Grassland Association Conference at Ruakura

New Zealand Journal of Agriculture, Volume 95, Issue 6, 16 December 1957, Page 530

Grassland Association Conference at Ruakura

By

G. J. NEALE

AN American farmer who, overwhelmed with a flood of information from agricultural extension agencies, pleaded with them to stop sending him advice on how to improve his farm, as "I don't farm so well now as I know how", was quoted by Mr. E. J. Fawcett, Director-General of Agriculture, in his opening address to the 9th conference of the New Zealand Grassland Association held in the new conference hall at the Department of Agriculture's Ruakura Animal Research Station, Hamilton, in October. Mr. Fawcett suggestion that the same admission might be made by many New Zealand farmers seemed to be borne out by the marked decline in farmer interest in this conference.

THE Grassland Association’s conference programmes have always been designed to encourage full farmer participation, and for several years past enrolments of farmers for conferences at other centres have comprised a large proportion of the Association’s membership. The advisory services of the Department of Agriculture, supplemented by the annual Farmers’ Conference Week at the Ruakura Station, the extension services of the highly organised dairy industry in the Waikato, and the operations of several farm improvement clubs there, might be keeping local farmers as up-to-date with their farming knowledge as they feel they need to be. Two Basic Animals Introduced by the Association’s president, Mr. S. H. Saxby, as one of the 29 people who attended a meeting in 1931 that led to the formation of the Grassland Association, Mr. Fawcett, who is to retire from the Director-Generalship of the Department of Agriculture at the end of this year, said he hoped it would be appropriate if at the end of his service he did a “little rambling over the years”.

The Association, in its work and at its conferences, had carried out the principles of one of its founding members and his predecessor in office, Mr. A. H. Cockayne, said Mr. Fawcett. Mr. Cockayne had said that there were

only two animals with which the grassland worker need concern himself, the milking cow and the ewe. If as much pasture as possible were grown and fed to these two animals to their maximum capacity, production must go up. Since the Association was formed in 1933 the number of cows milked had increased by 33 per cent, and the number of ewes by 55 per cent. Efficiency of their utilisation of feed had also increased, but how much of this was due to breeding and how much to feeding he was not prepared to say. Many practical farmers held that what they put into their animals governed what they took out. Some of the 90 per cent, increase in wool production was due to the breeding of better woolled sheep. Since 1931 values of exports had increased as follows: Dairy products, 400 per cent.; meat, 600 per cent.; and wool 1500 per cent. Vulnerability of Markets “Much of our prosperity today is due to the price structure of our export trade rather than to increase in volume of production,” said Mr. Fawcett. “In the last 8 or 9 years 15 per cent, only of the increase in our overseas earnings has been due to volume and 85 per cent, to price. This cannot be stressed too strongly as an indication of our vulnerability, de-

pendent as we are on the prosperity of overseas consumers.” The increases in production had been attained principally by efficiency of pasture production and stock management, but a multiplicity of other agencies contributed, such as the scientist, the extension worker, and the farmer himself, who had had to become perhaps the greatest scientist of the lot. The influence of commercial firms should not be overlooked. They had been the bankers of New Zealand farmers, particularly in the early years, and through their drive had contributed tremendously to the development of the farming industry. Scientists and extension workers should not be too complacent about the improvements effected, as they were not the only agencies responsible. Associated with increased production there had been an intensification of many types of diseases, some of them associated with improved pastures, and work on animal health problems was becoming more and more important. Export Market Problems “We are moving gradually away from problems of food

production to problems of how to dispose of it,” said Mr. Fawcett. “There is no question that we have the knowledge to continue to increase production and to have surpluses for sale, but the problems of disposal are in many ways more difficult. We are told that people of many nations are underfed,

but in our historic markets where we can still sell at prices that enable us to meet our standards of living, supply is meeting demand. In the long run these markets where people are in the main underfed are those on which we will have to depend. Therefore, improvement in the living standards of ■ -i the so-called backward nations is of great importance to us. “We can produce the goods and are producing them; our production potential was never better. We are fortunate that wool is such an important commodity in international markets. Returns from the wool clip have saved the situation regarding our overseas balances time and again, and there should be no serious fall in wool prices in the foreseeable future.” Markets for Beef The United Kingdom, said Mr. Fawcett, was the main market for beef and always would be, but consumption there was not going up materially and had just passed the pre-war per head figure. There was no question that consumption at

prices people could afford to pay was limited. Britain herself was encouraging more and more home production. Meat and dairy produce had been the main items discussed by the New Zealand trade mission to Britain earlier this year, and an Australian mission had followed shortly afterward to discuss the same subjects. It had subsequently been shown that the New Zealand mission’s estimate of the forward supply and demand position in the United Kingdom had been very accurate, and though there appeared to be no immediate cause for alarm, there would undoubtedly be a threat to New Zealand’s meat industry in the next 5 or 6 years from the Argentine. Both New Zealand and Australia had asked for protection by revision of terms of the Ottawa Agreement, but both had been declined by the United Kingdom authorities, who considered there was no cause for alarm. “With Australia and New Zealand both concerned,” said Mr. Fawcett, “it becomes necessary to look for outside markets. Markets outside the United Kingdom have taken 60,000 to 70,000 tons of beef this year. A few years ago a large quantity was sold to the U.S.S.R., but none has been sold there since. This year Japan has taken 8000 to 9000 tons. Whether this trade is sporadic we do not know, but with shipping to the East becoming available and an upsurge in the demand for meat in eastern countries, there is hope that there may be a permanent market there, but that entails reciprocal trade.” Of extreme importance to the dairy industry was the sale to the United States this year of 13,000 to 14,000 tons of boneless beef at £56 more a ton than would have been realised on the normal market. If the whole of this class of meat could be sold to the United States, it would mean £lj million to £2 million more to New Zealand dairy farmers than they would otherwise get. The New Zealand Meat Producers Board’s action in sending him to the United States to investigate complaints about packing of the meat sent there was to be highly commended, said Mr. Fawcett. He had got a sound grounding on what was required in the United States and the recommendations he had made on his return should ensure that packing troubles would be overcome and the market assured. Boneless beef was in tremendous demand in America for all sorts of processed meats and the demand was rising rapidly as outdoor eating became more popular. The demand

was encouraged by the manufacturers of barbecue outfits for use in the house, the back garden, the motor launch, or caravan. There was advocacy from time to time that New Zealand should get into the lamb trade in the United States. A good trade in carcass lamb was being built up there, but the United States stipulated that carcasses should be thawed out and as there were no facilities for refreezing, that particular trade had to be closed. A great deal was heard about the big business in prepacked lamb and fancy meat packs in the United States. Such business in beef cuts was a good one. Americans by and large did not eat frozen meat. It was remarkable that every New Zealander said New Zealand frozen lamb was the best in the world, but he would not eat it himself; nor would the American. Eighty per cent, of the meat bought by the public in the United States was sold by the super markets. There was no family butcher as he was known in New Zealand. To get frozen cuts into United States households would entail sale through one of the super market enterprises. Mr. Fawcett thought that this business might come gradually for the New Zealand producer, particularly as quick-freeze compartments were included in every refrigerating unit in American households. Butter and Cheese Markets for New Zealand’s dairy produce were of tremendous value and

a tremendous worry, said Mr. Fawcett. Total consumption of fats in the United Kingdom was high. To get a greater share of that consumption for butter, margarine had to be fought. “It becomes a very delicate operation to determine how near parity with margarine we can go, and that finally will determine our share of the market. A differential of somewhere between Bd. and 9d. with margarine appears to be as near as we can go.” Supplies of butter available to the United Kingdom market were increasing from New Zealand, Australia, and from time to time from Continental sources, though much of the last was sporadic. Liquid milk produced in the United Kingdom was bought by the Milk Board and its volume had increased tremendously. The balance not used in liquid form was put into manufacture, the returns from which were pooled with those from liquid milk and spread over the whole production. This pooling of returns from liquid milk, cheese, and butter did not materially reduce the over-all return to farmers, who were therefore increasing their output. The efficiency of the industry was quite remarkable. In addition to liquid milk the United Kingdom was producing 125,000 tons of cheese (against the 85,000 tons from New Zealand) and 30,000 tons of butter. The price New Zealand could get for cheese in the United Kingdom was controlled substantially by home production. The great problem was to know what to do with stocks in store and on the water. Cheese

was not a very elastic commodity. The desirability of switching from cheese to butter manufacture had been suggested, but reduction of New Zealand’s exports of cheese to the United Kingdom would leave more room for the home production of the United Kingdom and for expor t s from Australia and Canada. ';■ ' ) Disposal of Surpluses The United States, said Mr. Fawcett, had been regarded as the principal culprit in difficulties created by the disposal of surplus dairy products on overseas markets, but their programmes had generally been fairly thoughtful of others’ interests, though New Zealand’s markets had sometimes been affected. The problem, however, was a much wider one than that presented by the United States. It was brought about almost wholly by support prices and control of disposal of the residue after domestic requirements had been met.

Future Conferences and Officers

The annual conference of the New Zealand Grassland Association in 1958 will be held at Dunedin. Gisborne has been recommended for consideration as the venue for the 1959 conference. Officers elected at the annual meeting were: President, Dr. L. Gorki!!; vice-president, Mr. C. E. Iversen; Secretary, Mr. J. Doidge; members, Dr. P. D. Sears, Mr. A. G. Elliott. Mr. S. H. Saxby, immediate past president, is a member of the executive committee. “Proceedings" of the conference, containing papers and discussions, may be ordered from the secretary to the Association, P.O. Box 2298, Wellington (price 155.).

Mr. S. H. Saxby Receives First Grassland Association Award

THE first award of the New Zealand Grassland Association for outstanding contributions to the betterment of grasslands in New Zealand was made to Mr. S. H. Saxby, retiring president of the Association, at the Association's annual meeting in Hamilton in October. The decision to make such awards was made by the Association last year and a recommendation from the organising committee of the 7th International Grassland Congress that Mr. Saxby be given the award in recognition of his services to the New Zealand Grassland Association and his outstanding work in the organisation of the international congress was unanimously adopted by the Association's executive committee. The award was presented by the incoming president, Dr. L. Corkill. Mr. Saxby was for several years secretary to the New Zealand Grassland Association and resigned to become organising secretary to the 7th International Grassland Congress. He returned to the executive of the New Zealand Association as vice-president and then president. He was recently appointed Assistant Director of the Extension Division of the Department of Agriculture.

Papers and Speakers

Opening Address, E. J. Fawcett. Presidential Address, S. H. Saxby. "Aspects of Soil Moisture and Irrigation", D. S. Rickard. "The Water Requirements and Management of Irrigated Pasture", H. G. Hopewell. "Mechanics of Spray Irrigation", B. R. Homersham. "The Economics of Spray Irrigation", J. M. Miller. "Survey of the Use of Short-rotation Ryegrass", R. H. Scott. "The Use of Short-rotation Ryegrass on a Bay of Plenty Farm", H. T. Titterton. "The Use of Short-rotation Ryegrass at Lincoln College", C. E. Iversen. "The Use of Short-rotation Ryegrass on a Manawatu Fat Lamb Farm", D. R. Willis. "Improvement of Lotus nosus", P. C. Barclay. "The Influence of Treading on Pasture", D. Edmond. "Weedkillers as an Aid to Pasture and Crop Establishment", L. J. Matthews. "Rates of Grass Seeding and Topdressing of, New Pastures Sown Down under Varying Conditions of Soil Fertility and Farm Management", A. V. Allo and B. T. Jordan. "Establishing and Maintaining Swards on Airstrips on Farms in the Auckland Province", E. H. Arnold. "Some Factors that Influence the Rate of Growth of Pasture", R. W. Brougham. "Sulphur Responses on Pastures", T. W. Walker. "Some Aspects of Germination Analysis", A. V. Lithgow.

These circumstances occurred in other countries, than the United States, particularly on the Continent and in Scandinavia.

With the strength now possessed by farming organisations throughout the world and their consequent political influence, there was no question that support prices in one form or another were here to stay. ,

“It is a question,” Mr. Fawcett said, “of whether we should damn the system of support prices or learn to live with them, and I think it will have to be the latter. The Food and Agriculture Organization has studied the problem for many years and Lord Boyd-Orr at one time worked out a scheme for a World Food Bank. That seems to be something, like the line along which we will have to work if world markets are not to be upset by surpluses.” European Market Moves The possible economic effects on New Zealand of the two movements in Europe for the establishment of a Common Market and a Free Trade Area were well worth study, said Mr. Fawcett. The European Common Market Scheme proposed a combination of six countries under which they operated in concert, with no : internal trade barriers and a common tariff front to outsiders. Their avowed intention was to become self-supporting in food and agricultural production and to have an industrial structure that could compete against the rest of the world. They had the potential of a very sound economic bloc in Europe that presented a very awkward position for the manufacturing industries of the United Kingdom and some Scandinavian countries.

Nations proposing a wider Free Trade Area envisaged combining with the European Common Market, except that the United Kingdom would not contemplate agricultural production coming within the free trade orbit,

because of concern for Commonwealth markets and her own agriculture. It was consequently very doubtful whether the Free Trade Area would become affective. If it did not, the United Kingdom would not be able to get into the Common Market group except through a high tariff barrier.

Commonwealth Solidarity As the European market proposals developed, said Mr. Fawcett, Commonwealth. solidarity was likely to be an issue of major importance. The recent meeting of Commonwealth Finance Ministers passed a resolution to consolidate Commonwealth relations. It had been forecast that a meeting in Canada, possibly next year, would produce a new Ottawa Agreement. The new Canadian Prime Minister had said he would advocate closer ties and greater trade between Canada and the United Kingdom and an offer had been made to negotiate an agreement that would immediately affect manufacturers in both countries.

If the establishment of a Commonweath common market were ever seriously considered, it would suit New Zealand agriculture admirably, because it would give free entry of farm products to the markets of all Commonwealth countries, but it would not suit the manufacturers, because it would mean the end of tariffs and embargoes against imports. “The problems ahead are challenges presented to producers, scientists, and the Government,” said Mr. Fawcett. “We have had challenges before and have met them. I am satisfied we can meet those in the procurement of markets. We should not allow these short-term rebuffs to affect our outlook, but should by every conceivable method increase our output, hold our costs as far as possible, though many are beyond the control of the producer, and go ahead with our heads in the air, but our feet on the ground,” he concluded.

Fertiliser Conservation

NEW ZEALAND farmers had come to expect that the availability of phosphate was inexhaustible and were going on using a lot that might or might not be necessary, Mr. E. J. Fawcett, Director-General of Agriculture, told the recent conference of the New Zealand Grassland Association. The main sources of supply of phosphate rock (Nauru and Ocean Island and Christmas Island) gave the highest grade and cheapest phosphate in the world, but at the present rate of usage and expected increased manufactures the deposits could last only about another 40 years, he said. Even in the next few years the rate of usage in Australia and New Zealand could bring the necessity to go out to dearer markets for phosphate.

"This is a serious matter in face of the problems before us," said Mr. Fawcett. "A nice little problem for the agricultural scientist to solve is the better use of the P 205 that is applied every year. Somewhere about 20 per cent, of applied phosphate is readily available to the plant. The rest is locked in the soil and only slowly available. If scientists could find how a greater proportion could be made readily available, we could reduce our rate of usage considerably."

Phosphate interests in the United Kingdom had told him a few months ago, said Mr. Fawcett, of the great deal of work being done on methods of extracting P 205 from rock, and he considered that within the next 10 years there could well be a revolution in the way phosphates are applied to the soil. It might be as a liquid instead of as a solid, and he could not see why that should not be possible.