LOWERED COSTS

Hokitika Guardian, 30 July 1931, Page 7

LOWERED COSTS

MEETING FALL <IN PRICES. INCOMES OF FARMERS. The direct result of the extraordinary fall in export values of farm products during the last two years has been a very heavy loss to the farmers of this Dominion, says the annual report of the New Zealand Meat , Producers Board, As the New Zealand farmer has to place his produce on the Home market in open competition with the output front aii other countries, Soule of whom enjoy certain advantages iiot possessed by this Dominion, it is obvious that costs must be kept lit the lowest possible point, "Farmers are to-day receiving for their produce prices on the average much below what they were receiving before the war ; therefore, it becomes imperative that we must concentrate on reducing our costs, not only as applying to those on the farm, but also the various costs in the intervening links from the farm until the product finally reaches the point of consumption. Tn considering costs we must realise that though market prices rise or fall, every charge between the meat producers of this Dominion and the buyers on the 'Home market remains more or less fixed, so that' when any reductions are secured in these costs they represent an increase in the net return which the farmer receives for his labour and capital invested.” An interesting graph published in the report shows the marked drop in New Zealand export prices of butter, cheese, meat and greasy wool since 1929 as compared with New Zealand retail prices for all groups of commodities. The index number for New Zealand retail prices (all groups of commodities) for the yeai 1929 averag'd 60.7 per cent, above the pre-war base (July, 1914), while in May, 1931, it stood at 48.0 per cent. Compared with the drop in New Zealand export prices (butter, cheese, meat and greasy wool)- the index number foi 1929 average was 43.0 per cent, above pre-war base, whereas to-dav (May 1931) the index number was 14.7 per cent, below pre-war base. Having regard to the present economic position, the board reduced the levy payable on meat exported from New Zealand by 25 per cent, in respect of shipments on and after January 1, 193 j-• Members of the board decided to reduce their honoraria by 20 per cent., and a cut of 10 per cent, has also been made in respect of the salaries of the whole of the board's staff. The excess of income over expenditure for the twelve months amounts to £1606 5s sd, and the board’s accumulated fund as at June 30, 1931, stood at £95,795 3s.