FARMING IN NEW ZEALAND

New Zealand Journal of Agriculture, Volume 71, Issue 6, 15 December 1945, Page 571

FARMING IN NEW ZEALAND

NEW Zealand is essentially a pastoral country, and as our main products come from the animal, wartime farming must be reviewed mainly on the efficiency, with which we managed our flocks and herds and met the changing demands for products as the war progressed. An appreciation of the Dominion’s agricultural war effort from this standpoint is contained in this article by P. W. Smallfield, Director, Rural Development Division.

• I <O understand fully the production TO understand problems of and administrative problems of the Dominion during the war years, some thought should first be given to the general set-up of. the primary industries prior to the war and the reasons why New Zealand has adopted certain farm management methods and concentrated on the production of dairy produce, meat, and wool. In the first place New Zealand is a pastoral country; of the 43 million acres in occupation, 31J million acres are in pasture of • various types and 1% million acres are devoted to annual crops, of which approximately half are cereals and half fodder crops. The pasture land and fodder crops support .33 million sheep (including nearly 21 million breeding ewes) and 4f million cattle (including If million milking cows). This pastoral set-up has developed in response to the demands of the United Kingdom , market, and our farm management methods are based largely on the breeding animal and milk-producing pastures. This combination of. grass and the breeding animal in our mild climate (obviating the heavy labour requirements, for stall feeding in the winter) and accompanied by the adoption of laboursaving machinery has enabled our dairy and meat export industries to be built up and maintained against competition by our high output per unit of labour. For instance, under our grass-farming methods, one man can milk, feed, and manage a herd of 25 to 35 cows, a man and a boy a herd of 50 to 60 cows, two men 70 to 80 cows, and three men 100 to 110

cows, or in fat lamb production one man can look after. 750 to 1,000 ewes. In general our farms are specialised,, and with permanent labour fully employed at the main enterprises, sidelines are not popular. For instance, a dairy farmer can manage a certain amount of pig-keeping work, but for a considerable increase in output it would , require more time than he could spare, and production to the level of full employment for an additional man would result in a reduction in production from the main enterprise because of competition of the two activities for the use of land. It is this pastoral set-up which makes food production in the Dominion rather inelastic. Any marked increase in production on traditional lines would have required a greatly-increased pastoral area and increased numbers of livestock. At present the Dominion has already developed all the easiiy-cuitivatable lands and increases in production can only be obtained slowly as existing pastures are improved, livestock more adequately provided with suppletary feed, and new land of low " initial fertility gradually developed. Perhaps we can appreciate our own problems best by first considering what Great Britain did during the war to increase food production, as a contrast is often made between the food production efforts of the two countries. - Between 1939 and 1944 the area under annual crops in the United Kingdom increased by 6 million acres

(from 81 million acres to 14| million acres), while the area of permanent grass decreased by a like amount. Milking cows increased by 3 per cent., total cattle by 7J per cent., but sheep decreased by 25 per cent., pigs by 57 per cent., and poultry by 25 per cent. In short the United Kingdom, faced with the necessity of producing as much food as possible and providing a balanced diet, turned to cereal production in preference to sheep farming, maintained milk production, but reduced the numbers of pigs and poultry, whose feeding in pre-war years was largely dependent on imported grain. Such action was not required of New Zealand. At first we were asked for our traditional products of meat, wool, and dairy produce, and then later, after Japan entered the war, for additional products such as vegetables, potatoes, onions, fruits, and fibre. A review of wartime production is given in the following table (1): — Average of Average of Forecast - five five for seasons seasons 1945-46 1934-39. 1939-44. season, tons. tons. tons. (1) Butterfat 189,900 (5) 191,500 (5) 193,000 (2) Meat . . 470,000 (6) 526,000 537,500 (3) Wool ... 134,000 148,000 166,500 acres. acres. acres. (4) Area under chief CHsh crops .. 348,700 406,500 353,500 (1) Year ended July 31. (2) Year ended September 30. (3) Year ended July 30. (4) Wheat, oats, barley, maize, peas, and beans for threshing, potatoes and onions . outside boroughs. j (5) Owing to change in allowance of butterfat represented in milk and cream consumed, the total butterfat . figures given are higher than those quoted in previous .years. (6) Three seasons only: years ended June 30. (1) Adapted from annual report of the Director-General of the Department of Agriculture, 1945. "

—1 — PmSS'kbl H frar?-! tri ''

The Dominion supplied approximately the following quantities of foodstuffs to the United Kingdom and United States Governments ' during the six war years 1939-40 to 1944-45. Tons. Meat . . 2,100,000 Dairy produce 1,400,000 Fruit and vegetables . 170,000 Cereal foods . 75,000 Miscellaneous 55,000 3,800,000

Animal products have increased during the war years despite labour and fertiliser shortages, and the area under arable crops has been extended. Finally the Dominion’s war effort in food production is summarised in the following table, which shows the approximate quantities of foodstuffs supplied to the United Kingdom and United States- Governments during the six war years 1939-40 to 1944-45. Tons. Meat .. .. 2,100,000 Dairy produce .. .. 1,400,000 Fruit and vegetables .. 170,000 Cereal foods .. .. 75,000 Miscellaneous .. .. 55,000 ' Total .. .. 3,800,000 Preparation for War ■ The possibility of war was recognised after Munich, and steps were taken during the early part of 1939 to provide the necessary administrative machinery to cope with any emergency which might arise. Plans were made with the United Kingdom Government for the purchase of exportable foodstuffs from the Dominion and for the Marketing Department to be the authority in New Zealand for the bulk purchase and shipment of various food and other products. The Emergency Regulations Act was drafted, together with the regulations necessary to mobilise and control the full resources of the Dominion., The Primary Industries Emergency Regulations, 1939, and subsequent amendments covered the production and processing of all primary products. These regulations empowered the Primary . Industries Controller to direct the production and manufacture of primary products, to requisition land, buildings, machinery, and goods, and to ration and control essential supplies: in short to do almost anything which might be required in the interests of primary . production. Full powers of control have not been required or exercised as, for instance, they have been in Britain under similar regulations, where farmers have been directed to grow certain crops and where farmers have been removed from their farms for inefficiency. The chief controls exercised under these Emergency Regulations have been over the manufacture of butter and cheese so that the United Kingdom’s requirements for cheese could be met, over the sale of fat stock, seeds, and other essential : supplies such as machinery, wire, etc., and rationing and . manufacture of fertilisers. ' In addition to the framing of regulations the two most important steps taken to meet the war emergency were the setting up of committees to review the supplies of essential commodities and to set up Primary Pro-

duction Councils to bring the administration in direct contact with the individual farmer. ' For instance, the Commercial Advisory Committee, composed largely of representatives of the grain and produce trade, has advised the'Primary Industries Controller on the farmers’ requirements for essential supplies and has enabled the Controller to recommend the necessary export or import of goods so that only surpluses • above the Dominion’s requirements were exported and only essential supplies were imported. The Primary Production Councils served a very important function and were organised so that direct touch was .secured with individual farmers. District Councils were set up composed, partly of district committeemen and partly of representatives of other farming organisations and labour. Each district committee was composed of members who were in contact .with all the farmers in > the members’ locality. Finally a National Council representing the District Councils and farmers’ organisations advised the. Minister of Agriculture and the Primary Industries Controller on policy matters and directed the work of the District Councils. ' . The Primary Production Councils have done an immense amount of voluntary work in connection with man-power on farms, reporting on appeals for the Armed Forces Appeal Boards, estimating , labour requirements for harvesting and organising both voluntary and Army labour, organising drives for production, - rationing supplies of essential commodities such as fertilisers, gumboots, farm machinery, wire and wire netting, building materials, etc. Without such an organisation it would have been impossible to stimulate production, ration essential requirements, and provide the necessary farm labour.

September, 1939, to December, 1941 The first phase of the war was marked by adherence to traditional farming practice and by endeavours to increase production by better management and feeding of our flocks and herds. Shipping - difficulties .arose ■ fairly early in the war, but the erection of • additional cool ;? storage . space enabled the Dominion’s produce to be held until. ships ; were available. At the outbreak of war the Government had taken the necessary steps to ensure that as a condition of their slaughtering and export licences all freezing works should at. their own expense provide sufficient cool storage space for holding 60 per cent, of their average kill of meat; this resulted in the provision of an additional 3J million cubic feet, capable of holding 37,000 tons .of meat. In addition, shortly after the outbreak of war the Government arranged for the erection of an additional 4f- million cubic feet of cool storage capable of holding 51,000 tons of meat. This gave a total storage capacity for 250,000 tons of meat, excluding . freezer ' space which, would store a further 57,000 tons. Lamb and mutton carcasses were telescoped and ox and prime cow beef boned for shipment. The number of ports of loading were reduced and all possible steps taken to ensure that ships available were loaded to capacity and that cool storage space would bridge any foreseen gap in loadings. During the early seasons of the war bulk purchases were arranged with the United , Kingdom on a seasonal basis for butter, cheese, and meat. The contract for wool covered the 1939-40 season and succeeding wool clips during the war and for one season after. Tallow and processed milk were purchased on behalf of the United Kingdom Government and control was arranged for the sale of woolly sheep skins and hides.

Fertiliser

After Japan’s entry into the war in 1941 the Dominion’s normal source of supply of phosphate rock from Nauru and Ocean Islands for the manufacture of superphosphate was cut off and alternative sources of supply had to be secured, supplies being obtained from Florida, Makatea, and the Red Sea. Rock phosphate imports dropped from 250,000 tons in 1941 to slightly over 100,000 tons in 1942. Fertiliser rationing was introduced and the phosphate quarries at Clarendon, Otago, were reopened and supplied small quantities of rock for superphosphate manufacture as well as supplies of low-grade phosphates which were utilised in fertiliser mixtures. .[Photo at top left by Sparrow Industrial Pictures.

FOOD CROPS

During the 1939-40 season the export position was satisfactory and a clearance of accumulated meat from the previous seasons was made. Although no bulk purchase was arranged for apples, half a million cases were shipped. For the 1940-41 season contracts for the sale of produce were arranged generally as for the first season of the war, but increased production of cheese and smaller quantities of meat were asked for. Interference with the loading facilities at Nauru Island coupled with the sinking of phosphate supply ships made it impossible for the Dominion to obtain the full quantity of phosphate rock required, and it became evident that phosphatic fertilisers would have to be rationed. Consequently in June, 1941, the Phosphatic Fertiliser Control Notice was issued to ration available supplies of phosphatic fertiliser for topdressing and for crops. Later rationing . was extended to other fertilisers and continued throughout the war. Fertilisers, particularly phosphatic fertilisers, are of extreme importance in New Zealand- farming. Total fertiliser usage was about 500,000 tons prior to the depression in the thirties and dropped to 370,000 tons in 1934-35; usage rose again to 500,000 tons in 1936-37 and then steadily rose to 698,000 tons in 1940-41. After Japan’s entry into the war in 1941 our normal source of supply of phosphate rock from Nauru Island and Ocean Island for the manufacture of superphosphate was cut off and alternative sources of supply had to. be secured, supplies being obtained from Florida, Makatea, and the Red Sea. Rock phosphate imports dropped from over 250,000 tons in 1941 to slightly over 100,000 tons in 1942. ’ The assistance of the National Council of Primary Production was sought in defining a rationing schedule based on minimum phosphatic fertiliser requirements for each annual crop and a topdressing ration based on a percentage of previous usage. Committees had to be set up to deal with hardship cases. To make the fullest use of available supplies of phosphate attention was given to making the most efficient type of fertiliser. Normally superphosphate is the commonest phosphatic fertiliser used in New Zealand: the phosphate, being water soluble, is easily locked up in the soil. To lessen this loss of phosphates the National Council of Primary Production recommended the manufacture of serpentine superphosphate. This is manufactured by ' adding 1 part of ground serpentine rock to 3 parts of superphosphate, giving a magnesium instead of a calcium phosphate. In general, 1 cwt. of serpentine superphosphate gives equal results to lewt. of superphosphate.

To increase further the phosphate supplies the phosphate quarries at Clarendon, Otago, were re-opened and supplied small quantities of rock for superphosphate manufacture as well as supplies of. low-grade material which was utilised in fertiliser mixtures. December, 1941, to VJ Day With the entry of Japan into the war many new problems arose. Increased attention had to be paid to the production of food crops, and the Dominion was faced with increasing shortages of essential supplies, which were later largely overcome through lend-lease aid. ' - Shortage of . labour on farms, which was a limiting factor in production throughout the war, became acute soon after Japan’s entry into the war. Farm work is a skilled occupation, and particularly so in New Zealand, where livestock are so important. Labour. difficulties in many industries important in the war effort were overcome by declaring them essential; thus labour could be directed to them, and employees could not leave or be discharged without the approval of the National Service Department. Farm labour shortages could not be overcome in this way: the farmer and his employees either live together or live in such close' contact that control as with other essential industries was not possible. The policy through the war was to retain essential workers on farms and arrange for the placing of volunteer workers. After the war situation in the Pacific became less acute men were returned from the forces for farm work and women recruited for land work.

Primary Production Councils played an important part in assisting the National Service Department and the Armed Forces Appeal Boards in seeing that farms were adequately staffed as far as permanent workers were concerned. For ‘harvesting other steps had to be taken. Army labour was first used in the cereal harvests in the South Island in the autumn of 1943 and extended in the following year to the hay and silage harvests in the North Island. The work was organised through the Primary Production Councils. .. The rationing of many farm requisites such as imported farm machinery, tractors, fencing wire, wire netting, gumboots, etc., became necessary after Japan’s entry into the war. This work was done by the Department of Agriculture through Primary Production Councils, who nominated priorities so that supplies could be distributed to farmers who would make the best use of them. During the 1941-42 season, which marked the entry of Japan into the war, the annual contracts which were made with the United Kingdom made provision for purchase of produce whether shipped or unshipped, for the accumulation of butter, • cheese, and meat were giving some concern, while New Zealand agreed to make every effort to adapt production to shipping possibilities. During the ‘ 1942-43 season the production programme was modified to meet the new demands created by the Pacific war. Approval was given by the United Kingdom Government to the release of meat and dairy produce required by the United States forces. With the mobilisation of the . Dominion’s forces

and the demands of the United States forces increased production of vegetable and food crops was required. The United Kingdom now required more butter and less cheese and a change-over in manufacture was arranged. z The 1943-44 season was marked by the introduction of butter and meat rationing in the Dominion and by arrangements for long-term contracts with the United Kingdom for the purchase of exportable surpluses of butter, cheese, and meat for the years 194448. Increased efforts were made to expand food production, particularly dehydrated and fresh vegetables?- for the United States forges in the Pacific as well as meat and dairy produce for the United Kingdom. The last season of the war was marked by unfavourable weather conditions for the harvesting and sowing of cereals, and con-

siderable importations of wheat were necessary." Two other important features of this period must be mentioned: the policy . of economic stabilisation and the Servicemen’s Settlement and Land Sales Act, 1943. On December 15, 1942, the Prime Minister broadcast an address on economic stabilisation outlining the Government’s policy to prevent inflation. In September, 1939, all prices had been brought under control through the Price . Tribunal • and in September, 1941, 38 of the more important commodities entering into the cost of living were stabilised. Further steps were then taken to stabilise additional commodities and wages; an agreement was entered into with the Farmers’ Federation for farm products stabilisation accounts to be kept by the Marketing Department and provision made for consultation - with

various sections of the primary industries for any necessary price adjustments to meet increased costs. With our system of easy transfer of land increased prices are quickly reflected in increased land values, and > there is no doubt that the passing of the Servicemen’s Settlement and Land Sales Act, 1943, was of great importance lin the policy of stabilisation. This very important Actdeals with two distinct though related problems, the acquisition of lands for soldier settlement and the control of land sales. The sensitivity of land values to an expectation of increased prices of farm products or indeed. to inflationary finance is notorious; the land boom in 1920 is a case in point, as is also , the land boom in the seventies. With the present abundant purchasing power, the restricted market for many commodities, and the demand for land for soldier settlement, it is at once apparent that land values would, have risen to very inflated values without this act. (1).. Butter and Cheese In the three seasons preceding the war (1936-37, 1937-38, and 1938-39) production of creamery, whey, and farm butter averaged about 164,900 tons; export accounted for 136,400 tons and local consumption for 28,500 tons. In the same period cheese production averaged 88,300 tons; export accounted for 84,600 tons and local consumption for 3,700 tons. During the war an increase in cheese manufacture was first undertaken and then a change was made back to butter. Because of the possibility of a shortage of refrigerated shipping, a survey was carried out in September, 1939, to measure the possibility of making more cheese and less butter. In June, 1940, a second survey was carried out following the receipt of a request from the United Kingdom Government for an increase of 15,000 tons of cheese at the expense of butter' and subsequently a request for the greatest possible maximum production of cheese; after investigation this possible production was placed at 165,000 tons. To enable this change-over to take place it was necessary to direct (Dairy Supply Control Order, 1940) suppliers to change over from the supply of cream for buttermaking to the supply of milk to cheese factories. It was also necessary to provide the cans and transport for handling the whole milk, the necessary vats and other ap- - pliances at factories, and houses for workers. This entailed between 1940 ' and 1942 an additional 2 million ton freight miles in cartage, the provision of 13,000 milk cans, 139 cheese vats, the equipment of 23 buildings as (1) “Land Legislation in New Zealand,” F. R. Bray, Journal of Agriculture, September, . 1945.

cheese factories and the working of double shifts at 72 factories, as well as making important demands on the Department’s staff in the work of grading, supervising the change-over, and payment ,of subsidies. The responsibility. ±or the cost of the equipment required was accepted by the Government and amounted to £94,000. In the change-over the numbers of suppliers and cows involved were as follows: ■ Suppliers. Cows. 1940- .. .. 1,850 92,500 1941- .. • .. 4,318 181,000 6,168 273,500 In 1942 a change was made back to the manufacture of butter and the Dairy Supply Control Order (July, 1942) required all suppliers changed over to cheese under the 1940 and 1941 orders to revert to the supply of cream; . . - . . Dehydration was used to find a way for the disposal of whey and'secondgrade creamery butter which were excluded from shipment in the earlier years of the war, and in the 1941-42 season a contract was made for the supply of 10,000 tons of dehydrated butter. A plant under the direction of the Internal Marketing Division was in operation for the greater part of the 1942-43 season and was able to treat accumulated stocks of whey butter of the 1941-42. season . and also whey and second-grade creamery butter produced in the 1942-43 season. During the 1942-43 season 2,980 tons were manufactured and a request was made by the United Kingdom Government for the erection of plants to dehydrate 35,000 to 40,000 tons per annum. This request was later annulled, and with subsequent improvement in shipping whey and secondgrade creamery. butter - were included in the United Kingdom bulk butter purchases. \ . The manufacture of butter > and cheese during the war has been as follows: —• Total butter. .Total cheese. Tons. Tons. 1939- .. 161,000 97,800 1940- .. 167,800 122,400 1941- .. 135,900 157,400 1942- .. 144,000 101,700 1943- .. 139,500 91,700 1944- .. 158,500 104,000 Dairy cows in milk in the 1939-40 season at the outbreak of war numbered 1,740,000; the highest figure during the war was reached in the 194041 season, with 1,780,000 cows in milk. Numbers-subsequently dropped •to 1,669,000 in the 1943-44 season, and were estimated to be 1,700,000 for .the 1944-45 season. , Considering the labour and fertiliser shortages, it is really remarkable that the dairy industry;has maintained such a high level of production during the war.

Meat The Dominion produces about half a million tons of meat annually, of which about 65 per cent, is exported and 35 . per cent, consumed locally. Omitting offals, the average production for the three seasons immediately preceding the war was 456,800 tons (offals amount to 14,000 to 16,000 tons per year and are included in the, total meat figure (470,000 tons) in the table in the first section), and in the following seasons production (omitting offals) has been as follows: — Tons. 1939- •• •• 519,000 1940- ... .. 502,000 1941- .. .. ... 520,000 1942- 521,800 1943- .. .. .. 493,000 1944- .. .. .. 522,000 The proportionate production of lamb, beef, mutton, pig-meat, and veal is shown in the following table, which details the production for the 1942-43 season (ended September 30) : Class of. For For Total meat. export. local use. - produced. Tons. Tons. Tons. Beef .. 87,500 84,800 172,300 Mutton .. 53,200 - 61,800 115,000 Lamb .. 162,600 9,900 172,500 Pig-meat .. 14,300 ' 27,200* 41,500 Veal .. 14,400 6,100 20,500 332,000 189,800 521,800 * Abnormally high; usually about 20,000 tons. The main features of the meat industry. during the war have been the ready clearance of much of the heavyweight mutton and second-grade beef, which was an embarrassment in the immediate pre-war years, the increase in canning, the development of a dehydration plant, the control and rationalisation of the buying of fat stock, and the variation of weight schedules and prices to conform to the demand for heavier slaughter weights. ~ . Canning and dehydration of meat helped to conserve meat which otherwise might have been wasted during periods of acute shipping shortage. Early in.. the 1940-41 -season it became obvious that New Zealand should assist in the disposal of meat available for export by canning to the maximum of existing plants and should

also extend' canning facilities. Contracts for the supply of canned .meat were arranged with the United Kingdom Government and later with the United States Joint Purchasing Board. A meat dehydration- plant erected at the request of the Ministry of Food came into operation in March, 1943, and ceased production in September, 1944. ' ■ .... / ... ■ The meat industry has definitely -> expanded during the war: sheep numbers are higher than they have ever been and the only decline . has been in pig-meat production, which is mainly accounted for by labour difficulties on dairy farms and certain other factors which are worthy of reference, as they illustrate some of the difficulties experienced in the war production of foodstuffs. At the commencement of the war the United Kingdom Government agreed to purchase all New Zealand’s exportable surplus of meat products, but until the occupation of Denmark by Germany there was no exceptional demand for pig -meats. When Denmark was occupied the United Kingdom requested increased production from New Zealand. Producers responded by increasing their output to over 1,005,000 carcasses in 1941, compared with . the 872,000 carcasses of the previous season. At this stage, because of the necessity of conserving shipping, an' effort was made by the United Kingdom to secure such increases as were necessary from Canada and the United States of America, on account of the much shorter haul. Consequently the New Zealand Government was informed that the export of pig-meats from New Zealand , was no longer required by the United' Kingdom, and the industry was advised to this effect. Again, the change-over from butter to cheese in the following year and the change back again 12 months later from cheese to butter compliance with the British - Government’s requirements—gave a general feeling of instability _ and uncertainty to the pig industry. These unavoidable factors

With the entry of Japan into the war / attention had to be paid to ; increasing production of food crops. The pea acreage was raised from 19,000 to ■ 45,000 acres, potatoes ' from 15,000 to 30,000 acres, and onions from 900 to 2,000 acres.

were caused solely by the development of the war situation. With the spread of the war to the Pacific a revision of the policy was again necessary, and the industry was advised that there was an urgent and very substantial demand for pig-meats. However, it was not easy to recover lost. ground. Producers had withheld sows from the boar, with the result that production fell in 1942 to 926,000 carcasses, to 767,000 in 1943, and to the low level of 741,000 for the season ended September, 1944. Another factor affecting the industry has been the general shortage of labour on farms, coupled with ~ the unfavourable seasons in many parts, of the Dominion. This led to a limitation of winter feed supplies, which resulted in the inability of producers to carry the usual supply ■ of store pigs through the winter. In order to arrest the decline in pig production the schedule for pigmeats was increased, and an effort was made early in 1943 to -import feed from Australia to make good the deficit caused by local drought conditions. Shipping difficulties delayed the arrival of these essential feed supplies until they were too late to affect the position. . In the-following year drought conditions in Australia debarred New Zealand from obtaining any stock feeds from this source, and this led to the introduction of the £5 per acre crop subsidy scheme, for winter pig feed. To assist further the fulfilling of contracts to the United States Joint Purchasing Board a prohibition was placed on the sale of fresh, frozen, and cooked pork in 1942, and a ceiling was placed on the civilian 'consumption of bacon. All bacon-curers were registered, . and a sales quota was established for each curer. The price of pigs was fixed by regulation, and this necessitated the introduction of a quota scheme for the disposal of bacon carcasses among operators, to ensure that. each curing establishment received sufficient pigs to fulfil its contracts for pig-meats to the United States Joint Purchasing Board for the Allied forces in the Pacific. . The weight ranges and schedule prices for pigs have been subject to several alterations. In 1943 schedules were increased for both- pork and bacon, and a winter price was brought into force, operating from June to October inclusive, which further increased the price for all pigs during this period, to give encouragement to producers to carry more pigs during the winter. Early in 1944 the weight range for all pigs was again altered, to give greater coverage, porkers being accepted from the low weight of 401 b. The . schedule for baconers was raised to include weights up to 2001 b. Under normal trading practice carcasses

under 601 b. or over 1701 b. are not desirable for local or export requirements, but the serious decline in pigmeats made these alterations necessary, in an endeavour to increase the tonnage of pig-meat produced. These measures have been responsible for an increase in bacon pigs,, killings of which , are nearly twice those of the pre-war period, so that, on . a tonnage basis, the decrease is not so serious. Meat inspection is one of the important duties of the Department of Agriculture. During the war the United Kingdom Government insisted on the maintenance of pre-war standards of meat inspection, and when the United States of America entered the war and supplies for troops in the Pacific war zone were obtained from New Zealand .a : similar standard was rightly demanded. This threw a big strain on - the meat inspection staff, but the position was met by the acquisition of a ‘'‘wartime staff,” all of whom performed - their important duties in a particularly satisfactory manner. ' ■ . ' ■ Wool Wool production has increased during the war; for the three seasons immediately prior to the war the average greasy wool production amounted to. 309. million pounds, and thence rose as follows: Season. Million lb. 1939- .. .. .. 310 1940- .. '.. .. 332 1941- .. .. .. 345 • 1942-43 .. .. .. 340 1943- 330 1944- .... .... 350 Prior to the war local woollen mills used only about 7J million pounds of

wool, but during the war consumption reached 161 million pounds. The wool . industry was not in a particularly buoyant position in the immediate pre-war years and a Royal Commission on the sheep-farming industry was sitting when war broke out. Immediately war was declared Great Britain agreed to purchase the whole of the Dominion’s wool clip for the duration of the war and one season thereafter. The price to be paid to the grower was fixed at an overall average price of 12.25 d. per lb. for greasy wool. To implement this agreement the , appraisement scheme was immediately got under way, which had a precedent in the “Commandeer” Scheme, 1916-1920. During this period the necessary details had been worked out and thoroughly tested, so that a minimum amount of trial and error was required on the present acquisition of the New Zealand clip by the United Kingdom. - ' . . A staff had to be found at very short notice to carry out the valuing or appraisal of the whole clip and the clerical work connected with it. Shipping and storage of wool have presented many difficulties, and at present there is an accumulation of wool in this country amounting to approximately 370,000,0001 b. .. Sheep fanners are now assured of a continuation of the Appraisement Scheme and present prices for the 1945-46 season. (After that the new Joint Organisation Scheme is to come into operation ' with the object of disposing of the present large accumulation along with hew clips as they come to hand each year. The aim is to stabilise prices by fixing a

minimum reserve below which wool will be withdrawn from the market. Assuming reasonable stability in the price levels of commodities generally, wide fluctuations both during the season and from one season to another can be avoided by the general measures of adequate offerings and reserve prices. It is expected that it will take 12 to 13 years to clear all surplus stocks. Cereal and Pulse Crops In the five pre-war seasons theaverage area under cereals and pulse crops for threshing was 326,000 acres, . while in the first five war years the average was 384,900 acres. New Zealand is not /self-supporting in cereals, and apart from wheat the Dominion annually imports considerable quantities of barley, maize, pollard, and bran for stock feeding, the quantities being 30,000 tons in 1938, 50,000 tons in 1939, 42,000 tons in 1940, 23,000 in 1941, with a drop to 20,000 tons in 1944. The lack of adequate supplies of grain and concentrates . for stock feeding necessitated the introduction of rationing and the granting of priorities to essential users. *" AREA UNDER CEREAL AND PULSE CROPS FOR THRESHING. Average of Average of Forecast five five • 1944-45 seasons seasons season.Crop. 1934-39. 1939-44. (acres) (acres) (acres) Wheat .. 214,200 255,900 . 184,000 Oats .. .. 63,400 57,700 50,000 Barley .. .. 22,400 30,000 . 36,000 Maize .. .. 6,900 8,100 5,000 Peas and beans .19,100 . 33,200 45,000 326,000 384,900 . 320,000 Wheat acreages in the five pre-war seasons averaged 214,000. . Increased production occurred in the first five war harvests, varying from 233,000 to 287,000 acres. The, area for the 1945 harvest dropped to about 184,000 acres, and less is anticipated for 1946. These decreases are primarily due to adverse weather at sowing time, and necessitated large imports during 1945, and the same position is likely to occur in 1946. Increased prices have been paid for wheat as costs have risen. One interesting feature of wheat pro- . duction during the war has been the wide use made of header harvesters in reducing the labour requirement for harvesting. In the five pre-war seasons the average area in oats for'threshing was 63,400 acres, and during the war the area fell to 40,000 acres in 1944 and 50,000 acres in 1945. Shortage of feed oats in 1944 led to importation from Australia, but the position is now reversed, with surpluses available here for export. The area under oats for chaff has also declined over the last 10 years.

Oats are grown for milling and for horse and stock feed, and one of the reasons for decline in oat production has been the mechanisation of farming. The use of horses is declining and ■ agricultural tractors are increas- • ing at the rate of 3,000 per annum. The fixation of prices for oats has proved difficult. The price of milling oats has been controlled, but feed oats and chaff have been left free, for it is very difficult to fix a standard for feed oats and chaff. Barley is grown for brewing and for feed, but production in the Dominion is normally below domestic requirements. The average barley . area for the five pre-war years was 22,400 acres for threshing, and during the war it has risen as high as 37,000 acres. Prices for barley are controlled. In the five ‘ pre-war seasons the average area of maize for threshing was 6,900 acres: it rose to nearly 11,000 acres in . 1941, but since then has fallen to below 6,000 acres. Prices have been controlled in the last two to three, years. Supplies have been Very limited and in 1944 amounted to only about 25 per cent, of our requirements, and distribution has been controlled through the maize-marketing committee. ' The average area in peas and beans for threshing in the five pre-war seasons was 19,100 acres, and during the war has risen to 45,000 acres. The major increase has been in Blue Prussian peas, upon which heavy demands have been made for canning for the American 'forces and for export. Increased demands have also occurred for garden varieties and Partridge peas. Prices for peas have been uncontrolled and have increased appreciably over pre-war prices. Linen Flax , Linen flax was first grown on a commercial scale in 1940-41 as the result of an appeal from the United Kingdom Government when Eastern Europe was invaded. Linen flax production was a remarkable undertaking: in the first season 12,000 acres were grown and 11 factories established to process the crop. All the machinery was made in New Zealand and the staff - had to be collected and instructed in their work. In the following season 22,000 acres were grown and 17 . factories operated. In the last two seasons the acreage has fallen to about 10,000 as the need for fibre became less urgent. With the end of the contract with the United . Kingdom in sight, plans are now being laid to change over from a Government-operated industry to a Public Utility Corporation operating seven of the most efficient factories and growing up to 8,000 acres to produce sufficient fibre and tow for New Zealand’s spinning requirements.

Surpluses of seed led to the establishment of an oil extraction plant and this has resulted in an increase in the acreage of linseed for seed. The Dominion is now self-supporting for its linseed oil requirements. Phormium Tenax On : the entry of Japan into the war supplies of hard fibre (manila ' and sisal) were practically cut off and attention had to be given to the full use of Phormium tenax for the making of ropes for the Royal New Zealand and United States Navies ..operating in the Pacific. Up to that time only enough flax was being milled in the Dominion to supply the local market, and steps were immediately taken to increase output. A subsidy of up to £1 per ton on green leaf was given to millers to enable otherwise uneconomic stands to be cut and processed. At the same time the Government opened two mills, one at Westport and the other at Kerepehi, to help supply increasing quantities of fibre. Production of fibre in the early years of the war was about 3,500 tons, but was raised to 5,300 tons in 1943-44 and 5,700 tons in 1944-45. Seeds - - ' Before the war the Dominion had a considerable export trade in grass and clover seeds, but was dependent on imports for most of the fodder crop and garden seed requirements. Rape, kale, soft turnips, and swedes are very important fodder crops in the Dominion, and annually half a million acres are , sown in these crops. The possibility of war cutting off seed supplies was foreseen and steps taken to provide ,as far as possible for. the Dominion’s requirements. Prior to the war all swede and ' turnip ' seed

Labour Shortage of labour on farms, which was a limiting factor in production throughout the war, became acute soon after Japan’s entry. Army labour was used for cereal and hay and silage harvesting work and women workers played a ■ large part in the vegetable and fruit production programme.

Was imported from Great Britain, and with the threat of supplies being cut off the Department of Agriculture took Steps to ensure that sufficient seed Was produced locally to meet our requirements. This necessitated the commencement of virtually a new industry worth about £20,000 a year to the growers. The selection work necessitated in raising parent stocks has been undertaken by the Departtnent, which has also supervised the growing and distribution of the seed. Results to date indicate that with only four years’ experience the quality of the seed is at least equal to that of imported ' lines. Chou moellier and kale seed have been raised on similar lines to swede and turnip seed. Before the war a programme of rape seed production under Departmental certification had already been commenced, though half our requirements were still imported from Great Britain. Since the war we have produced more than enough rape seed for- our own needs and have actually exported up to 300 tons in one season to the United Kingdom. 1 T The production of grass and clover seeds has long - Deen an important industry in the Dominion, The trade in seeds has been greatly improved since the introduction of the Department of Agriculture’s certification scheme. During the war increased demand has arisen for these seeds from the United Kingdom, and in the last two seasons it has been necessary to introduce temporary export embargoes on certain items to ensure that the Dominion’s local requirements were satisfied. Prices have not been controlled and the increased demand has caused them to rise sharply. Production of white clover seed has doubled during the war, and there has been a considerable increase in production of red clover seed. Exports to the United Kingdom have greatly increased and very favourable reports have been received of the behaviour there of certified lines. It is hoped that this export market of grass and clover seed in the United Kingdom can be retained and expanded in the post-war years. Most of the vegetable and flower seeds required in the Dominion before the war were imported from U.S.A., Europe, and Australia. During the war imports had to be supplemented by Dominion-grown seed, and credit is due to the organisation of Dominion seed production. / Domestic production of vegetable seeds now amounts to 222,0001 b., while the import requirements are 122,0001 b. Potatoes and Onions The Dominion’s annual domestic requirement of potatoes is about 20,000

acres, and in the five pre-war seasons the average area was 21,900 acres. In the first two years of the war the area fell to 15,200 acres and a shortage resulted. After Japan’s entry into the war the area under potatoes was increased each year, until in 1944-45 30,000 acres were planted. With unfavourable autumn weather in 1945 the yield from potatoes fell below expectations, and it has been necessary to import from Australia to supplement local supplies, but the quantity supplied to the United States Joint Purchasing Board this season is in excess of the quantity now being imported. ■ " The area under onions was increased considerably towards the end of the war, and the estimated, area for 1944-45 is 2,000 acres. The average area for the five pre-war seasons was 800 acres and for the first five war years 900 acres. ■ Vegetables The shortage of labour during 194142 caused a scarcity of vegetables just at the time when demand was greatly increased. To supply" the vegetables for civilian and military requirements the. Government undertook vegetable production on leased land under the Services’ Vegetable Production Scheme and encouraged commercial production . by arranging contracts. .' ■ • The Services’ Vegetable production Scheme utilised, labour which could not be employed by commercial growers: women workers, very few of whom had had any experience, formed about half of the employees and a great deal of the harvesting was carried out with school children labour. The scheme was initiated in the winter of 1942 and all projects will be closed in the autumn of 1946. Over 5,000 acres were leased, of which 4,200 acres were cultivated. Production for the three seasons 1942-43 to 1944-45 amounted to 50,000 tons of vegetables. Approximately 1,000 persons were employed on the scheme at its height, and in February, 1944, when work was at its maximum, 1,292 persons were employed, of whom 686 were males, 499 females, and 107 boys and girls. This Services’ Vegetable Production Scheme was worked under very great difficulties, but fulfilled its purpose and provided large quantities of much-needed vegetables. Commercial vegetable production also increased by 4,000 acres during the war and growers increased by 600. The present acreage is 21,000 with 2,900 growers. Expansion . of commercial production has coincided with the easing of the labour position, the tapering off of S.V.P. production, and the increased demand for vegetables for dehydration and shipment to the American forces in the Pacific. Production for these purposes was secured by contracts arranged with the

growers by the Internal Marketing Division. .. . .To supply ' the demands of the American forces in the Pacific processing plants in the Dominion were greatly enlarged. Five dehydration plants were erected, canning facilities extended, and packing sheds erected to crate vegetables for export in a fresh condition under cool store. Most of this wartime processing plant will not be required in the post-war years. Fruit - There are approximately 20,000 acres devoted to fruit growing in the Dominion, and the average annual production of all fruits is approximately as follows: — 2,250,000 bushels of apples, 250,000 ” ” pears, 650,000 ” ” stone fruit, 75,000 ” ” lemons, 60,000 ” ” other citrus, and 1,460 tons of berry fruits (raspberries, loganberries, strawberries, passion fruit, etc.). The loss of the export market for apples and pears at the outbreak of war created a difficult marketing problem. Whereas prior to the war about 1J million cases of fruit were , exported annually and 1 million cases sold within , New Zealand, with, war conditions the whole of the crop had to be marketed within New Zealand. The Government arranged to purchase the whole apple and pear crop, which after inspection by officers of the Department of Agriculture was taken over by the Internal. Marketing Division for distribution and . sale. Prices have been controlled for apples and pears and most kinds of stone fruit. With the demands of the . Joint Purchasing Board since the entry of Japan into the war and the poor supply of Island fruit, all locally produced ’ fruit has been absorbed. Large quantities of apples have been dehydrated. Like the primary industries the fruit industry has had many difficulties to face during the war such as shortage of fertilisers, labour, and other requisites, but production throughout the war has been well maintained. \ Poultry Industry x A -. The maintenance of a satisfactory level of egg production during the war has been a very difficult problem. Eggs are produced by many types of poultry keepers, ranging from the suburban resident who keeps a few fowls and the farmer who keeps larger flocks to the commercial keeper who relies on the sale of eggs and breeding stock and table poultry for his living. No figures are available of the poultry population since the Census in 1936, but it is certain that numbers fell considerably in 1941 and 1942 due to shortage of labour both on commercial poultry , and other

farms. At the same time increasing quantities of eggs were required to meet both an increased civilian demand due to increased purchasing power, and the demands of the Armed Forces. The increased demand for eggs led to severe marketing problems, for with the price of eggs pegged at 1939 prices, eggs were diverted from the organised markets. Various steps were taken to improve the position: owners of large flocks liable for military service were held on appeal; loans were granted for the extension of poultry plants; an increase of 2d. per dozen on the wholesale price of all grades of eggs was permitted for the minimum price period during the “flush” season of eggs, and priority was given to poultry keepers to secure essential goods such as building materials and wire netting. In addition, a substantial grant was made . to Massey Agricultural College to expand their poultry , plant and a similar grant was made -to Lincoln College to establish a poultry, department. Both grants were made to encourage increased production during the war and to afford improved poultry training and research facilities after the war. In June, 1944, a subsidy of 3d. per dozen on all eggs passing through organised' and approved egg floors was granted—partly to encourage increased production, but also to attract eggs to these floors by offsetting the increased price obtained by producers when

making “gate sales.” During the 12 months following the granting of this subsidy an additional 3 1 million dozen eggs passed through the normal distributing egg floors as compared with the previous 12 months, and so helped to alleviate the marketing position to an appreciable extent. . Thus as a result of the increased egg production campaign and the increased price paid for eggs, there were marked indications of a revival in egg production. Unfortunately coincident with this revival came the Australian drought and the’ cessation of all supplies of poultry food from that country. This has caused a severe shortage of poultry food in New Zealand and has automatically slowed down the expansion of the poultry industry for the time being. Nevertheless, an improvement in the egg supply position has so far been maintained. Before the war no organised table poultry production existed in New Zealand and table poultry sold to the public, much of it inferior in quality, was -largely cull poultry from commercial farmsa by-product of the industry. . With the entry of America into the war and the arrival of American troops in New Zealand - there was an immediate increased demand for table poultry of a higher quality than previously obtainable. At the request of the United States authorities the Government established a table poultry plant for the production of small prime chickens which were processed

and packed to American standards. In addition, the United States Joint Purchasing Board called for other, classes of table birds, again of an improved standard and processed to their requirements. This has - > so far had a good effect upon New Zealand producers in that steps have already been taken in a number of centres, including Auckland, Wanganui, Hastings, and Christchurch, to process and market a better-class bird. ' Honey The beekeeping industry also has suffered from labour, transport, and other difficulties . during the war. There are over 6,500 registered beekeepers in New Zealand with about 130,000 registered hives. The industry’s production fluctuates from season to season, but is in the vicinity of 3,400 tons of honey and 102,0001 b. of beeswax. Under the marketing plan set up by the Government in December, 1938, a packing and sales depot was established for the voluntary use of beekeepers, and this scheme succeeded in stabilising the market for the sale of honey in the Dominion. During the war beekeepers have been obliged under the Honey Emergency Regulations to supply a certain percentage of their crop each year to' the central depot to meet wartime priorities.. The End of the War Much essential farm maintenance work was not carried out during the war because of shortage of labour and materials. Fencing, drainage, scrub cutting, and noxious weed eradication are among tne jobs which will require urgent attention as soon as labour and materials are freely available. The control of soil erosion and hillcountry pasture deterioration will have to receive urgent attention. Fertilisers will have to be used more freely on hill country, for the maintenance of our hill-country pasture is very important to the meat industry, as the extensive pastoral farms supply the fund of breeding and store stock which the intensive grazier uses for breeding and fattening stock for export. Although certain rehabilitation work is necessary, the Dominion farming industries are in a sound position at the end of the war, and given stability in prices and assured markets, our exports of primary produce will continue to . expand. LUCERNE ON THE FARM. Lucerne is a forage crop of such outstanding merits over a wide range of conditions that it should be used much more freely. Full cultural details are given in Bulletin No. 155, “Lucerne,” which is available at offices of the Department of Agriculture.