Some Aspects Of Hill Development

Press, Volume CVI, Issue 31107, 9 July 1966, Page 8

Some Aspects Of Hill Development

ITAEVELOPMENT of the , more difficult class of hill country was technically possible and if well implemented was sound, but he would not underestimate the difficulties and it was not for the fainthearted, said Professor J. D. Stewart, professor of farm management at Lincoln College, discussing plans for the college’s Hunua property in the Waikari district at this week’s hill country development conference at Waipara. The key to development on this country was to be able to bring stock power to bear on restricted acreages, he said. It might be necessary before oversowing and topdressing to I stock at up to 20 sheep to the I acre, but if it was not posIsible to do this these operaj tions would not be as successful as they would otherwise ! be. In these circumstances they might have to bear a cost in reduction of individual sheep performance. Priorities, he said, must be aimed at the fastest possible increase in stock numbers. The breeding ewe had a fast “pay-back” period. The payback in two years was usually greater than the initial cost. 1 To this end emphasis had to be given to oversowing and topdressing and cultivation. There were differences of opinion as to whether limited resources should be used in ’cultivation or oversowing and topdressing. Their preference was for cultivation on a substantial scale although initial costs were high. He favoured it because there was less uncertainty. It provided winter feed and stocking capacity for the stock for handling potential oversowing and topdressing areas and enabled a ; build up in stock numbers. | The cost per additional ewe : equivalent was about the same under the two systems. But I because cultivation was faster it was their intention at Hunua to cultivate to the limit of available finance and available country. A basic principle was balanced development and consolidation of gains as the programme progressed. "A lot of money has been poured out

of aeroplanes because it has looked to be the spectacular way of doing things,” he commented.

There was an argument for the use of dry sheep in a development programme. Compared with low performing ewes giving an 85 per cent lambing and clipping about B|lb of wool, their performance was not too bad.

There was a place for cattle but the initial investment was very high. The vital factor was what could be made from the additional ewe that was put on the country. On the basis of an 85 per cent lambing, selling lambs as stores at 35s and cutting BJlb of wool selling at 42d a lb net of transport and selling charges, this gave a gross return of 60s a year. The depreciation for these ewes would be about 10s to 12s a head a year. With other costs at 5s direct costs would amount to about 15s leaving a gross margin a ewe of about 45s a head. That was what was left for all overhead costs, vehicle repairs and maintenance, fertiliser and seed, living expenses and taxation and development. Where the debt servicing component of overhead costs, which would be interest, required principle repayment and rent, exceeded 10s a ewe there was not much scope left for development No Margin At Hunua carrying 1250 ewe equivalents it was assumed that interest on the debt overdraft and rent would amount to 15s a ewe. This left no margin for development Given this situation was it prudent to develop? This depended on the cost of development in relation to the ewe increase achieved. At Hunua it was hoped to achieve a development cost of £lO a ewe including the cost of stock. If that could be done the economics of the project would be reasonable. If £lO had to be borrowed at 6 per cent that was an additional charge of 12s a ewe.

But when additional buildings and extra labour were

needed then the position needed careful scrutiny. Professor Stewart said that the biggest impediment to a faster rate of development was the spectre of dry seasons. A comprehensive water supply was most important. But he wanted to remind his listeners of the impact that increased fertility had on the capacity of the country to meet drought. This had been noted in the drought of two seasons ago. He believed that considerable changes could be made in stock management to meet such a situation. These included early weaning, and accumulation of hay. They were also interested in barley feeding and high stocking on hill country.

Answering a question about the profitability of wethers as compared with ewes Dr. Stewart said that with wethers purchased as twotooths and sold as four-year-olds clipping 9Jlb of wool the gross margin would be as good or better than for ewes if it was possible to carry two wethers where one ewe was being carried.