Poverty Bay Herald PUBLISHED EVERY EVENING GISBORNE, THURSDAY, APRIL 17, 1930. WORLD CATTLE SHORTAGE

Poverty Bay Herald, Volume LV, Issue 17237, 17 April 1930, Page 6

Poverty Bay Herald PUBLISHED EVERY EVENING GISBORNE, THURSDAY, APRIL 17, 1930. WORLD CATTLE SHORTAGE

A few weeks ego a member of the British farmers' party called attention to what lie considered the poor quality of New Zealand beef. His allegations did not arouse such an outcry as might have been expected, or as would have been certain had his complaint been in regard to New»Zcaland butter or mutton, of the quality of which we are justly proud. It is true that excuses and explanations were made in several quarters, but the real fact is that since the serious decline in the price for beef shortly after the war the breeding of beef cattle has not been looked upon as such an important: branch of agriculture in the Dominion. Cattle are regarded more as necessary farm implements to bq used for clearing the country for sheep, which, of course, are far more profitable. New Zealand is not the only country which has relegated cattle breeding to a sphere of secondary importance; the trend, in fact, is world-wide, and it will not be until prices for beef more nearly approximate the cost of breeding and fattening it that any serious attempt is likely to be made to place the industry on a better footing. It is a remarkable paradox that prices for beef, in direct contravention of till the accepted laws of supply and demand, have recently shown a substantial decline. At present, it is not easy to obtain quotations in Poverty Bay, but it is understood that the best price now obtainable locally is tils for prime ox beef. A few weeks ago the. price was iiiis (id, and not for a long .time, certainly not within the past year, have prices been as low as those now ruling. Generally when there is a reduction in the price offered for any primary produce it is not difficult to ascribe a reason for it, but in the present instance it would seem, not merely that the producers are the victims of one of those market fluctuations which inevitably occur from .time to time, but that some factor is operating entirely contrary to conditions which are generally regarded as assessing the true value of all produce. Throughout the world to-day there is a decided shortage of cattle. The logical sequel to this would be an increase in prices; cm the contrary they have declined, and not only by a nominal amount, but by approximately 121 per cent. In recent years New Zealand's exports of beef have been largely transferred from England to the United States, not so much because of a lesser demand for beef in England as because the American buyers, faced with a shortage in their own country, are prepared to pay higher prices. Competition, however, has not been followed by .the seemingly natural corollary of an increased return to the producer. Since shortly after the war, the United States, once a large beef-exporting country, has ceased to breed sufficient cattle to feed its own huge population. In 1910 that country was depasturing no less than 7.'!,000, 000 head of cattle; by 192(5 slaughter for home requirements had reduced the total to (50,000,000; and the returns for last year show a still further decline to 57,500,000, the smallest number of beef cattle in the United States for half a century. The dwindling cattle population is not peculiar to America. Australian numbers show a decline of .15 per cent, since .1025; Canada is down by 400,000; and New Zealand has shown a continuous decrease during the past five or six years. The only remaining beef-producing country of importance is South America, and although no census is taken there a recent report stated that definite reductions in cattle numbers were apparent. Before and during the war the United States exported beef in large quantities, but now the position has been reversed and she is looking to Canada, New Zealand, and South America for sufficient. supplies to meet her domestic needs. Last year the United Slates imported no less than 120,00(1,OOOlbs. of beef, in addition to some 500,000 head of live cattle. The explanation of this fact is simple; American farmers having found that there is a greater demand for mutton and wool, and having lost heavily in the slump in beef values after the war, are running sheep on what formerly were the great cattle ranges of the west. A further effect of the heavy purchases by America abroad has been the depiction of cattle in England, much larger killings having been necessitated by the reduction of imports, which last year showed a decline of 1,000,000 cwt, or 19 per cent, compared with 1927. In tho light of these facts and ligui'os tho farmers of tho Dominion

might well give serious thought to the position. Clearly the present reduction in juices cannot be accounted for by the state of world supplies. What then is the explanation? It is inexplicable that while supplies are continuously decreasing, and the demand becoming more active and widespread, the producers should be asked to accept lower prices. Neither England nor America can make up their existing shortage indefinitely by slaughtering larger quantities of home cattle stocks, and the only alternative is to look for supplies to Now Zealand, Australia, and South America, countries whose production of beef is limited by little else than the prospect of realising reasonable prices for it. If we read the world position aright the time is not far distant when cattle farming will be on an entirely different position from that, which it is in to-day. That at the moment prices have taken a turn which is entirely inconsistent with market conditions is a point which it is impossible to explain, but it is inevitable that this position must ultimately adjust itself New Zealand farmers would be well advised to bear the position in mind and to recognise that in the not far distant future beef may again be an important factor in our primary industry, and, realising this, remember also the well-intentioned criticism of the recent English visitor. If it is true that, our beef cattle are deficient in quality every effort should be made to improve the standard. If the anticipated rise in values does not materialise no harm will have been done. On the other hand, if it should be found that the market for beef does take on a new aspect (lien the farmers will reap the benefit of extra care taken now, while those who in lean times have not allowed their herds to deteriorate will profit from their long-sighted policy.