PRICES FOR PRODUCE

Wanganui Chronicle, Volume 74, Issue 151, 29 June 1931, Page 9

PRICES FOR PRODUCE

SLIGHT RISE LIKELY i NEW ZEALAND’S POSITION NKLD TO RLDCCL COSTS AILAT TKADi: COM BL LUTON The opinion that the prices of New I Zealand’s principal products may be ex 1 peeled to improve slightly from now i onward, ami that the Dominion is . .ikcly to recover frum the •ump more j quickly than most other countries, will the possible exceptions of Scandinavia i and the Argentine, has been formed by i Mr A. Rowlands, formerly in charge of W. and R. Fletcher (New Zealand) Limited, Auckland, and of the Westficdd Freezing Company, Limited, and now associated with the same interests in London. However, Mr Rowlands does not expect that the high values of recent years will return, and ho believes that only by an energetic reduction ot the costs of production can New Zealand producers be assured of a working margin sufficient to keep them abreast of other countries competing for the trade of the United Kingdom. After an absence of five or six years Mr Rowlands returned to the Dominion i about two months ago, and has since seen every part of New Zealand. Hsaid he was greatly impressed with the ! progress made during his absence, particularly in the Auckland and Southland districts. The chief reason .for the

very wonderful improvement in the condition of the pastures in those districts was undoubtedly the growing practice of top-dressing. The productive capacity of the Waikato, and of the Auckland province generally had improved nut of all knowledge, and that development had reflected itself in a most gratifying way in the export returns from Auckland in both dairy produce and fat lambs. Promoting Fat Lamb Business Speaking of the fat lamb trade, Mr Rowlands claimed some credit for the work done by himself and the company’s representatives in the introduction of the Southdown ram, and types □f well-bred ewes. “1 remember the post-war days when the freezing -works liad practically nothing but beef to handle,’’ ho said, “and propaganda work was undertaken to promote the fat lamb business. The confidence then expressed in the future of the Auckland lamb business has been justified up to the hilt, and to-day Auckland district lambs have a very fine reputation in London.”

Mr Rowlands was responsible for arranging the Waikato and the Auckland agricultural and pastoral societies’ show lamb exhibits in London, and ho said he was delighted with the way in which the societies had co-operated to make what must have been such excellent competitive and educational exhibits iu the show grounds of the district, enabling his company to make the premier shows on Smithfield market. Mr Rowlands urged that the district should devise new and varied tests. Ho suggested the district should be divided into smaller areas, having a control competition at. Claudelands with a number of competitors from each area. He and his company would be glad to co-operate to make a success of such a competition and to give it I ‘a big splash” at the London end. South American Competition. Reference to the competition of other countries, particularly South America, was made by Mr Rowlauds. From, that area the volume of lambs had increased by 4,000,000 in the last five or six years, and, although New Zealand had increas- i ed its output, it had not held its rela I tive position. Australia was also swinging over to crossbreds and to the Down I sire, and lambs from that country were I improving very noticeably.

“It is clear the competition from both these sources of supply is going to be intense,” said Mr Rowlands. “New Zealand producers must realise that fact, and the further fact that over very large areas in New Zealand the virgin fertility of the soil has now been discounted. Top-dressing to keep up this fertility to a heavy item of cost, but, above everything, the New Zealand producer must keep up his volume of production and his relative position in the British market. To do so ho must overhaul with searching care every expense and overhead charge that affects his net return. That applies, of course, not only to lamb, but also to dairy produce. ’ ’ “Too Many Freezing Works.” The belief that very serious wastage and overlapping has grown up iu New Zealand, some of it in the magic name of co-operation, was expressed by Mr Rowlands. “How much co-operation,” he asked, “is there in allowing two, three or even more collecting waggons, for instance, to pass aloug the same road every morning, each of them with part-loads, each of them helping to increase the cost of the finished product i Such uneconomic competition also prevents the managers from giving proper supervision and criticism of the supplies. “In the same way New Zealand has too many freezing works, with much unnecessary overlapping and extra costs. Fat stock is railed long distances from one district to another, and contiguous factories are being kept in operation at huge expense for dealing with trifling quantities, thus tending to inflate the charges for everyone. In the old days the country, with its virgin fertility, could stand a lot. of such overlapping and wastage. To-day the competitiou of other countries makes some of those methods out-of-date and far too great a tax on the producer. “In other countries, where the freez ing and dairy business is handled in large volume through large units, the cost is reduced to a minimum,” added Mr Rowlands. “.Some freezing works in other parts of the world handle a greater tonnage than is put through a; dozen works iu New Zealand. Some of them even handle through one factory as much tonnage as is represented by the whole of New Zealand’s meat exports. Although those countries arc receiving less money for their meat, the difference in price is very nearly made up by the lower cost of operating the factories and transporting the meat to 1 /Ondon. Savings by Co-ordination. “The net return to the producer is in many eases very nearly as great, as the New Zealand farmer gets for his superior quality product. Under those circumstances the New Zealand farmer must see that his meat is carried over the railways efficiently and at. reason , able rates, that the freezing works are ■

operated to avoid all possible overlapping and wastage, and that freights arc on a basis comparable with other coun A further point was that all the byproducts of the dairying and freezing businesses had fallen to the lowest ebb touched for 15 or 20 years. As those by-products helped to pay for the factories, the difficulties of keeping down charges had been greatly increased by the disappointing prices received for such commodities as tallow, casings, fertilisers, hides, pelts and wool. If rates were not to be increased, better co ordination of effort between the various companies was absolutely necessary. In many' cases the economies which could be made bv co-ordination of working arrangements would represent more money than any individual firm would expect to receive as profit on its undertaking.