OUTLOOK FOR PRODUCE.

Taranaki Daily News, 23 April 1921, Page 10

OUTLOOK FOR PRODUCE.

POSITION MUST BE FACED# PROSPECTS FOR THE FUTURE. Masterton, April 13. Market conditions, the present slump, and the outlook for next season were traversed in an interesting manner by the chairman (Mr. Hugh Morrison) at the annual meeting of the Farmers’ Union in Masterton. Mr. Morrison stated that the past season had not been by any means as successful as the farmers had experienced in past years. They had had. to face a big slump —(first in wool, and later in the season in meat and its by-pro-ducts. And, in addition, at the present time they were facing a serious drought. All over the Dominion the farmers were in a very* serious situation indeed. There slump in all their produce except in the dairy farming section. He had heard it said, “Good enough for the farmers. They have had a good, time.” But he desired to point out that the interests of the farming community were those of the whole of the Dominion. About 99 per cent, of the wealth exported from the country came from the land. If the farmers were doing well, it would follow that the commercial, laboring, and other sections cf the community would also be in a prosperous condition. That was common-sense. Indirectly the present pinch would be felt by every man, woman and child in the Dominion. It was necessary to look facts squarely in the face. In the past there had been too much optimism, particularly when land was at fictitious values. There was also the danger that at the present time there might be undue pessimism. “WILL SEE LOW VALUES AGAIN.” “When up against it, it is not necessary for us to get down in the dumps,” said the speaker . “We have passed through such phases in the past, and have safely weathered them. In my opinion we will not see war prices again, but in time will get back to normal. But I do hot think that next year will see us out of the bush.” History, always a good teacher, had only repeated itself. After the Napoleonic wars, there had been the same boom, and consequent depression afterwards. This had also been the case after the American Civil War. In 1866 there, was the same boom in values in the States as we had experienced in New Zealand a year ago. Then suddenly came the same drop. Even .after the South African war wool had dropped to 4d per I’b. We had been warned by economists to expect a slump, but he himself, like many more, had not taken the warnings as seriously as he might have done. Wool had always been the principal export from New Zealand, and despite the present dour outlook, Mr. Morrison believed that this would again be the case when things righted themselves. THE VfO(& SITUATION. The wool position had, unfortunately, gone from bad to worse, until to-day it was looking as bad. as it possibly,could. It was enough now to see the mistakes of the past. One of the principal factors resulting in the present situation was that the accumulated stocks in England had been held too long at an excessive reserve. If it had. been placed on the market at a fair and reasonable rate the present position would never have come about. He had learned on, excellent authority that not one-quarter of las*t year’s clip had been sold in New Zealand, and what was sold was only the very best. He estimated that there would be at least a three years’ accumulation -of wool in this country. It simply had to go on the market, and the only way to dispose of it was by cheap rates. “There is no doubt that you farmers for the next three or four years cannot expect to get big prices for your wool,” he said. The wool could not be sold in the Empire when they wanted to get rid of it. The costs of manufacture, transportation, and other charges had soared out of all proportion. These costs had to he brought down. There was also the unfair demands of the shearers for extra pay. When wool went up the producers had always been pleased to meet them, but now they were not in a position to do so. He believed, however, that wool would again become the country’s main product, as it had been in the past. It was satisfactory to know that New Zealand and Australia were able to produce , wool under the most, favorable conditions in the world, and did not have , the constant bogey of competition, as was the case with their meat. This was -a matter for congratulation.

THE MEAT MARKET. Touching on the meat market, Mr. Morrison remarked that again the producers had been doomed to disappointment. There had been, unfortunately, a genuine cattle smash in America, where many cattle men had gone bankrupt. .That market for the time being as far as New Zealand was concerned was gone. At the present time lamb was selling fairly satisfactorily, but indications were" not too good. He might be called a pessimist for saying so, but it was nevertheless true. Unfortunately they were not able to catch the market at the right time. The prices for beef and ewes were by no means satisfactory. Mr. Kidman, the Australian millionaire, who had just returned from an extensive visit to the South American markets, said —and lie was a man who should know if any did—that Argentina could raise and transport beef in half the time we did. The beef export prospects were not by any means promising. There would also be active competition from Chile, Peru, and even Africa. Besides the Argentine, Canada had also to be taken into consideration. Mr. Morrison predicted better prices next season for the simple reason that the freezing companies had not been able to make e.i.f. sales. It was the costs they were

up against, and could not look for much in the way of better prices than those ruling. They were also up against the shipping companies, ’who were in the happy position of being able to charge on pinnacle prices. The only solution would be for the producers to have a shipping line of their own, but for the present they had been forced to enter into a contract with the companies. It was vital that the Dominion should be linked up with the Old Country with a quick, cheap, and entirely independent means of lt was essential that the shipping should be taken out of the hands of the ring. Looking ahead, they could never obtain good prices next season, with the present prohibitive costs of transportation. Returning to the meat outlook, Mr.. Morrison said that perhaps the most striking feature in a recently published live-stock table was the reputed increase in cattie stocks in non-European coun-. tries. This should be more than sufficient to make up any deficiency in meat supplies in Europe. The all-round decrease in sheep was not likely to affect . the European food position to any appre*

ciable extent, as most of the countries specified were beef-eaters. It had also to be remembered that there was an increase of 31,000,000 head of cattle, in the world after the war. On the other hand a decrease of 36,000,000 sheep might make some appreciable difference in the production of wool, which, on the whole, would be an advantage at the present time. THE DAIRYING INDSUTRY. Turning to the dairying industry, he said that a good season had been ex- ■ perienced, which was thoroughly deserved by men who had worked about fourteen hours on seven days in the week, but the prospects were that they would get a set-back, although possibly not as serious as meat and wool. “It will be a very fortunate sheepfarmer who pays his expenses this year, if he has to depend on meat and wool,” remarked Mr. Morrison, in conclusion. “tVe must be economical, and not like Me Micawber wait for something to turn up. We have to get down to it and farm properly if we want to make both ends meet. Lean and fat years have been experienced in the past, and good years will again come. It was not only prosperity that made the British Empire, but adversity. Take our own example. In 1840 our settlers came to this country through adversity in the Homeland. It was the same with the Pilgrim Fathers who founded a continent. If the farmers of to-day are of the same stuff and imbued with the same spirit as our early settlers, they will get through all right. I have heard a lot of talk about the farmers moaning and groaning at the present time, but personally I have seen very little of it. They are facing the position like sensible and reasonable men and must get through. They must state their case to the public, and show them exactly where the country stands. It is necessary that we farmers should stand together, and help one another in this great crisis, to-day; despite the slump, the Dominion is the brightest spot on the face of the earth We must study economy, get our coats off, and get into it, and one of the best ways ofb doing so is to support an organisation such as this. You must remember that we have not only to fight the shipping companies, but the freezing charges as well, besides other matters of importance to farmers.” FREIGHTS MUST COME DOWN. Sir Walter Buchanan said that prices must come down. It was inevitable. One of the principal items was coal, and it had already fallen considerably. Because the producers did not stand shoulder to shoulder the other day at Wellington they were forced to pay freightage to the shipping companies on freak prices. Shipping was the main point, fit .was the bridge to the market. There had been no more necessity for a contract for refrigerated produce than for wool or other unrefrigerated produce. Prices came down, and the freezing companies had to come down to their present unfortunate position. Shipping freightage should also have come down. - The people of England were forgetting the position in New Zealand and Australia, particularly the former. The British Government had a duty towards the Dominions. And representations would .be made later on in the right quarter regarding recent utterances made by Mr. Bonar Law, Mr. Lloyd George’s former right hand man. He did not believe that Mr. Bonar Law was neglectful of the interests of the Dominion, but New Zealand, because of its diminutiveness, was not going to be lost sight of. We had been much too sanguine as to market prospects a few months ago, and did not want to again make that mistake. Other people were not asleep. South America was not asleep, neither was Africa. Work was the only salvation for us, as it had been in the past. We had got into spending and thriftless habits, and, had to get out of them. In that connection Sir Walter referred to the sterling work of the pioneers, whose slogan had been thrift and work. A RESOLUTION OF PROTEST. It was unanimously resolved, on the motion of Sir Waltef Buchanan, seconded by Mr. G. R. Sykes, M.P.: “That the meeting enters its strongest protest against the decision of. the recent Producers’ Conference at Wellington, to enter into a fl|ftteen months’ freight contract at the rates offered by the shipping companies, and trusts that no such contract will be agreed to .or signed by the Producers’ Committee, except at rates reduced in proportion to the recent, fall in coal,, and the reduction in other expenses of running the ships.”

It was decided that the farmers protest against the extra war tax required by the Government on their surplus wool profits, which they have donated to the Merantile Marine and Royal Naval Dependents Fund. Resolutions were passed favoring a universal age mark for sheep and the abolition of branding cattle.