SHRINKAGE OF FLOCKS

Poverty Bay Herald, Volume LIX, Issue 17920, 26 October 1932, Page 2

SHRINKAGE OF FLOCKS

WARNING FROM MINISTER HEAVY OVER-SELLING EFFECT OF THE SLUMP (Parliamentary Reporter.) WELLINGTON, this day. Reference to the substantial shrinkage in the number of sheep depastured in the Dominion is matte by the Minister of Agriculture, the Hon. 0. E. Macmillan, in his preface to the annual report of the Department of Agriculture, now before the House. The over-selling of stock to meet the need for currency during the period of severe depression is held accountable for the shrinkage, and the Minister points out the natural consequence of decreased production in the early future. Air. Alacmilian is able to take a more optimistic view of the fruitgrowing industry, and foreshadows a further step in the process of making tins industry hear its own financial responsibilites. Passing reference is made by the Minister to trio necessity for keeping farmers effectively engaged in production, and to the steps taken by the Government for that purpose. “Perusal of the reports reveals a great volume of effective work for the betterment of the various agricultural industries, although handicapped by rigid economies necessitated hy tlie continued financial stringency,” states the Afitrjster. “The policy of the department in closely linking the advisory field services with its current scientific research work must largely be credited with the satisfactory results achieved.

•‘The maintenance of primary production at a high level generally, in face of abnormally difficult weather conditions which prevailed over large parts of the country during the season, is worthy of special note, bespeaking as il does the qualities of hard work, skill and tenacity shown by the great body of our farmers. The results were achieved, moreover, under the naturally depressing influences of low prices and declining returns. In too many cases the farmers’ best efforts havo been finable to bridge the gap between costs and receipts. BEARING THE BRUNT “Those sections of our pastoral industries represented by meat and wool are bearing the brunt of the price fall, and this is largely responsible for a disquieting feature of the present position. I refer to the marked shrinkage in the country’s sheep stocks during the pasttwo years. The extremely low price ol wool in particular lias led to heavy overselling ot sheep and lambs for the meat trade hy farmers who were compelled to realise, in tlio effort to meet, their financial commitments. The dairy industry, fortunately, has been hit less hard, and at present constitutes a particularly -valuable factor in the export trade, which forms such an essential part of the. Dominion’s financial structure.

The fruitgrowing industry continues to expand its commercial production, anil the results generally, aided by the support accordecf by the Government guarantee on exports of apples and pears, are most encouraging. Measures were taken this year to further safeguard the Government’s liability under the guarantee, at the same time strengthening the selfdependence of the industry, and it is proposed to carry this policy a step further during the coming season. “The Government is fully alive to the vital necessity of maintaining primary production and keeping farmers effectively on the land, and is employing all available resources for this purpose. Among special measures taken may be mentioned subsidies on fertiliser manufacture anil railage, and extended rural credit facilities, together with legislation for mortgagors’ relief and rent and interest reduction. The recently.launched small-farm plan is also largely designed for a similar end, and it is thus fitting that the Department of Agriculture should have been entrusted with the task of obtaining land and settling men under the schome. “The outlook is not without encouraging features. The reactions of the Imperial Economic Conference at Ottawa may bo expected to manifest themselves appreciably before Jong, and there is hope that'further developments on wider lines towards price-level restoration may follow. The generally-improved tone in the Alother-country is another favorable sign, and New Zealand agriculture will more than welcome any definite betterment in its great consuming market.”