The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNESDAY, JANUARY 7, 1931. PRODUCE PRICES.

Hokitika Guardian, 7 January 1931, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNESDAY, JANUARY 7, 1931. PRODUCE PRICES.

The plight of the farmer at this j tine Lure is a matter for general concern, because it is from the primary products that the trade of the Dominion is chiefly stimulated. For some time now there- has been a steadily levelling down of prices both in respect to products and stock. It is an unusual experience- for an all round drop to occur. The experience has been generally that while sometimes may decline, others hold their own, but just now the fall is universal. Dairy products which are of such great importance to the welfare.of the country, have fallen very low. Wool, another highly important product, has gone down to bed rock rates. Stock is falling also, and the price for lambs this season is not going to- be very lucrative, though the comforting information is being afforded that the rates will not be as low as in 1913. The leading lines of export in relation to production, are wool, butter, frozen meat, cheese, skins, and hides. The value of these lines run into many millions of pounds. In 1925, pastoral products of the nature referred to, were exported to the value- of over fifty millions. For 1930 the drop is expected to he substantial, variously estimated at ten or more millions. The loss of this amount in credit and general circulation, means a great deal, for all classes of the community are. involved. Just as prices slump lor general trade, so business falls off, and prices of all classes of saleable commodities are affected. Land we aie told is worth just what it produces, or in other words, what the occupier can afford to pay for it. And when the- man on the. land, in the eounti\, or the citizen in the town in business, does not find his returns equal to his expenses, the value of the property in case is affected. That is what is happening to-day, and town propelt ?s like farming lands, are being affected in value. The contraction of values affecting property, means a good deal, and those involved have to curtail their general operations. The effect is therefore passed on. and spreads through the community. With- produce prices down, the state of affairs indicated, is being reflected all over the country. And with prices down, and the prevailing conditions, there is not the opportunitv for a quick recovery. Anv recovery will he slow, and there do"s not appear any prospect of the prices soaring to the heights which m the past, were reached. Such being the case, a general adjustment of expenditure is necessary to meet tne

changed conditions. The range of prices for some time past permitted greater liberality for general expenditure. This has now been contracted definitely. The farmer, is no doubt facing the new situation in the right spirit. He must see. the necessity of an overhaul of his running costs. It is plain that the returns for his produce will he limited rather seriously, and he has to balance his budget by cutting co-ts where lie can. But he must he careful about the style of economy he attempts. Where flocks and herds are concerned, they must he as well kept as ever, and ample feed must lie provided. While prices are low, more produce will help to maintain returns, so that neither the efficiency of the farm nor the stock should be imperilled. He should study his production costs in and about the farm, save where he can, but never at the cost of minimising production. Land should be brought into better profit by clearing and sweetening to give bettor returns, and herd-testing should be more necessary than ever so as to be relieved of robber animals. In short, the farmer must give the fullest attention to his farm and production, and by watching the advantages of sound marketing, seek for the greatest benefit from, the reduced prices of today. Economies are generally possible, and they mean savings, and the savings will become useful profits nowadays.