WHEAT AND THE POULTRY INDUSTRY.

Shannon News, 13 September 1929, Page 3

WHEAT AND THE POULTRY INDUSTRY.

CHEAPER FEED SUPPLIES NECESSARY.

EVIDENCE BEFORE WHEAT COM MITTEE.

Amongst those who gave evidence before the Parliamentary Committee which is enquiring into the position ot . the wheat industry were £ Jennens and B. Raskin, of Levin. The £ former stated the views the Wei- ■ lington poultry-keepers and the latter dealt with the cost of production .or 6g Mr Jennens' main statement, upon which ""he was closely cross-examined was as follows: ". „. TTTArrnrT SUBSIDY ONLY A PALLIATIVE "I have been closely associated with the poultry industry for the past eight vears, and as Chairman of the Wellington' District Poultry Farmers' Association, Ltd., for sometime, and acting Secretary of the Levin Poultry Keepers' Association, I have had ample opportunity to observe the many difficulties through which the industry has. passed from time to time. "Those troubles have been directly the result of the high cost of production due to the costs of food, and whilst subsidised export may be a palliative for a few weeks, the results cannot be satisfactory. The costs of production added to export costs, will absorb the full 4>rice realised on the Home markets. Export cannot extend over a greater period than three months unless much lower prices can be ac- ■.: cepted. The producer is therefore faced with huge quantities of eggs on the New Zealand markets during the months of November. December and January, and usually February, all of which are produced at a loss on feeding costs only, without provision for labour or overhead charges. j

My personal conviction, and I believe I express the views of the majority of poultryfarmers in the North Island, is that subsidy of this'kind on export is wrong. Circumstances of other interests being protected may be ,the factor governing the need for subsidy here, but I feel sure that poultryfarmeis would "gladly carry their own risks of export if the costs of production were based on free importation of the necessary foods, and it is questionable whether there should he any duty whatever on foodstuffs required in 'any of our primary industries. Costs of importation should be sufficient protection for any industry in conflict.

WHEAT PRICES ARE CONTROLLED

High cost of production of eggs applies to the whole of New Zealand, but more particularly to the North Island where transport costs of food from South must be added. Prices oi fowl wheat and wheat by-products are apparently controlled, and it is claimed that it is the advancement of the poultry industry which has secured for the wheat owners a market for second quality wheat that provides a better -price to-day than milling wheat hac realised. Wheat grown in the North Island is priced on parity with South, plus cost of transport. With reasonable cost of production, the poultry industry is capable of huge expansion, climatic conditions are favourable, and with encouragement oi small areas devoted to mixed farming, the Home market can absorb all the eggs ■we can export. The markets foi pulp have not been tested under other conditions than prohibitive costs oi production. Pulp could readily absorb the surplus after export was finished, and although export of pulp may not show a profit even at lOd per dozen, .there- is • the advantage of relieving £he local market.

iThat is impossible to-day because it is generally accepted in my district that production costs, jfor food alone, is Is'2d per dozen eggs.

It does not seem reasonable to sug

gest that elimination of poultry farms is the solution of the difficulty when the high costs of production are the cause, and are due to the protection ol another industry. So much capital has been invested in buildings and plant, mainly on small areas* of land, yet the owners are faced with ruination if relief is not IforUhcoinAng 1 - Little inquiry is made for such properties, unless that proportion of improyements applicable to poultry farming is removed to enable sales to be made. PROTECTED WHEAT THE KEY. Poultry farmers' organisation to buy food has been mentioned. I need hardly repeat that this question is 'centred round the protection granted •' ' to another industry, and whilst the holders of wheat and its by-products . have that protection, it is futile to suggest that poultry farmers could deal any better than the commercial organisations who arc already trying to obtain lower prices for the needs of the poultry farmers through trade competition. The fact that prices of wheat products are fixed in varying parts of New Zealand, and that no matter how much transport charges may lessen the cost delivered from the port of origin, the fixed price at destination must be . paid, surely indicates that wheat holders have the key t 0 the situation dur- ■ ing the continuance of ta*rif£ protection which bars competition. No explanation is offered for the rise- of 2d and in some instances 3d per bushel, which took place from the end of July when 'free' wheat finished.

PIG AND DAIRY FARMERS

INTERESTED

The situation is serious and demands * early consideration. 1 am aware that the requests of poultry farmers will . have the full support of dairy farmers, pig breeders and others interested as

users of the same commodities as the poultry farmers. That the conditions are real and not exaggerated are substantiated by statements of accounts already submitted to the Hon. Minister of Agriculture. Statistics collected on behalf '• of the Agricultural Department will, I think, confirm my view of the financial misfortunes of the present day poultry farmers, one at least of whom is submitting his own statement, and offers himself for examination of evidence.

The day-old chick trade has in the past been of assistance financially to the poultry farmers whose business is extensive enough to enable them to cope with it in large quantities, but there is plenty of evidence that this year there is little business doing owing to uncertainty and that lack of confidence which is regrettable in any industry.

My conclusion is that relief is imperative, and the condition of the industry demands urgent consideration.