Evidence On Galatea-Murupara Farming Costs For Select Committee

Bay of Plenty Beacon, Volume 11, Issue 94, 31 October 1947, Page 5

Evidence On GalateaMurupara Farming Costs For Select Committee

With a view to having their case put before the Select Committee of the House which is at present considering the farmers’ fertiliser problem and farmers’ costs generally, farmers in the Galatea-Murupara district have sent to the district M.P., Mr W. Sullivan, a letter setting out in detail their position with regard to the new fertiliser prices and freight costs. The full text of the letter, signed by an* impressive number of farmers with twelve years in the district, is quoted below:—

“We understand there is to be a meeting of the Parliamentary Agricultural Committee to go into the question of the price of dairy produce in relation to costs. ' We the undersigned would like you to place the position of the Galatea district in front of this committee.

In- the Galatea-Murupara district there are 120 settlers with the prospect of another 200 in the near future, and in addition thousands of acres of light pumice land still to be developed. The average holding of each settler at present in occupation is 150 acres which runs an average of 50 dairy cows with replacements for the same. Each farm produces an average of 10,000 of butterfat. To produce this butterfat the land must be top-dressed with 4cwt. of fertiliser per acre. To grow root crops or lucerne, scwt. of fertiliser to the acre must be used to grow these crops successfully, and these crops are essential for wintering the.stock in this district.

“We will now give you a comparison of costs, the old cost with subsidies, the new price with the subsidies cut out, and the extra cost of transport at increased transport rates. Mr Marshall, Chairman of the Dairy Products Commission, in an official statement gives the price per lb butterfat to offset the withdrawal of fertiliser subsidies as 1.54 d per lb. butterfat, or ; £77 increase on 12,0001b5. butterfat. The following are the increased rates for freight from fertiliser works to Galatea: Rail to Rotorua £1 3s 2d per ton, cartage to Galatea from Rotorua £1 8s per ton.

The old freight charges were: Rail to Rotorua from works 11s 7d per ton, cartage from Rotorua to Galatea 24s per ton.

At the new price of fertiliser £lO 7s at works plus extra freight, 4cwt. of super per acre equals £2 10s per acre. On a 150 acre farm that equals £375 at old cost, 4cwt. of super per acre equals £1 4s per acre—on 150 acres £IBO. The increased cost on 150 acres using 4cwt. per acre is £195.

j.t takes three acres of land to run one cow. This is the Government official estimate for Galatea-Muru-para district. So the new cost per cow for fertiliser is £7 10s; the old cost per cow was £3 12s.

The Government official average for New Zealand is 2401b5. per cow. Cost allowed for the withdrawal of subsidies on manures is 1.54 d. This means £1 10s per cow> Increased cost of manure landed in' Galatea is £3 18s per cow. Therefore the difference in price of butterfat and the cost ; of manure means a loss to the Galatea-Murupara district of £2 8s per cow.

“The Galatea and surrounding districts must have at least 4cwt. of fertiliser per acre to maintain pastures but this will not build up the fertility of .the land. To prove this, when fertiliser was rationed and in short supply, there was a drop of 30001bs. of butterfat per farm. In Galatea there are a large number of returned soldier settlers who, being new to the district, do not realise what manure means to the land and will, owing to increased costs, of manure, cut their top-dressing to offset costs. This will be fatal to them as well as production. The new increased cost of manure is going to block development in the district as it will not only have to bear the cost of the manure but the unimproved value of land in this district has been increased from £1 to £3 peracre.”