King Country Chronicle. Tuesday, December 15, 1931. OUR PRIMARY PRODUCTS.

King Country Chronicle, Volume XXV, Issue 3404, 15 December 1931, Page 4

King Country Chronicle. Tuesday, December 15, 1931. OUR PRIMARY PRODUCTS.

Dairy produce, meat and wool are the foundation of the commercial life of this Dominion. Without our exports of these commodities the towns would very soon crumble a'nd tens of thousands of people would be eliminated from the industrial and commercial life of the Dominion. The prices for our exports have fallen below pi'oduction costs. This is not due to over-production, but to a world-wide slump owing to the financial chaos raging in every country. While we have to face fierce competition on the British markets from other countries 'for our dairy produce, the demand in Great Britain is increasing, showing that the lower prices lead to greater consumption. This applies more especially to butter. With the lower prices for butter the margarine trade has been seriously affected, there being such a small difference between the natural and the synthetic article that the people are purchasing larger supplies of butter. A report by Messrs. Weddell and Co., Ltd., states that while the Home make of butter was well up to normal last year and the imports were the heaviest on record, the stocks in store at the end of the season were very much smaller than at the beginning. Figures drawn up by this firm indicate that for the twelve months under discussion the total consumption of butter was at least 10 per cent, higher than in any other year. This disposes of the idea that there has been an overproduction in butter. The demand is there, provided the price is such that our butter can compete successfully with margarine and the article manufactured in other countries. The same principle applies to wool, for with the low prices prevailing the last two years, the companies manufacturing synthetic fabrics have seen

their supplies lagging on the market. It is impossible for any country to grow wool at present day prices, but the experiences during the last, decade has proved that when wool goes above a certain price the demand drops off. | The people turn to the cheaper and inferion article when wool prices I soar, and the demand for woollen goods drops off. To-day manufacturers are having a hard time because there is so little difference between the genuine and more lasting article and the artificial fabrics. These experiences go to prove that New Zealand must reduce its costs of produc-

tion if the dairying and sheep industries are again to be placed on a sound footing. The primary producer cannot go any further in this connection, for while production is becoming more intensive by modern methods being introduced, it cannot be said that there is a farmer in the Dominion who has earned interest on his capital outlay, and paid himself a living wage. Some of the dairy farmers have just paid their way; others have not. In the case of sheepowners there is not one that can possibly have paid his expenses last year, and the same situation will face them at the end of the current year. It is not anticipated that the present low level of prices for wool will prevail indefinitely, but if a rise takes place, even next year, there will be a lot of leeway to make up. As for butter, indications go to prove that prices are not likely to reach the same level as prior to 1929. 'Wool may be sabilised at something like 9d a pound and butterfat between V- a'nd 1/2 a pound. The question is whether, under existing conditions, the average farmer can produce at these prices? We do not think so, and it remains for the Dominion to take steps to ease the load of the farmer. Land values and interest rates will have to be reduced; transport must be cheapened; manure obtainable at a lower price; concession given in rating through the tax on petrol, and the Customs duties on the commodities necessary for farming. It is a big order, certainly, but very necessary for the future prosperity of this country. The best brains of the Government and in business circles must help in this matter, for if the position of the primary producer is not stabilised, it is impossible for any section of the community to be prosperous. For too long this Dominion has tried artificial means of bolstering up prosperity. With the changes that have taken place in our overseas markets we have to face hard facts and deal with the position fairly and squarely.