THE FLAX INDUSTRY.

New Zealand Herald, Volume LXIII, Issue 19459, 15 October 1926, Page 16

THE FLAX INDUSTRY.

PROMISE OF EXPANSION. WHY I HAVE FAITH IN IT. B3f HERBERT A. SIETFEEIT. I believe that this industry will continue to prosper. Before the war it was very prosperous. To-day it is in a moderately prosperous condition. These are difficult times. We are in a period of readjustments and values are wjiolly unsettled. So the present stato is no criterion as to the future of any business. The only sound method of estimating the future prospect is to compare with pre-war. Three factors will determine whether or not this industry will prosper. They are—quality,, price, and cost of production. We control the first and the last, but over tie second we have no power whatever. Prices aro ruled by worldwide economic conditions, such as those that control the export values of all oar primary products. We may control quality by cur inventiveness. The cost of production is partly in the millers hands, but also will depend upon the general economic state of New Zealand. Now compare the pre-war and present future upon each of these three factors. Virtues and Fault? of New Zealand Flax. Our ■ fibre has not quite held its own with its great rivals. Sisal especially has made big gains in quality. The consumers are becoming used to a good standard of quality and in time will refuse, except at a great reduction in price, to buy low grade fibre. To hold our place wo must improve the quality, especially the purity. The strength of our hemp is quite satisfactory. The colour is no cause for complaint, but it would be advantageous to improve it. New Zealand fibre has three major faults, viz—tails, thin edges or straws and mixture of qualities. Not one of these faults is inherent in the fibre; all are remediable by skilled and careful millling. We have not to search for remedies, they are at hand. All we need to do is to act. Eliminating those three faults would make our position quite secure. But we have in reserve wonderful gains that can yet be made. Chemical bleaching will yet be employed commercially to bring up our colour to an undreamed of standard. And who can tell what developments in quality will result in selection of breeding of flax ? This is our trump card. The Problem of Price. This depends upon production and consumption. The production cannot be increased over rapidly, as it takes several years for any fibre-producing plantation to come into bearing. Further, this waiting time causes investors to be more cautious than with quick-return investments. One effect of this caution is that the industry would have to show prosperity over a number of years beforo gaining additions to capital for extensions. Turning to the aspect of consumption, tha writer feels particularly hopeful. Fibre is used to-day chiefly for cordage and binder twine. The increasing commerce of tne world causes a steadily growing demand for the former, and the increasing population of the world causes increased growing of grain. This proportionately affects the demand for twine. Russia and Siberia will be coming into the twine market before many years. This also should increase the demand for our fibre. There are, however, factors outside the above-mentioned that cause the writer to feel that the production will scarcely keep pace with the consumption within a decade. Fresh uses for fibre will be found in the building trade and in paper making. Already these industries are turning to New Zealand fibre. Were both to go "right into" using fibre they could use twice the world's present production. Cost of Production. From all appearances it seems that the world is returning somewhat to pre-war currency. This must result in lowering the prices of our primary products. One of the chief effects of this will bo a reduction in the cost of living and of wages. These in New Zealand today are 60 per cent above pre-war times. The price of hemp is only 30 per cent, higher. Concerning the flax industry, the writer believes that labour costs will fall considerably; but prices little, if any. This will benefit the industry materially. Before the war most flaxmills used steampower; now electricity is in general use. This means on an average a saving of 15s per ton. Cultivated flax is going to be a big eeonomy, the greater fibre percentage alone considerably reducing costs. Our milling methods, too, offer scope for economies, by greater use of automatic machinery and improved processes. At present eight men are required in the process of milling, including paddocking and scutching. It should be quite possible to reduce this number by half. Automatic sorting and loading machinery will yet be evolved. Chemical bleaching and artificial drying are quite within the bounds of possibility. These are not mere dreams of what may come in the far, far distant future, but very real improvements which, even now, are in process of evolution. Our Competitors. From time to time considerable uneasiness is caused the New Zealand fibre producers by re-.orts of how cheaply sisal can be produced. But the writer imagines that it is no greater than will be the uneasiness of the sisal people, on hearing the statements lately made of the cost of pioduction (on paper) of our fibre! Rumours of new competition and wonderfully low production costs have reached New Zealand ever since we have had a hemp industry. The fact that all our competitors have coloured labour has been regarded as a dangor point. But from all the writer has read, he gathers that coloured labour's wages are rising more rapidly than its productive capacity. Wo held our own before the war; we can do so to-day. The sisal people have already selected the plants; we yet have that advance to make. The countries that produce sisal and Manila fibres are to-day regarding present pricfo as the lowest they could afford. If prices fell unduly they could produce other tropical produce to better advantage; and certainly would Summary. The outlook for New Zealand fibre producers is good. But we should no* be content to merely plough along in the same old furrow. We must endeavour to improve quality, and lower costs, steadily and unceasingly. Then prosperity will be ours. If we do not advance we will surely go back. _____