Farming Column

Hokitika Guardian, 14 October 1933, Page 8

Farming Column

N. ZEALAND FARMERS’ OUTLOOK

AN ENCOURAGING MESSAGE

WELLINGTON, October 11

An encouraging message for New Zealand farmers was brought back bv Mr David Jones, chairman of the M eat Producers’ Board, who returned by the Tamaroa to-day after an absence of six months in Britain.

‘The outlook tor meal- in the coming season is distinctly encouraging,” said Mr Jones in an interview. “I would not venture on a gamble .of forecasting prices ; but it is reasonable to expect a very substantial increase over last year. Not only has meat improved, but aiso wool, pelts, and other by-products are still soiling at advanced prices, and the output of lamb from Australia promises to be much less than in the previous year.”

Mr Jones advised New Zealand farmers to be very wary about selling stock forward. They were hard up and entitled to every penny that their stock was worth. Responsible circles in Britain, he said, believed that the financial and trading position' was definitely improving. In August last there were half a million more insured persons in employment' than there were at the sfme. period in the previous summer. This reduction in unemployment meant a saving of £200,000 weekly, amounting to more than £10,000,000 a year. '*

.The purpose of Mr Jones’ visit was to renew the fre'ght contract for in frigerated meat cargoes, the previous contract, extending over three years, having terminated. The new contract, lie 'believed was excellent from the Dominion’s po’nt of . view. A reduction had been secured of 7.05 per cent, off the present net rate on all refrigerated cargo. This would mean a saving of about £IBO,OOO a year—a substantial reduction which, lie thought, would be appreciated l>v the farmers.;. Although This board was not concerned with wool freights because, of the difficult position of primary producers be had entered .into., negotiations • with! the shipping companies .regard ; ng these freight" a 150.., Mr,. Jones was not able to an.ijounee v;the result of his negotiations but 'he, was hopeful that a reduction. (.would be made here al o. The reductions secured ’by the .Dairy Produce Board, which were tbo. same .percentage as the reduct'o’.is rcn meat, would been announced . by Mr W. A. lorns on his return from England. Mr Jones mentioned that! It lie Meat Board arid the Daily Board acted together in respect to ototoaT'' shipping; contracts,- and •'■fheto' had .arranged,-improvement in the-,,rcgu-'larftiY of arrivals of ships "Jn /|f ßptam, ;which would n mean a Considerable increase. ,in the, number” of? timetable, departures from NdV Zealand The quantity of meat Actually on the water ..always had iiv' important hearing on the stab' lity 'of / the meat market,;, and he believed that the result of this further agreement would be a material foe befit.

FARMER'S NEWS AND NOTES Mr T. Baxter, envoy from the National Farmers’ Union made it very clear when in the Dominion that the British Government and his fellow farmers in Britain now wished a quota imposed on cheese instead of butter. Such a proposal is very unfair to the dairy-farmers of this Dominion supplying cheese factories as this country would be the one seriously effected by any restriction. According to the Empire Marketing Board’s last report, 134,650 tons of cheese were imported into Britain from Empire countries during 1932, and only 15,700 tons from foreign countries—principally fancy makes of cheese from Holland, Italy, Switzerland and France. New Zealand is the principle source of cheddar •cheese ''imported into Britain, supplying 62 per cent of the total imports viz. 92,650 tons. Canada, exports 37,250 tons but her exports are dropping as a considerable amount of her cheese now finds its way into U.S.A. Australia’s export quantity 3,700 tons is negligible. ,* * * “Too old at forty” was a saying that worried pre-war England; “Too young at 39” may go down to history as the slogan of 1533. According to Home papers the two most highly-paid officials for whom the new Milk Marketing Board are advertising—the manager and the marketing officer—must he between 40 and 55. The manager of the new Milk Marketing Board will be paid £7,500 and the salaries of the five super-milkmen who will control the scheme will amount to £17,000 yearly. Included in these five men is Mr T. Baxter who has been appointed chairman of the Board. As this newly created Board commences operations on Ist January next, the cause of Mr Baxter’s hurried visit is apparent. * -X- -X- -X- ’

The ten principal 'countries exporting butter to Great Britan last year wore.—(l) Denmark... 129,200 tons; (2) Now Zealand ... 111,150 tons; (3) 'Australia ... 89,800 tons; (4) Argentina ... 19,500 tons; (5) Russia 16.1-50 tons; (6) Irish Free State ... 15,750 tens: (7) Finland ... 10,850 fyns; '(8.) Sweden ... 8,800 tons; (9)' Latvia ...

,5,0-50 tons; (.10) Estonia ... 4,150 tens. 'Early in the present - year it was suggests'.! from Homs that a- restrictive

quota of 6 per cent should be imposed on Empire butter, an d 12 per cent on foreign. Such a. restriction, if imposed, would .have effected the other countries, but its incidence would have been spread and therefore the imposition would have been equitable. But with cheese, there is no spread of incidence, and,' if imposed, will fall crushingly and inequitably on Now Zeaand. *** * .

Schedule A of the United Kingdom New Zealand Agreement at Ottawa reads thus“As regards eggs, poultry, butter, cheese and other milk products, for New Zealand produce util be continued lor three years certain. His ,Ma jesty’s f Government in the United Kingdom however, reserve to themselves the right after the expiration of the three years if they consider *t necessary in the interests of the United Kingdom producer to do so, to review the basis of preference so far as relates to the articles enumerated, and, after notifying His Majesty’s Government in New Zealand to impose a preferential duty on New Zealand produce whilst maintaining existing preferential margins, or in consultation with the New Zealand Government to bring such produce w'ithin any system which may he put into operation for the quantitative* regulation of supplies from all sources in the United K'gr.dom market.” In the terms agreed upon at Ottawa are adhered to, dairy produce in any quantities will he allowed to enter Great Brita'n duty free for two years longer if exported by /'Empire countries. ***•>?• The British National Union, the organisation that arranged the tour of New Zealand by a. party of Br'tish farmers in IS3O, is organising another tour to visit South Africa and Rhodesia at the. beginning of 1934. The party will leave Southhampton ou 19th January, 1934, and will return to- England on 23rd April. Arrangements are being made 'with the Government Railway Department to place a special train' for the entire journey at the disposal of the party. This train will he equipped for both sleeping and catering on the most modern scale, 1 and at all the principal towns the ' best hotels have been selected for accommodation. The cost of the actual tour in South Africa will be about £l5O. To

any. New Zealand farmer wishing to join the party at Capetown, the cost of the trip would be between £3OO and £350. The organisation has appointed Major-General F. J. Dunca'n ‘as Secretary vice the late A. Canjiam. *4 * * . The. following extract is taken from “The of June, ICth 1933, /regarding • resections on -foed-stuffs imported, into Great Britain:— “The vhoje tiling is indeed an example of •the" economics?of'" topsy ! turveydom which have recently been preached so loquaciously by Major EllioU and Dr Uurgin, whose favourite text has been that meaningless catchword “the economics of glut.” The premises*"underlying this seriously naive misconception seem to he (a) that agricultural prices have fallen because tliei'O has. been too great a- production of foodstuffs! in tlie world; (hi that tins situation is best remedied hv artificially forcing an increase in the domestic production of the United Kingdom, Whilst at the same time excluding foreign imports until the resultant scarcity raises prices sufficentlv to remunerate even the least efficient Briish producer. In criticism of this delus ive remedy for our present distresses it may perhaps be appropriate to make a few general observations. The appearance of “glut” all the world over is not due to any general overproduction as such, but to the enevitable underconsumpton resulting from protracted and severe monetary deflation, and consequently the attempt to raise differentially the prices of agricultural produce bv creating separate artificial scarcities here, there and everywhere in the body economic can only impoverish still further some nine-tenths of the population of this country. Moreover, the quota method, as all economics experts have long ago recognises, is quite disproportionately destructive of international (and for that matter of the most economical domestic) trade and will therefore affl'ct still further our depressed basic export industries. if only by raising the cost of living, hitherto kept low by cheap imports, which has in the circumstances enabling us to support the present crisis with i.ts huge volume of unemployment far more easily • than those countries like Germany, for example, who have indulged in heavy agricultural protestion. Nor is it easy to see how this “new economic policy” is ultimately reconcilable with last year’s fervour for inter-imperial trade seeing that for the most part the real rivals of the British farmer are the Dominion producers.” * -x- * *

The future of our dairying industry is a quesfon of unparalleled importance from a national viewpoint.. Hie economic, and ultimately to a large extent 'the social destiny of the Dominion, depends on the decision reached in respect to our trade relationship wtth Great Britain. Every acre of land now earrving dairy cows is capable of maintuning or increasing its present production under reasonable conditions of management. If farmers were to be limited Tn their supplies to dafry factories, they would either relax in the.r management and continue to milk the same number of cows producing less efficiency, or cull heavily on production and milk less cows. Restricted output ■••</£ dairy produce whether

effected through quotas or economic forces completely upsets our expansionist psychology built up step by step as the Dominion lias developed. The quota is universally ackiowleclged to be the most restrictive form of protection yet invented, based, as it is, on the notion that by strangling supplies the result tig “profits” will suffice of themselves to usher in an era of “recovery.”