THE NORTHERN ADVOCATE Registered for transmission through the Post as a Newspaper. SATURDAY MAY 17. 1947. Primary Producers' Problems

Northern Advocate, 17 May 1947, Page 4

THE NORTHERN ADVOCATE Registered for transmission through the Post as a Newspaper. SATURDAY MAY 17. 1947. Primary Producers' Problems

New Zealand has good reason to be intimately concerned in the deliberations of the International I ederation of Agricultural Producers at a conference now in session in Holland.

The prosperity of the Dominion depends so greatly upon the marketing of its primary products at payable prices that any attempt to find a means whereby such prices fnay be assured, while at the same time encouraging increased production, is a matter of. prime importance to the people of New Zealand, but particularly the primary producers.

The questions of increased production and maintenance of payable prices for foodstuffs are inextricably intertwined.

Primary producers’ recognition of this has been evidenced in the tone of the conference at Scheveningen. The leader of New Zealand’s delegation. Mr W. Mulholland, touched a vital point when he declared that one of the first duties was to lay down principles by which an attempt could be made to regulate world surpluses of primary products.

Mr Mulholland’s statement was apparently regarded by the president. Mr James Turner, as likely to create misapprehension of the real purpose of the conference, for he asked whether the statement meant that farmers considered they were entitled to regulate surpluses simply to keep up prices irrespective of the world food situation.

Mr Turner told a Press conference that this was the last thought in the minds of farmers, and he pointed out that the real danger of surpluses was that they caused automatic restriction of production and inevitably led to shortages. This is true whether a surplus has local, national or international application. The overcoming of conditions which have proved disastrous to growers in all classes of primary industry, and at the same time to encourage increased production to meet the demands of millions of people unable to pay high prices, is

a problem as complex as it is important.

The International Fpderation of Agricultural Producers is faced with a task of huge proportions, especially in view of suggestions that world conditions may require lower prices for primary products. Whether there is ground for such suggestions is a matter about which there will be divided opinion, but it would be foolish to ignore an opinion expressed editorially by the London Economist a few days ago, and reported in our cable news.

The Economist said: “There is every reason to expect before long a fall in the world prices of primary products second only to that which occurred in 1921 and 1931.”

In view of New Zealand’s dependence upon returns from primary products, such a prediction of lower prices is not cheerful, but it should be remembered that the latest surveys of the world's agricultural position gave no hint of surpluses which would lead to heavy recession in prices.

On the contrary, food shortages in all parts of the world have been stressed, and at the moment there are urgent appeals for increased production of foodstuffs to meet clamant calls. It would seem, therefore, that for some time to come demand will exceed supply. There remains, of course, the question whether those who need food will be able to pay for it prices profitable to producers.

For that reason the conference of the International Federation of Agricultural Producers is clearly faced with problems the solution of which will not be easy.

Whatever the recommendations of the conference may be. the safe way for New Zealand primary producers to take would seem to be that of increasing production, not merely to provide more food for starving millions, but, by increased volume of output, to obtain greater monetary reward than they would otherwise receive in the event of prices receding.