FARM PRODUCTION

Evening Star, Issue 21719, 14 May 1934, Page 10

FARM PRODUCTION

POSITION IN NEW ZEALAND PRICES FALL LOWER THAN COSTS An interesting survey of the farming industry in New Zealand is contained in a circular to shareholders from Sir William Hunt, chairman of directors of Wright, Stephenson, and Co. Ltd. He states; • “A year ago, when sending you our accounts for the year ended March 31, 1933, we pointed out that our accounts reflected the cumulative effect of the continued fall lor four successive seasons in the price level of farm product®. We pointed out, too, the manner in which pur company and its farmer clients would benefit by a moderate rise in the price level of farm products. , ' ' “ Since then the price level of sheep products has improved considerably, but dairy products show a lower average price level for the year than for the previous one. The largest proportion of our advances are with sheep farmers, and. the improved position of our sheep farmer clients is reflected in our accounts, which show a net profit for the year of £41,354 5s 6d. “ Last year left us six months in arrears with our preference dividend, and nothing to carry forward in our profit and loss account. We now propose to clear up the preference share position, which means we are paying out of this year’s’profits eighteen months’ dividend on our preference shares. We propose, tod, to pay a small dividend of 3 per cent.,on our ordinary shares, and carry forward to. next year’s accounts the sum -of £13,609 fte 6d. This carry forward is father more than tone year’s dividend on our preference shares. • “ While the improved condition of sheep farmers is very gratifying, it is a mistake to assume that all our farmers’ difficulties are at an end. Sheep farmers growing fine wool have had a good year; rbut growers of the stronger cross-breds, which form the bulk of the New Zealand clip, are still getting prices which are low when compared with', pre-slump years. Dairy farmers are still having a most .difficult time. It is the average condition of all our farmers that counts, and not the. special position of selected cases. This average/ctondition cannot be shown better than by. quoting the export price level of farm products published by, the New Zealand Government Statistician. The average , level for the fifteen years 1915-29, inclusive, was 1492. The average level in March last was 996. Farmers’ costs have not come down in anything like the same proportion. “ You will notice we have given more details in our balance-sheet than formmerly. Our sundry creditors are split up' amongst the various , classes of customers, arid our properties,-machinery, plant, office furniture, and motor cars show original cost and depreciating written off. Our sundry debtors are divided into advance accounts and trade accounts—that is, accounts due for payment upon ordinary trade terms.”