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New Zealand Herald, Volume XXIV, Issue 7915, 6 April 1887, Page 4

Reports relative to.the agricultural industry of this colony have of late been the reverse of favourable, and complaints from the farmer of unprofitable seasons are becoming the rule rather than the exception. It is but a

short time since in many, if not all, parts of New Zealand, agriculture was looked upon as one of the most profitable investments for capital assisted by experience ; and those whose knowledge of farming enabled them to take the fullest advantage or their opportunities had the gratification of enjoying substantial returns as a reward of their energy and enterprise. Now, however, all this is greatly changed, and instead of handsomeprofits a hard up-hill struggle is the lot of many a farmer. , Everyone will admit how important, nay, how indispensable a part, a thriving rural population plays in any country, and how doubly necessary the presence of this element must be in a young colony like New Zealand. It, therefore, behoves all who have the weal of the country at heart and who are really anxious about its future progress, to assist by every available means in the - development of its agricultural wealth by endeavouring to inquire into the causeswhich at present handicap the farmer and retard settlement. As in the case' of every other flagging industry there exists a reason for.this form of depression, and if our efforts fail to pierce through the thick veil of causes surrounding it, at least we may be successful in removing some of them, and showing how the future, by taking fullest advantage of our geographical position and natural advantages, may chronicle a much more hopeful record than the past.

The primary cause of trouble to the farmer was undoubtedly the fall in price his produce sustained, in itself brought about by the depression existing throughout all forms of commercial enterprise. So soon as over-production began to make its baneful presence felt, and prices of manufactured goods fell, so soon did the value of the unwrought articles experience a reduction in value, and the producer of raw material more speedily than perhaps any other section of the community, became unpleasantly aware of how the shoe pinched. It might be contended that the cheapening of commodities by reducing the cost of living would very soon equalise the farmer's loss in diminished returns for his toil but instead of this being so the very reverse is the case. It is a well-known fact that the wages earning classes were the last to feel the effect of commercial stagnation, and even now, notwithstanding the widespread depression overshadowing almost every country in the world, wages have fallen to a very limited degree. The result of this lias been that manufacturers being obliged to lessen the cost of production, and unable materially to reduce their wages sheets, adopted the only course open to them, viz., that of largely diminishing the prices paid for raw goods. And further) the farmer having to employ labour at rates but little below those ruling in more prosperous times, became the double victim of- high wages and narrowed returns. This is a matter that, of course, nothing but time will rectify. Attention may be particularly directed to another cause, and one which more immediately concerns this portion of the colony, viz., the want of profitable outlets for agricultural produce. From nearly every district the same complaint is heard, that farmers are at a loss to know how to dispose of the fruits of their toil so as to obtain satis-.' factory returns for capital sunk and labour expended. The world's great market, England, is far removed from our shores, besides being within easy reach of countries rich in agricultural wealth and dairy produce; but if we can find other populous centres for the supplying of whose requirements we possess greater facilities, these ought to engage immediate and special attention. In a former issue we pointed out the advantages offered by Rio Janeiro for disposing of some of our surplus butter and cheese, and again revert to the subject in the hope of inducing merchants and farmers to unite in making an organised effort to secure

this trade, which even now awaits development. Situated immediately beneath the tropic of Capricorn, the city of Rio Janeiro is surrounded by a coffee and sugar growing population and, containing as it does upwards of 400,000 inhabitants, its consumption of dairy produce is both considerable and increasing. At present its wants in this respect are supplied from European countries, principally those of Denmark, Holland, and France, and also from the United States; but of late a vigorous trade has began to spring up with the neighbouring countries of La Plata and Uruguay, which no doubt before many years have passed, will have developed into exceedingly large dimensions. Until recently these countries were not only in a disturbed but also an unsettled state; now, however, all that has been changed, the Governments having grown stronger and better able to enforce law and order. This has had the effect of causing settlement to advance rapidly, and the gradual fencing in of the country with barbed wire has presented a very effectual check to the bands of Indians and wild Gauchos who hitherto were able to ride at will over the vast plains of the River Plate basin", driving off cattle and murdering settlers. Farming in these countries has all

along been directed almost exclusively towards the rearing of cattle and sheep with a view to the export of beef and mutton; but lately the manufacture of dairy produce has begun to engage the attention of settlers living within the limits of the Argentine Republic, and it is just before the growing trade between that country and Rio Janeiro has assumed such dimensions as practically to command the Brazilian markets that New Zealand farmers and traders should make an effort to establish themselves as suppliers of butter and cheese to some of South America's populous cities. A few months back a trial con- 1 signment of butter and cheese was forwarded to Rio from the Bay of Plenty, and the returns received were, as we have previously stated, more than satisfactory/In February a further shipment of cheese • was made from Auckland, accompanied by letters of inquiry from some of our leading merchants. In a short time the result of -these efforts will be known, when there is every reason to believe farmers will be encouraged to increase their output of dairy produce. To take immediate advantage of this opening market, it therefore behoves our settlers and merchants even now to prepare some organised line of action. What with unlimited' pasture land, a; matchless climate, and frequent communication

with Brazil, there is no reason why the colony of New Zealand should not largely supply that country with butter and cheese, and thus find a profitable outlet for at least one branch of the farmer's industry. ;