HIGHER COSTS

Hokitika Guardian, 22 September 1937, Page 5

HIGHER COSTS

FERTILISER INDUSTRY A RECORD PRODUCTION Records for both the value and the volume of the production of supeiphosphates and chemical fertilisers were reached in 1936-31, according to returns obtained lrom the eight works engaged in the industry by the Government Statistician. Mhe production of superphosphates amounted to 347.1(59 tons, an increase of 24,947 tons, or 8 per cent, over that of the year before, and the output of 45,674 tons of other fertilisers exceeded the 19353(5 figure by over 17,000 tons.

The last monthly abstract ol statistics states that very minor fluctuations in wholesale prices ol superphosphates lmd occurred during the last three years, and this was reflected in the average price returned to manutacturers, based on the average selling price at the works. During 1930-37 manufacturers received .03 12s Sd‘ a ton for superphosphates and ill Its 5d a ton for chemical fertilisers, the corresponding prices lor the year bet ore being £3 13s fid and £4 Lis 2d respectively.

Government Policy “The almost constant price for superphosphates in recent years is due to Governmental action,’ says the Abstract. “Between October. 1931. and June. 193(1. the Government subsidised the manufacture ol superphosphates. but from July 1, 193(1. the subsidy was withdrawn. In lieu oi the subsidy the Government has by regulations dated -July 14. 1939. fixed the price for superphosphates at £3 Ills a ton ex works in the North Island and at £4 2s ex works in the South Island. Certain rebates are. however, allowed to merchants purchasing for resale, and to dairy companies.” More Workers Ail increase of 25 per cent lor salaries and wages paid during 193(5-3 1, compared with those paid in 193 >-36. had been revealed by the financial statistics of the industry. The average number of persons engaged in the industry had also risen, from 690 to 753. an increase ol 9 per cent. Both tin. cost of materials used ami the value ol output increased by 10 per cent, and other expenses moved up by 14 per cent. The excess of value of over manufacturing costs receded lrom £172,867 in 1935-36 to £161.817 in 1836-37, a decrease of 6 per cent.