FIERCE COMPETITION

Hawera Star, Volume LI, 28 May 1932, Page 7

FIERCE COMPETITION

CANTERBURY DAIRY COMPANIES OVERLAPPING IN CREAM COLLECTION OVERHEAD CHARGES AND THE FARMER. That the war among the dairy factories operating in North Canterbury resulted in overhead charges reducing prices 'paid to dairy producers in that area to an absurd and disastrous degree was the allegation made ,at the annual conference of the North Canterbury district branch of the New Zealand Farmers’ Union held in Christchurch last week. After discussion it was decided that a committee representative of dair\ farmers, set up by .the executive, form a delegation to confer with factory managers with a view to reducing overhead costs and thereby increasing the return to the producers. Mr. H. IV. Mclntosh, of Springston, introduced the following remits, calling attention to the need for early action:

This branch of the Union requests that the conference discuss ways and means and use all power possible to do away with the present unnecessary high cost of cream collection ana suggests that the companies should co-operate in a contract system of collection. (Springston).

That dairy companies be asked to co-operate in the collecting of cream. (Waimairi).

That the attention of the Government he drawn to the fact that the North Canterbury dairy companies in their competitive methods with each other are reducing the price of but- j terfat to the grower to an alarming | degree. (Ellesmere). “AT EACH OTHER’S THROAT.” Mr-. Hawke said that the representative attendance at the meeting held at Springston was testimony to the amount of public interest in the subject of dairying costs. He said he had been filled with disgust at what he had heard at the meeting. It appeared that each company was at the throat of the other, and new that the off season was just starting the period was opportune for considering the methods necessary to help them out of the quagmire. LOSS TO DAIRY FARMERS. It had been stated that about £90,000 had been lost to the dairymen last season by the wrangling of the dairy companies, and if that was so then it was quite time action—and drastic action —was taken by the farmers themiselves, Mr. Hawke added. “I have had as many as sewn 'pamphlets in one season from companies asking me to change from the one to whom I was sending, my cream,” Mr. Hawke continued. “The whole system is not right, and involves us in a war between companies. The time has come when farmers must put down their feet. We want a straight deal, and this matter must be brought before the various company managers. We may yet be able to bring daylight out of the darkness, or prosperity out of the chaos.” . Mr. Jas. Dunlop, of. Waimairi, urged drastic action to remedy the present stress of competition and over-lapping of interests, which he styled unnecessary and costly to the producers. Mr. E. G. Armstrong, of Banks Peninsula, maintained that there was a very great loss to the producers in the methods of cream collection, as an addition to the direct charge there was the further indirect charge of wear and tear on roads owing to increased heavy traffic during the continual war between companies. It was time that the farmers stood up for themselves and ceased to lean on the companies, who were virtually running the business for them. That dairying to-day, owing to the ■price level being forced down by absurd increasing of costs by company war, had become a “killing occupation with nothing in it,” was the contention of Mr. L. Watson, of Oxford. Overhead costs were absurd, he said. “A WANTON WASTE.” Mr. Colin Mclntosh, the president of the Union, said that there seemed to be a wanton waste in the collection of cream, and it waij, his opinion that it should be collected Try contract and delivered either to the factories themselves or to a central depot, where factories could collect it separately. He was certain that that could be arranged. To-day the factories had first pull at the cheque, and after deducting the amount for expenses, simply handed on the balance. “It is our move, the factories say,” continued Mr. Mclntosh, “and as the matter is stated to he in our hands, we will see that it is taken up immediately and a remedy sought.” (Applause). Mr. T. Morton (Waimairi) : It is said that the matter is in the hands of the farmers, but are not their hands tied. (Laughter). It was decided that a committee of seven be appointed to confer with the managers of the companies operating in North Canterbury, with a view to cheapening the cost of cream collection and bv other means making the return to the dairymen larger. All matters to which reference was made m the three remits was to be included m discussion. ... The personnel of that committee will he announced, after the next meeting of the executive.

TURNING BADNESS INTO GLADNESS. When in the grip of a cold what a sad world it is. No energy, no appetite, no taste, no smell, and what a wretched weak feeling all over. You feel you rvould give anything to be your brisk, cheerful self once more. Then you remember Baxter’s Lung Preserver. You should have taken it first thing to prevent the state you are in. But better late than never. _ A few doses of “Baxter’s” quickly drives out the cold and its valuable tonic properties quickly restore that “o-lad to be alive” feeling. All chemists and stores sell “Baxter’s” at 1/6, 2/6 and 4/6.—Advt.

BREEDING _OF PIGS 1 EARLY MATURITY. ! i CONSISTENT PRODUCTIONS. 1 In view of the interest in the tie- _ velopment of the pig industry in Taranaki, all information possible ifom | other countries will be of value, even ■ though the results recorded are obtained with a pig which is not considered quite the best for this country by many experienced farmers. In the course of an article in the Melbourne “Leader,” the writer says inter alia: Much has been done, in recent years by progressive pig breeding by selection for early maturity, but it' is exceedingly rare for any one breeder at any one time to put up such outstanding weights for a number of litters as Messrs Fairchild and Cl utter buck have recently done in their Vaueluse stud of large whites at hnainba Splendid weights were attained by four litters born between October 20 and November 17 .last. All the pigs received the same treatment as regards feeding and accommodation. The first of these litters was farrowed October 26, and was out of Vaueluse Vanitv 23rd. At the age of 91 days this litter weighed 7761 b, or an average weight of 971 b < aeh. Another litter farrowed on November 1 was out of Vaueluse Venus 2 9th, and at 100 days of age the pigs totalled 7941 b, or an average of 9911 b each. A third litter born on November 6 was out of Vaueluse Valencia 20id. At 92 days old this litter weighed 800 Ih., or an average of 101 lib. A fourth litter out of Vaueluse Vanity 20th, was farrowed November 17, and at 92 days old weighed 9031 b, giving an average of 90.31 b each. PRECAUTIONS AT BIRTH. 'The litters were farrowed in a clean, roomy sty. which had previously been sprayed out with a strong solution of caustic soda and boiling water to kill the eggs of any parasites. The dams had also been given a wash to make sure nO’ paritie infection could come from them. At three weeks old the young ones were given a trough to themselves and fed three times a day, while their mothers were turned out for exercise and a little green lucerne, and from this age on each litter was also allowed a couple of hours’ run daily on green grass or lucerne. The feed given the litters at the start of feeding was a thin slop of pollard and skim milk. After about a week a little barley meal was added, and later a little crushed wheat.' They received this treatment until they were two months old, when they wore weaned and a week afterwards turned out in small paddocks, each containing a shelter shed and self-feedei. After "being turned out. the skim milk was fed in a separate trough twice a day. otherwise they received no attention whatever. Most farmers could greatly increase their net returns were they to use hoars which had the powers to transmit their own early maturing characteristics to their progeny, and still further increase their profits by selecting their breeding sows from the best of quick growing litters. It is unprofitable these times to keep on the farm any breeding sow which when mated to a good hoar will not produce a litter that can be marketed as prime baconers at five months old.

FARM EXPERIMENTS ENGLISH FARMER’S PLAN. “The average farmer does not find much time or opportunity to make experiments, but 1 have, for years, found a way which takes little of either, writes an English farmer in a London paper. “The majority of farmers find it necessary to treat certain fields with fertilisers, and most of us, each winter, do use a certain quantity of basic sla°" or other phosphatic manure, lime, superphosphate or kainit. When I am applying any of these to any given land", I usually arrange to keep a bag or two out of the bulk and use it on a marked-out plot in some' other field. I mav have a grass field which I do not think needs any money spent on it, but I should like to test whether this is correct or not-, so when, for the sake of argument, my men are distributing basic slag and kainit on some other field, I try out. perhaps 2 crvvt. of basic slag and Jcwt. of kain’t on a quarter acre plot. “The following summer will show by observation whether this dressing has had any appreciable effect on the plot and give me an indication as to whether it will be worth dressing the whole of this field the following autumn. If this system is carried out more or less regularly it enables us to plan our fertiliser programme well ahead and often gives us information in advance, which I, personally, have found most useful. I do not suggest tliat much money is wasted on fertilisers, for I have seldom found any application fail to produce results that repaid me. I do think, however, that we not always use our fertilisers to the best advantage, and we have to make our own experiments to find how to do this.”

BACK TO THE LAND VICTORIAN MINISTER’S SCHEME

Encouraged bv the success which has attended the placing of 160 unemployed men and their families on the land in Giplpsland, HeytesburV and Otway eight months ago, the Minister of Lands in Victoria, has devised a scheme for extending the number to 1000 farms. Some of the 160 men went on to abandoned blocks which had reverted to the Closer Settlement. Board; others were nlacd on virgin Crown land. Of the 160 only two have not remained on their blocks. The settlers are reported to be in good spirits and full of confidence regarding their future. The 160 men were placed on their blocks on a 12 months’ probationary period before being permanently settled. The blocks of Crown land proposed to be made available under Mr BaiW* scheme will be in reliable rainfall areas] and suitable for dairying and mixed farming. Financial assistance will be provided out of tbe unemployment relief tax fund. Shelter and sustenance will be Provided. When tbe men have been selected for t(he probationary period, it is proposed that an advance group should go on to the land selected to erect tbe shelter pending tbe arrival of tbe families. The necessary rough timber would be obtainable on the land, but galvanised iron would be supplied. Tlie men would work in groups of. sav. 20. clearing about acres or more, as agreed upon, on eoeh of tbe 20 blocks. When tbe areas agreed upon bad been cleared, nests for fencing would be snlit. The 20 blocks would then be balloted for between tbe 20 men. each of whom would then remove his portable abode from tbe eentral position where all the shelters had been temporarily erected Ao that the men could conveniently radiate to tbe various blocks when working together). Each man would also collect bis share of the fencing posts. From this stage until his probation period of 12 months bad expired, each settler would continue to 1 further improve bis block, and whilst

so doing receive weekly sustenance out of the unemployed relief fund. Mr. Bailey says that for the men doing hard work the present rate of sustenance is insufficient and would have to be increased. Roads will bo constructed to serve the settlements, giving employment to a number of other men.

FARMING_ COSTS OVERHEAD CHARGES. EFFECT ON PROFITS. Estimates of the current value of the various types of land in occupation and the offer of advice on such matters as the most profitable methods of management, average land valuations and the actual producing value of different classes of land are contained in the latest bulletin of the Canterbury Agricultural College. The subject dealt with is the nature and significance of overhead charges on the farm. It is pointed out that on average farming land, and in normal times, overhead expenses, including charges for the owner’s capital, the labour of the farmer and his family and i pel cent. interest on tlie G-overnment vaination of the land and improvements, have varied from a third to a half, and averaged about 4.5 per cent, of all charges and of all farm income. When income suddenly falls, as has happened through the fall in prices since 1929. these charges may absorb all or more than all of the farm income unless overhead costs can be reduced.

For the year 1930 overhead charges of 6s 7d a sheep absorbed 98 per cent, of the farm income on wool countrv. On average South Island grazing countrv overhead charges of 8s 8d a sheep absorbed 67 per cent, of the farm income. For 3931. where'production has not increased, overhead charges of 9s nor sheep would absorb over 10U nor cent, of the farm income on North Island grazing country, while overhead r>li a rcos'of £7 per cow on average good Movth Island dairv land would absorb off ne.v cent, of the farm income. DETERMINATION OF VALUE.

There is a constant tendency, the bulletin says, for overhead charges to increase, especially in periods of nsing prices. This increase is not always within the farmer’s control. For instance, in a -period of rising prices lanff tends to increase in value and those who commenced farming during this period are obliged to purchase on a rising market. Some loss is inevitable for such people if a period of falling prices sets in. Hence, buyers or land are warned to avoid borrowing to the full extent allowed by the market. The value that is justified for anyparticular farm at any given time can b<3 determnied in the following nianner: An estimate of the most profitable method of running the <afarm over a reasonably long period must be made. Normal production and normal prices for the farm production obtained under this method must be estimated. On the basis of the foregoing, an estimate can be made of normal farm income, say, £2OOO. From tins must be deducted an estimate of normal farm expenditure, including rates and land fax, interest on tlie of stock and plant and on working capital, all working expenses, costs of repairs, renewals, depreciation, wages of management, and an allowance for contingencies; sav, £I4OO in all. The balance of £6OO represents the amount available for payment of interest on the value of tlie land. This sum capitalised at tlie current rates of interest represents the capital sum on which interest can be paid, or the productive or interest-earning value of the land. The capital value in turn, divided by the number of acres will give the productive value of the land per acre. If more is paid than this, if prices do not remain as high las was anticipated, if production rs less, or if expenditure is higher, then ■ loss must result. If less is paid than this, if -prices rise, if production is higher, or if expenditure is less, then profit results. ADVICE FOR THE FARMERS. Fanners are advised in future to start on a smaller area, which will not necessitate heavy borrowing oil the security of land and stock. Whenever possble the money borrowed should be secured by a long-term amortised loan. If 1 per cent, is allowed for amortisation it will.wipe out the debt in about 36 years. Borrowing against stock and plant, except possibly for working expenses, should be avoided as far as possible, as interest on current accounts is necessarily more expensive than a fixed loan.

Even though overhead and working charges were reduced in proportion to the decline in export prices, the present fall in farm income would, it is contended, necessitate at least temporarily reductions in land values of the following order: On high sheep country, selling wool only, land that was capitalised for 1925-29 on the average at £2 10s per sheep carried, or 10s per acre, has now theoretically a capital value of about £1 per sheep, or 4s per acre; on half-bred sheep country selling wool and some store sheep, land that was capitalised at £4 10s per sheep carried, or £2 per acre, has now theoretically a capital vaule of about £3 per sheep, or £1 6s 8d per aoref; on better-clasts slieep country selling both wool and surplus stock, including some fat stock, land that was capitalised at £6 6s per sheep carried, or £5 per acre, has now theoretically a capital value of about £4 ■nor sheen, or £3 per acre; on North Island sheep country, land that was capitalised at £5 per tsheep carried, or £7 per acre, has now theoretically a capital value of £3 per sheep, or £4 per acre; on good North Island dairy country, land that was capitalised at £B9 per cow milked, or £3O per acre, has now theoretically a capital value of £SO per cow, or £2O .-per acre.

MEETING PRESENT POSITION. The values of land given are called theoretical because unless other overhead costs, including interest on stock and plant, rates and taxes, together with working costs, are also correspondingly reduced, the whole of the reduction consequent upon the decline in prices is likely to fall on land values. Until other overhead and working costs are adjusted, much farm land, and particularly the lower-priced land, is a liability rather than an asset, for its net productive value is less than nothing.

'The present position of many farmers. particularly sheep, is extremely difficult, continues the bulletin. To meet this position either costs must bo reduced or income increased, or both. Overhead costs can be reduced by reductions made under private arrangements, under, schemes such as the Chamber of Commerce scheme or under the provisions of the Mortgagors’ Belief Act. The National Expenditure Adjustment Act is calculated to still further relieve the position. Income can be increased by two methods, first, by increased production, which both increases income and causes lower per unit costs, and, second, by an increase in the net market prices of farm products.

Much attention has been given at Canterbury Agricultural College' to methods of increasing farm production and of lowering farm costs Information bearing on these matters has been

built up from economic research, farm management surveys and studies of farm costing and farm accounts. From the study of tsuch data it is possible to reach estimates on matters, such as the most profitable methods of management, average land valuations and the actual producing values of various tvpes of land. ‘ Advice on these matters is available to these farmers who desire it. Any inquiry should be accompanied by a full description of the locality of the farm, the proposed method of management. and particulars of actual or estimated income and expenditure.

PRODUCTION IN WINTER FEEDING- AND HOUSING. Anyone who suggested year-round dairying a few seasons ago, says “Nitros” in the New Zealand ’“Herald/’ would have been laughed to scorn by farmers who felt that they had already sufficient work and worry during the nine or ten months[ season, without having their dairying year so arranged as to have cows coming into profit regularly throughout the whole year. To-day many thoughtful farmers are giving careful attention to the idea of carrying on the year Tound, both for the sake of greater per acre production, and for what is perhaps equally important, spreading our arrivals'of butter in England more evenly throughout the year. Already the season has been lengthened in those districts which are dairying intensively, and where the climate is suitable. It is standard practice today in many parts to have the cows in early in July, and they will not be died off until as late as possible. With late ealvers under this system —and a few of these are to be found on most farms nowadays—dairying becomes practically the year-round type, and a very modest extension will bring winter dairying into being on a great many farms.

VALUE OF SALT LICKS DEPARTMENTAL ADVICE, In the course of an instructive article in the Journal of Agriculture, for April, Messrs. B. O. Aston, chief chemist and J. Lyons, Director of Live Stock Division, write as follows on the value of salt licks : “The giving of salt licks to stock, is an admirable method of feeding minerals. The principal is that common salt, which is palatable and sought after by most grazing stock, is a substance of undoubted value in maintaining the thriftiness or health of all vege-table-feeding animals. The other minerals required are apparently not so attractive as common salt, and are eaten to the same regular extent as the salt put before them. It has therefore, become the practice to mix any mineral required with ;a large quantity of coarse or fine agricultural salt and feed it as a powder lick, or alternatively to put it out in the paddocks after pressing the ingredients into a brick or block in order in minimise the wastage by rain. Both methods are extensively practised. In the case of the powder lick it is necessary to have some box or trough, protected from the weather, from which receptable the lick may be fed. In this way such substances (presumed to be tasteless to animals | as they arc to human beings) as calloium carbonate, iron oxide, charcoal, and sulphur are given mixed with salt. Some other mineral foods which are soluble and therefore presumably can he tasted by the* animals, and which are equally necessary, but are used m very much smaller quantities, are also mixed with the salt lick. These are iodine, administered as potassium iodine, magnesium sulphate (Epsom salts), sodium sulphate (Glauber salts). These, presumably, are not repulsive t.o the animal, although magnesium salts have a bitter taste to human beings-

TOP=DRESSING Summing up the position of top dressing so far as grassland is concerned, the authorities at the Plant Research Station write as follows: Despite the urgent need of keeping down farm expenditure generally, the Department of Agriculture without any hesitation, recommends the free use of suitable fertilisers on grassland. Further, while judicious top-dressing mav mean the salvation of some farmers, other farmers, by not top-dress-ing, may go l from bad to worse financially. Extensive evidence shows that the current need is for a greater use of fertiliser on grassland than at any tune in the past. Phosphates are of general and of basic importance. First attention should usually be given to the phosphatic requirements of pastures. Potash and nitrogen at times prove useful auxiliaries to phosphates. If care is not exercised in the use of lime, money may be spent comparatively ineffectivly. Liming a a cheap substitute ror other top-dressing, and as a rule, false and dangerous economy.

FARMING IN WAIKATO EX-KAPONGA RESIDENT’S VISIT. A Kaponga resident, Mr. A. E. King, who settled near Morrinsville some years ago, and has done well in his farming, is revisiting Taranaki. He is an enthusiast in pig rearing and has also gone in for growing pumpkins, marrows . and potatoes fairly extensively and on peat swamp land, reclaimed, he has secured remarkable crops. He has been able therefore to feed the pigs cheaply and well. It may bo added that lie supplies a butter factory and therefore lias skim-milk for the pigs. With the aid of these fodders and a good pasture he has wintered them well. Mr. King considers the farmers of Taranaki do not use the chain harrows sufficiently and is convinced that it is a wonderful asset to the farm. Every farmer up north gets out his bis chain harrows, specially after rani and harrows are in consequence to be seen all over the province, used with excellent results. He is an enthusiastic supporter oi pig recording and believes the association is doing excellent work. He considers that well-managed and economically fed there is a good return to be got~ from- pigs. His marrmvs and pumpkins averages 301bs and his heaviest was 571 b while the potatoes leturned 16 tons to the acre.