Farming Costs

Southland Times, Issue 23444, 26 February 1938, Page 6

Farming Costs

At a meeting in Wellington on Thursday the Dominion executive of the Farmers’ Union endorsed a resolution put forward by the Southland provincial executive protesting against the “endless mounting” of costs. “Our claims and protests have previously been couched in moderate terms,” stated the resolution, “but since no notice is apparently taken of the economic disadvantages under which the farmer labours we . . . demand British justice for New Zealand’s most important industry.” “Demand” is a strong word to put to the Government, and perhaps not the best word; but farmers have certainly reason to feel a growing exasperation as the economic scales are tipped more and more heavily against them. The discussion by the Southland executive which culminated in the passing of the resolution of protest was prompted by the rise in freezing works costs. These costs, according to a recent estimate “on a conservative basis” by the chairman of the New Zealand Refrigerating Company (Mr W. H. E. Flint), have increased since the end of 1935 by £750,000 a year—a figure representing more than 8d a head on lambs and Is a head on sheep. These charges, of course, are being passed on to the farmer, but he can pass them no further, for, depending on overseas markets, he has no power to raise his returns proportionately, He must simply be content to receive a lower net price for his sheep and lambs at the freezing works—and that at a time when the values of wool, hides and other products have fallen considerably. Dairy producers have to meet only a relatively small part of this particular increase of £750,000; but they have had to face a precisely similar situation in their own industry. Their returns, it is true, are guaranteed; but their costs of production are not. These costs in the last two years have risen sharply; they have risen, in particular, since the prices for the current year were fixed. And they have risen largely as a result of Government action and Government policy. The process is one which must be halted, not only because it is unjust to the farmer, but because it is injurious to the whole community. The Dominion cannot afford to discriminate against the very industries which are the source of its livelihood and prosperity.