Costs Bar To Diversified Farming

Northern Advocate, 20 November 1941, Page 2

Costs Bar To Diversified Farming

[Special to “Northern Advocate”] AUCKLAND, This Day. Replying to the statement made by the president of the New Zealand Manufacturers’ Association (Mr. C. V. Smith), that farmers should diversify their production considerably more than at present, the acting-president of the Auckland Provincial Farmers’ Union (Mr. J. H. Furniss) said nothing was. more desirable. He pointed out, however, that the prevention of such a development was due entirely to high costs involved. Such costs had risen as a direct result of increased labour costs brought about by high living costs attendant upon the development of industries which can only be described as economic parasites, in that the development had only been made possible by the imposition of high tariffs and embargoes. ' The vast increase in the cost of living and its reactions so far as the cost of producing and processing were concerned could never be other than uneconomic if viewed in the terms of the price of the product of such industries. Not Production—Processing “The nature of the problem is illustrated by the fact that the total consumption of tinned fruits is about 800 G tons per year, of which about GOOO tons are imported,” continued Mr. Furniss. “The problem is not to produce the fruit, but to get it canned at a cost that would enable us to compete in overseas markets. “If such things as fruit and asparagus could be canned and exported it would certainly make more secure the economy of this Dominion, all branches of which are so largely dependent on our ability to buy imports by means of production. This includes both machinery raw and semi-manufactured materials. “If Mr. Smith can suggest a solution to this problem he will find the farming community an eager listener.”