TOBACCO INDUSTRY

Hokitika Guardian, 7 November 1929, Page 2

TOBACCO INDUSTRY

G OVERNMENTAL ATTJTIJDEI

WELLINGTON, October 31.

Tho Government guarantee oi a minimum price for exported tobacco has now run its three-vear course and though the matter of renewal has not been brought before Cabinet . it appears unlikely that there will be an extension of the period. The attempt made by the late Government to place the new toba.cc-o industry on a footing in the country was an attempt aimed at the c; cation of an export trade. In the first season, however, complications ensued' through the fact that Messrs. W. D. and H. O. Wills decided tc purchase practically all the Nelson crop. It was agreed that a certain number of selected samples should he exported to test the market and the report on these was fairly favourable, but following this deal many; growers who commenced to raise tobacco for export continued their operations under contract to Messrs Wills, and tbe chances of building' up an. export trade from Nelson, which was the home of the movement, began to dwindle vapidly, Last season 'further complications followed the decision of growers in the North Island- to iembqrk'; on tobacco growing. In Hoßianga a fairly large crop was raised, but when it was harvested, it was pointed out that because the crop had not boon raised under Government supervision, am 1 because it was air-dried, instead' of kiln-dried, it was not within the conditions of the guarantee, ‘ Some of the growers were in difficulties and finally, as an aqt of' grace, the Department of Agriculture clodded to advance a price to the growers, hut a price which, after payment of transport charges, left them with a small return. Growers are displeased at this turn of events, but it is pointed out that the Department is not at fault. However', the three years are now over and the position is that the London market is still untested by any considerable quantity of New Zealand leaf. It remains to be seen whether the leaf which is raised in the Dominion is fully suitable to that market and whether it will fetch a fair price there. At thq moment the Department of Agriculture does not advise persons to embark on tobacco growing as a sole means of livelihood, unless they are working under contract to a company, or unless they are secured in some way,

Meantime, it lias been decided that Mr C, E, Low, Government instructor on tobacco growing, shall wortin the North Island this season. Improved methods of drying and conditioning houses of better standaid make it possible that this season s crop will show an all-round improvement.