BEET SUGAR.

Hawera Star, Volume XLVI, 2 June 1927, Page 9

BEET SUGAR.

OTAGO FARMERS KEEN

DESIRE TO ESTABLISH THE INDUSTRY.

(BY TELEGRAPH—PRESS ASSOCIATION.) DUNEDIN, May 31. A deputation of Clutha, settlers, accompanied by Messrs F. Waite, M.P., H. Campbell (president of the Chamber of Commerce), S. B. McDonald (Expansion League), and R. B. Tennant (Department of Agriculture), waited on the Hon. O. J. Hawken (Minister of Agriculture) this morning to place before him certain proposals for the institution of the sugar beet industry in the Clutha district.

Mr. Reid said the deputation wanted the Minister to support .a more intensive investigation into the growing of sugar beet. By all accounts the industry was going ahead rapidly in the United Kingdom. ■ The farmers there were making the handsome profit of £9 per acre. This in the light of the poor returns from grain-growing and cattle raising ruling at present appealed greatly to the farmers of South Otago. He had read that the Colonial Sugar Refining. Company was making colossal profits annually. Not only could the company pay a dividend of 12£ per cent., but up to last year the sum of £200,000 had been added to the reserve fund. The manufacture of sugar was apparently a very profitable business.

Mr, Hawken, in replying to the deputation, said that the sugar beet industry had already been made the subject of close consideration and investigation by the Trades and Industries Department, which had inquired* into every aspect of the new process. Their deliberations were not yet completed, so that no recommendation could be made, but a full report would be furnished at an early date and should be of the greatest use. The Government had gone into the work being carried out at Maffra ((Victoria), where a. venture on the lines proposed by the deputation was not in the best of positions. It- was found that about the only way to make the industry profitable to the farmer was by the imposing of a heavy duty. New Zealand just now had about the cheapest sugar in the world, and he considered that the imposition of 2d per lb in New Zealand would be far too heavy on a commodity which was now retailed at a cost in the vicinity of 3d per lb. Tlie establishment of the industry in England had cost the companies about £200.000, and it was found that a working capital of £15©,000 was absolutely necessary. ' The most vital consideration was that of finance. It would take a great deal of money to make a start, and once the industry was? under way a prohibitive tariff on sugar would be.,essential. The deputation’s request for investigation and experimental plots, said Mr. Hawken, was a reasonable one, and he would assure them that he would do all he could to facilitate it. He felt sure something worth while would be done if farmers were prepared to do their share of the work.