BEET SUGAR PRODUCTION

Otago Daily Times, Issue 23223, 22 June 1937, Page 8

BEET SUGAR PRODUCTION

The Minister of Agriculture exercised discretion in not offering a great deal of encouragement to the deputation which confronted him at Temuka with what amounted to a request that the Government should take definite steps in the direction of the establishment of a beet sugar industry in that district. Certainly the Government invited suggestions of that kind when it made known that the question of the establishment of this industry in New Zealand was receiving its consideration, and the deputation, encouraged by the results of local growing, was no doubt actuated by a desire to seize opportunity by the forelock. But the Government would be rash in committing itself to a decision at present. As the Minister observed when speaking on the subject some weeks ago, it has first to be proved that sugar beet can be grown satisfactorily in this country. It seems likely that the verdict on that point will be favourable, in view of the results of such experiments as have been instituted, but the test, has thus far been undertaken on a scale much too limited to provide conclusive evidence such as is required. According to the Minister’s statement, fine results have been secured in small areas, but in large areas the results have been loss encouraging, and a month ago he expressed the view that the experiments would probably have to he repeated during another year. All the circumstances suggest that, before it lends itself to the encouragement of beet sugar cultivation in the Dominion, the Government should fortify itself with a great deal more information than it at

present possesses. Local aspirations do not necessarily reflect national requirements. The establishment of the beet sugar industry would be a business involving a very large outlay and one requiring very careful consideration in relation to the economic prospects. The advocates of the establishment of the industry look to the Government, but there is no reason why, on the plea of the absorption of labour, the community should be saddled with what might prove a I burden. It will have to be proved,

if that is possible, that the introduction of the beet sugar industry would not be a costly enterprise for the Dominion. It was stated some time ago that Mr Nash was to investigate this particular industry while he was in Great Britain, and if he has done so the results of his inquiry should be interesting. The economic aspect of the State-sub-sidised beet sugar industry in England, has been the subject of a good deal of controversy, and there should be a wealth of material, based on experience in the Mother Country, for the New Zealand Government to draw upon for its guidance. The world position as regards sugar is another aspect requiring consideration. In pre-war years the output of beet sugar represented about half of the total world production, but during the war it fell to insignificant proportions. The deficiency in Europe was made good by a rapid increase in the output of cane sugar. In the years preceding the world depression, beet production was again rapidly increased under the shelter of tariff walls and with the help of lavish subsidies, some countries even going the length of subsidising exports at the expense of home consumers. Consequently, as the Economist comments, there was a chronic tendency to overproduction even before the onset of the world depression. The proportion of beet sugar production to the world’s total output of raw sugar rose from 27 per cent, in 1920-21 to about 40 per cent, ten years later. The problem of low-cost cane versus high-cost and subsidised beet production represented one of the difficulties of the raw sugar producing countries that were discussed at the conference held in London in April last.