FARMING CONDITIONS.

Otago Witness, Issue 4039, 11 August 1931, Page 17

FARMING CONDITIONS.

A DIFFICULT YEAR. A COMPREHENSIVE REVIEW. In an interesting review by the president of the Dunedin Chamber of Commerce (Mr A. C. Cameron) of the farming and trade conditions in Otago for the year ended June 30, 1931, Mr Cameron said:— The year just concluded will stand out as one of the most difficult in the history of the Dominion. The extraordinary world slump in primary produce and its resultant effect upon farming and trading conditions in New Zealand has been the outstanding feature of the year. In many cases farmers and business men have found themselves unable to carry on, and many more are putting up a plucky fight to keep going in the hopes of a gradual improvement in primary produce, and in business conditions generally. FARMING CONDITIONS. The great bulk of farmers in this country have either had to eat into their capital or lean upon their mortgagees, bankers, or stock agents. The serious slump in prices has been such as to make it difficult, and in many cases impossible, for farmers to pay working expenses, rates, rent, and/or interest. Many thrifty farmers have come to the conclusion that their previous policy of putting all profits, over and above living expenses. into improvements, reducing mortgage, etc., has been wrong, and that it would have been better to have invested a certain amount in securities, which would be readily convertible into cash, and could, at a time like the present, save them temporary embarrassment. SHEEP FARMING. The sheepfarmer has been most heavily affected by the slump, as the following figures for wool sold at Dunedin wool sales will indicate: — Average price Season. per bale. 1924- £2B 9 8 1925- 17 8 7 1926- 19 11 3 1927- 26 0 2 1928- 21 1 9 1929- 11 5 1 1930- 8 12 9 Fortunately, we have reason to be thankful that comparatively little of our sheep country changed hands during the post-war boom period. However, the above figures will indicate how hard it will go with those who bought during those years, or who paid excessive goodwills on Crown leases. It is fortunate that production has increased tremendously during recent years, mainly owing to top-dressing, clearing out rabbits, the adoption of more scientific methods, and irrigation, so that Otago has not felt the full force of the slump to 'the extent of other sheep farming provinces. The foilowing figures deal ing with the number of sheep and quantity of wool in Otago will illustrate the remarkable increase in production: — Sheep. Wool (lb). 1921 .. 2.782.483 16.510.066 1930 . . 4,074,223 25,369,061 Increase in 9 years—--1,291,740 8,858,995 The interim figures for 1931 show a still further increase. DAIRYING. GenerMly speaking. Otago is not a dairying province, yet we have large districts almost entirely given up to dairying. We have seven butter factories, with an annual output of 2700 tons, of which 690 tons arc exported, and 19 cheese factories, with an annual output of 2780 tons, of which 2580 tons are exported. Largely owing to herd testing and improved methods of farming, our dxiry farmers have managed to hold their own despite tb.e extremely low prices which have been obtainable this year—prices which would have meant bankruptcy but for the herd testing, etc. The returns are so low that dairy farmers have had nothing to spend for anything but the bare necessities of existence. Few,..if any. have been able to pay wages to sons and daughters assisting with the work of the farm. The following figures, showing the average price per lb paid to farmers for butter-fat. will serve to illustrate the extent to which the Otago dairy farmer has suffered by the

FATTEXIXG, During the last 10 years Otago’s export of sheep and lambs has steadily increased. During the killing season 1930-31 the three freezing works operating in Otago (at Burnside; Finegand, near Balclutha; and Pukeuri, near Oamaru) handled 114.229 sheep and 953,350 lambs. In addition to these, 309,695 sheep and lambs were railed into Canterbury for fattening or freezing purposes. The past year has been an extremely difficult one for farmers and freezing works alike. During each of the past three seasons prices have fluctuated considerably. but the following figures, show ing the price per head paid for fat lambs and wethers to farmers, give a fair indication of the position: —

By-products have also slumped considerably. and this has seriously affected the prices paid by the freezing works. The following figures give some indication of tho position:— PRIME MUTTON TALLOW. 1928- £33 to £34 per ton, f.o.b. 1929- —Steadily falling from £32 15s to £24 per ton, f.o.b. 1930- —Steadily falling from £2O 10s to £l7 per ton, f.o.b.

LAMB PELTS. 1928- .. 36s 6d per doz, f.o.b. 1929- .. 26s per doz, f.o.b. 1930- .. 9s to 13s 6d per doz, f.o.b. Other by-products have suffered even more seriously. Runners, for instance, are worth one-third to one-fifth of what they were worth during the 1928-29 season. CROPPING. Otago produces approximately . oneeighth of the wheat output of the Dominion. During the 1929-30 season 24,516 acres were sown in wheat, which produced 834.d41 bushels. The quality of the wheat produced in Otago is high, and it is eagerly sought after for milling purposes. Unfortunately, during this last two years, varied weather conditions have made the lot of the wheatfarmer uncertain, and although a payable pr.ee has been ruling for prime milling wheat, a good deal of wheat has been rejected for this purpose, and sold at lower prices. During the 1929-30 season the acreage devoted to cropping other than wheat was 204,066 acres, made up as follows: — . , Acres. Wheat for chaff and not harvested 293 Oats for threshing 17,540 Oats not harvested L 354 Oats for chaff, hay, or silage .. 38.402 Barley 4046 T eas 400 Beans .. j Linseed 74 Other grain crops 56 Lucerne 9.954 Green fodder (rape, etc.) .. .. 35,040 Potatoes 1,769 Turnips 99,’.551 Mangels 1.556 Onions .. 4 Other crops 16 In addition to this, 5643 acres of grass were cut for seed purposes, and 15,273 acres cut for hay’ or ensilage. Prices have been such as to discourage cropping other than wheat, and many farmers are now only sowing enough for their own requirements. The heavy importations of oats and chaff from Australia has killed the trade with the North Island, and resulted in a surplus of home-grown oats over and above local milling requirements. A very bad year has been experienced by the potato and grass seed grower, the prices ruling being below the cost of production.

FRUIT FARMING. Otago-grown fruit is second to none, and the climate in certain parts of Otago is ideal for apple and stone fruit growing. This year Otago exported 85.000 cases of apples, and although the final results are not yet to hand, cabled reports indicate that prices for the season will be reasonably satisfactory. BUSINESS CONDITIONS. The above few figures will give some indieation why Dunedin wholesalers and retailers are feeling the absence of purchasing power from the country. It has been said that the slump is largely psychological, but as this review does not enter into root causes, but merely records the local position, I will content myself by saying that there is nothing psychological about the absence of buying power in the country, nor in the absence of country orders in the town. Luxury trades such as the motor car and cycle trade, the jewellery’ trade, etc., have suffered very badly owing to the falling off of business. Drapers, tailors, etc., have had a very thin time. Stock firms financing farmers have suffered heavy losses. In ipany cases mortgagees have been unable to collect interest. The professions have also been hit very hard —the medical profession through the inability of many people to pay, the legal profession through the absence of conveyancing, and so on. Manufacturers have had to slacken up on production, and many businesses have had- to put off employees. In Dunedin alone it -is estimated that some 2000 families are in need of relief work, food, qnd clothing, so it is little wonder that grocers and other tradesmen are unable to get many of their accounts paid and that many landlords have been unable to collect rents. Town property has dropped considerably in value, mainly owing to the absence of buyers; building has been very slack, and this has reacted upon the hardware trade, indentors. etc. —classes which have been very heavily hit indeed.

The necessity to reduce stocks, possibly urgent pressure from banks to reduce overdrafts, and the desire to increase turnover, has led to intense' price-cutting on the part of certain individual firms. The old-style grocer running his own store has had a stern fight for existence against the “multiple” shop and “cash and carry ” newcomer. In summing up, it can be safely said that most farmers, many tradesmen and

business people, have suffffered a 50 per cent, cut in incomes—many have suffered more—many have lost a lifetime’s savings. Despite the obvious seriousness of the position, it is pleasing to record that both farmers and business men are in good heart, and a quiet spirit of optimism and determination to weather the slump prevails.. Signs are not lacking that the spirit of enterprise which animated our pioneer settlers still prevails in this province. During the year tenders have been let. and new companies have been successfully launched, and, generally speaking, Dunedin business men are energetically getting their share of whatever business is being done throughout the Dominion. Wherever one journeys throughout New Zealand one hears the saying: “ Business is more solid in Dunedin than anywhere else in the Dominion.” The prestige of our province is high—a prestige enhanced by the calibre of the men we have supplied to run many a business in the north. . Let us pin our faith for the future in the ability of our Otago farmers and business men to hold their own and win through.

slump:—Butter Cheese Factory Factory Season. Supplier. Supplier. s. <1. s. d. 1928-29 . . 1 5$ 1 83 1929-30 .. 1 33 1 71 1930-31 . . Oil 0 11-

Season. Lambs. Wethers. 1928-29 . . 28s to 30s 27s 1929-30 . . 21s to 22s 23s 1930-31 . . Ils to 16s Cd 12s to 14s