DREAM OF EXPANSION

Waipa Post, Volume 49, Issue 3504, 11 August 1934, Page 7

DREAM OF EXPANSION

AGRICULTURE'S PAST AND PRESENT. ABILITY TO LOWER COSTS. "Just a few years ago the possibilities ahead of New Zealand agriculture appeared to be limited only by our potentialities, which knowledge, based on experience, research and moderate capital, could easily bring into actuality," said Mr A. H. Cockayne, Assistant Director General of the Depart; ment of Agriculture, in an address at Palmerston North this week. "These potentialities still remain, and have even been increased, but whether they can in the early future be realised is a question which many dispute to-day, although they would not have done so a few years ago. "Two-thirds of New Zealand's 6<V 000,000 acres of lands are already occupied," added Mr Cockayne, "and there is not a great deal of the remaining third that, with present, knowledge is capable of truly economic development, although wide areas of pumice, gum and swamp lands still remain for successful settlement. Again, a good deal of the occupied land, notably that coming under the classification of unimproved, enters the submarginal category. There is not really more than about 25,000,000 acres of land in New Zealand that, can be developed in a more or less Intensive manner, and we must bear in mind that not more than 12,000,000 acres have a ploughing topography. Land incapable of being ploughed has, gen ally speaking, to be used for extensive rather than intensive production Our aggregate of ploughable land should be compared with the greater amount of such land in Great Britain. GRASS FARMING COUNT UV.

"We have some 19.000,000 kcres termed unimproved, over 17.0m).000 toting in grass and less than 2.000,000 in annual crops. Over half the latter is used to supplement grasp feeding for farm animals. It. can be seen that New Zealand is essentially a grass farming country, and, that being the case, live stock products naturally represent our staples. We could produce ordinary arable crops, such a? grains, m excess of our requirements, brt many other countries can do the same at a lower cost. There is, however. no country in the world wlore invnul products from the grass can be more cheaply produced, excluding for ill* moment any consideration of land values.

"Although handicapped by 12,000 miles of expensive transport to our main market, it is no wonder that we have become as far as export is concerned, almost, entirely a producer of animal products. On our 17.000,000 acres of sown grass and les than 1,000,000 acres of stock feeding crops we produce over 200,000 tons of butter fat, 400,000 tons of meat, and over 100.000 tons of wool. We have 2,000,000 dairy cows, 500.000 beef cows 17,000,000 ewes, and 100,000 sows. "Perhaps the most noticeable feature of almost the whole of our socalled unimproved land," continued Mr Cockayne, "is that it is capable of the production of very much greater quantities of animal products than at present. Even our improved land is in v. sta.te only of partial development. and with the realisation <■■- 'all production on these areas a doubling could easily take place very rapidly. THE SIGNIFICANT FEATURE.

"This could be well exemplified by the dairying industry. We have 2,000.000 cows, and, capitalising them fit £SO each this would mean £100,000,0(10 invested on our 5,000,000 acres of dairying land. These figures are merely being used by way of illustration. Eetter cows, better feed, and better management, three factor? within easy reach, could bring about an additional 1,200,000 cows, which would double production. "The extra capitalisation for these cows need not exceed £l6 per head (4 for better grass, £4 for fencing and watering, £4 for stock, and £4 for improvements and buildings), or, roughly, a capitalisation in all of £120,000,000. This would mean the production of an equivalent amount of butter fat to that, of to-day for an additional £120,000,000, an interest rate still of under Id per lb butter fat. "This ability to lower costs of production by increasing output has been the significant feature of our agricultural development, to date. It does not matter much what land cost, what is owed on it, or how much money is individually or nationally borrowed, because increased production can easily be made to carry the load without any future difficulty at all. Those were the days of our continuous expansion dream, coupled with the theory of unlimited markets for our produce. Almost within the twinkling of an eye the world cry has been raised "Reduce rather than increase production," and the whole basis on which our nerioult.ural possibilities rest is threatened, to be kicked from under us."