FERTILIZER COSTS

Southland Times, Issue 23840, 10 June 1939, Page 19

FERTILIZER COSTS

FARMERS AND COMPETITION FROM AUSTRALIA Addressing the ninth annual meeting of the Dominion Fertilizer Company. Limited, at Dunedin, this week, Mr R. G. Hudson, chairman, said, notwithstanding adverse factors, the company’s sales last year were the biggest in its history, with the exception of 1937-38. During the year they had used raw materials costing £126,209, while manufacturing wages totalled £31,361, The profit for the year was £15,783. “I am glad to say,” Mr Hudson added, “that our farmer friends are taking their problems in what I considered the right and the constructive manner. The quantitative restrictions on the export of mutton and lamb may be overcome if the quality of the produce is improved and, in particular, if a greater number of lambs is sent to the freezing works, milk-fed, direct from their mothers. To do this successfully it is imperative that pastures should be topdressed.” Mr Stuart Sim said that farmers were not in any way hostile toward the company. In Australia, however, a higher grade of superphosphate was being produced cheaper than that in New Zealand, and, as New Zealand farmers had to meet strong competition from across the Tasman, anything that the company could do to reduce their costs would be appreciated. The chairman explained that on the costs of manufacturing fertilizer in New Zealand the company could not bring the price any lower than it was at present. The Australian Government subsidized the production of fertilizer anti the working week was not restricted to 40 hours over there. However, he assured shareholders that the directors would give the matter their, consideration. The report was adopted and the dividend of 6 per cent, approved.