The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, MARCH 9th., 1931. THE FARMERS’ PROSPECTS.

Hokitika Guardian, 9 March 1931, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, MARCH 9th., 1931. THE FARMERS’ PROSPECTS.

PfIOBABfiY ore this, with the experience passed through of late, the average farmer in studying his prospects, is beginning t<> content himself with a lower range of prices for his products. It would be wise to do so in any case for the trend of afi'aiis seems to indicate that a lower level must prevail until something very abnormal again arises. Another great war is not likely to recur with any haste such as happened of late and disorganised the world’s producing and transporting organisation. Lessor events such as widspread droughts or minor upheavals might affect seasonal changes, but on the whole, the world is well back to the old producing order, and production is sure to increase rather than decrease. There must always bo a demand to some degree for farm produce. Folk must eat and be clothed, and the essential commodities for that purpose come from the land. The demand price will not satisfy always the supply price, and in that difference business methods come into question to ensure the best return from the market yield obtainable There is always the consolation too that if the demand price drops, greater consumption is encouraged, with the result that prices must react favourably again. Low prices always help to stimulate trade, as markets are always demonstrating. But as has been noted before, influences other than ordinary economic ones, need to lie considered, I°*' has keen suggested that in the case of New Zealand exports the absence of organised marketing methods has provided an opportunity for traders to make profits which legitimately belong to the producer. The demand for concerted action from dairymen in the interests of co-nnerntive marketing has consequentlv been advanced. It there is not a sufficient recovery in the demand values of our iwnduco within a reason'd,|(. neriod, if the present discrepancy between the quotations of our own and Banish butter persists, and u the present margin between the wholesale and retail prices of Now Zealand butter in England continues, the facts appar-

ently could he regarded as substantiating the claims of those who urge me consolidation of marketing practice. There is one point to be constantly kept in mind as the farmer faces the immediate present. That is the fact that, there is little prospect of a recovery in price levels to tlios ■ ruling for the past lew years. Opinion in most quarters agrees on this. Of course an improvoment mi present levels will he expected, lint the point, to he emphasised, is that any advance that takes place will be to nominal heights only. Accepting ibis prospect then, we find ourselves laced with on,, clear-cut. issue. Briefly, it is that the trading year must be a period of adjustment throughout the whole primary world. The profits which make for success in industry will depend more than ever on production costs, and in seeking a reduction of the latter the fartri»r of necessity, will have to review lie whole of his farming practice as it concerns the management of flocks, herds, pastures, crops and implements Above ail he will be called upon to exercise a nice discrimination in deciding what is true and what is false economy. He must guard against the urge to cut down ’any expenditure which is essential to the lusiintenuiiee of productivity and which, if reduced below certain limits, would seriously impaiy the efficiency of his management and reduce not only costs but also pro.its. For example, the reduction of experience on artificial manures to stem the drain on fertility of normal cropping and grazing, and tin l elimination of herd-testing costs arc steps which cannot lie taken without running the risk ot losing profits far in excess ol any saving they may oiler. With a careful discrimination, however, the period ol adjustment can be made one ol great permanent benefit to our primary industries. That they are innately sound—as evidenced by increased production in spite ol slumping values and enjoy advantages of climate and potentialiles over those ot other countries, should imbue us with confidence in their ability to adjust themselves successfully and profitably to new circumstances. If wo follow a policy aimed at reduced production costs wherever they can be justified by economic standards, coupled with increased production and improved quality, the year will undoubtedly bring to the producer a reasonable measure of prosperity.