PRIMARY PRODUCTS

Nelson Evening Mail, Volume LXIV, 5 January 1931, Page 8

PRIMARY PRODUCTS

AUSTRALIAN LOSSES Some startling facts were put before a recent conference bold in Melbourne representative of primary-producing, banking, and commercial interests. Mr James Kidd, chairman of the Producers'" Association Central Council, presided, and gave a resume of the position that impressed every delegate.' _ . “The bottom of the trouble,” he said, “is excessive costs, coupled with a serious fall in the value of product^

“This has caused many to come to grief, a great many are on the border of collapse, and still more must follow if the evil is not overcome.

"For some time the outgoings have been in excess of the incomings. .This cannot go on without disaster. “Country people are quietly bleeding to death. Primary produtcion is the very life-blood of our economic fabric, and we would be criminal should we allow it to continue. We must get a move on.”

Some startling facts wore put before the conference.

The most important were: — In the last two years the price of wool has receded from 19id per lb to 10|d per lb. As far as the sales have progressed this year the average price is 8d per lb, which is the pre-war price. Expenditure per sheep is 8s 6.40 d per head, and the average yield of wool is approximately 81b per sheep. . The average price of wool this year is Bd, which gives a return of 5s 4d per sheep, showing a loss per sheep of 3s 2d. In regard to meat, cattle are approximately at pre-war prices, and there is little profit, if any. In regard to the wool firms, their last balance-sheets show that, the', total amount advanced tp graziers is just, on 624,000,000. The advances by banks and’ other financial institutions on land would be easily treble that. Considering this, at present costs of production, nothing can, save the pastoral industry from bankruptcy. The return of wool sold for the year, not including scoured, in 1928-29, was £55,902.618. In 1929-30 it was £32,931,363. a decrease of £22,971,255. The estimated definite liabilities of the wheat farmers to-day are: — £ Rural Industries Board 1,500,000 Machinery, fertij&ser, and fuel pj rrns 1,000,000 Crown dues (approximate) ... 500,000 Country storekeepers 7,500,060 Total £10,500,000 In addition to this there is a very largo sum, running into millions, lent on mortgage to banks and financial institutions. The total return from the osu.nnr I crop of 60,000,000 bushels at Is 5d on (he farm is estimated to realise £4,250.000 a very small proportion, of the wheat-growers’ total liabilities.