financier in the business is Lord. Weir. This situation is not altogether without its dangers, because the subsidy is diminishing more rapidly than the output per acre is increasing, and, while the present profits must ho very high, in future they will be liable to greater fluctuations. On this account wo may be quite sure that very many fully-equipped factories will be turned into limited liability companies, to which the farmer will receive a special invitation to subscribe, because it is not at all unlikely that when the subsidy goes the disinterested gentlemen from tho Continent will go with it, taking a sufficient quantity of Treasury notes to console them for their loss.” The Balclutha meeting decided to write to Lord Weir asking whether his company in Morayshire would establish a branch factory in New Zealand. There appears to he hesitation between the safer course, with possibly assured small profits remaining here, and the bolder course whereby the total risk cither way is held in this country.

That there would be some risk is probable. Sugar-beet growing in Britain has been made profitable because of the subsidy which for the first four years, ending seventeen mouths hence, is at the rate of over 2d per lb, declining gradually to nothing in 1934. No such subsidy could be expected here. Furthermore, a higher standard of farming is required for sugar beet than for other crops, and that necessitates extra labor. Farm labor in Britain is poorly paid compared with New Zealand rates. The beet factories employ men during the three months season at wages considerably higher than these same men receive as farm laborers. New Zealand’s experience of an industry parallel in many respects —the meat-freezing industry—together with the existence of the Arbitration Act in this country, points to the advisability of not under-estimating the labor costs and difficulties which must be faced. On the other hand, it is admitted that production in Britain is nothing near what it should be. The average yield thore is eight tons per acre, whereas in Germany, on much poorer land and with a harder climate, the average is thirteen and tons per acre. These figures sound small compared with some of the yields which the land in South Otago marked out as suitable for beet growing has produced in other root crops; but though big yields of beet may be obtained, its sugar content is what counts, and this has been proved a very variable quantity. Research is advisable before embarkation on any large scale.