DAIRYING INDUSTRY.

Waikato Times, Volume 107, Issue 18026, 22 May 1930, Page 13

DAIRYING INDUSTRY.

REVIEW OF THE SEASON. INCREASE IN PRODUCTION. NEED FOR BETTER MARKETING. A review of the past season and a survey of the present position of the Dominion from, a farming point of view was given by the president of the Auckland branch of the New Zealand Farmers’ Union, Mr A. A. Ross, in his inaugural address ' at the opening of the conference of delegates this morning. “ Climatic conditions for the growth of grass have been very good for several seasons, and the one just closed was the best of the series,” declared Mr Ross. “ Coincident with several good seasons, and probably to some extent as a result of them, there has been a substantial increase in the number of livestock of the Dominion during the past five years. At the same time there has been a steady increase in production, culminating in figures which have again broken all records. Increase In Exports- “ Increase in production has meant a corresponding increase in exports, and for some time the value of imports lagged far behind until at one period there was a favourable balance of trade of over £12,000,000. Contrary to what economists lead us to expect this state of things did not have any beneficial effect. There has been a uniform tale of increasing stagnation in cities, and a steady increase in unemployment. One of the most striking results was the abnormal increase of fixed deposits in the banks. This meant that credit balances could 'not find profitable avenues of employment in the Dominion, and were being held in London. These credits have now disappeared, mainly to pay for increasing imports. “ We are now told that there is a danger of over-importation, and most authorities contend that in this danger there is sufficient justification for the recent increase in the bank overdraft rate. This may be so, but to the ordinary layman it seems quite unnecessary and bound to do more harm than good. It will increase general costs, retard production, and tend to decrease exports.”

Unemployment Insurance,

After traversing the rise'in the cost of local and national government, Mr Ross referred to unemployment insurance. “ I think we are all satisfied that unemployment should never be a serious problem in a partially developed country like New Zealand, and that it can be cured if proper measures are applied,” he said. “ There, can be no cure; until costs are reduced sufficiently to enable the natural industries of the country to expand and absorb the labour offering. The soundest proposal at the present time, notwithstanding the probability of direct loss in carrying it out, is the drafting of a sufficient number of suitable men', to break in unimproved land.” Mr Ross then dealt with detail's of production and prices of dairy produce and wool. “ Now that there is a serious fall in the prices of produce, the question of improved marketing conditions is again coming to the fore,” said Mr Ross. “ We have it oh excellent authority that buying of dairy prodhce is concentrated in the hands of a very few, and we know from what happened at the recent wool sales that it is comparatively easy for wool buyers to combine. It therefor-e behoves producers to meet combination with combination, so that marketing may be’ done on a fair and equitable basis. “ It is scarcely possible to affect retail prices on world markets, as our produce is only a small part of the whole and has to compete with substitutes, but it, should be possible to eliminate some of the costs of marketing and some of the speculators’ profits,” , '