TOBACCO GROWING

Wairarapa Times-Age, 10 August 1938, Page 3

TOBACCO GROWING

INDUSTRY IN NEW ZEALAND. RAPID STRIDES MADE. (By H. L. Wise, M.Com., A.R.A.N.Z., , Advisory Officer.) Tobacco-growing in New Zealand has made rapid strides during the past few years and its development has been greatly increased by the passing of the Tobacco-Growing . Industry Act in 1935 and by the appointment of a board under that Act by the present Government on April 20, 1936. Prior to the passing of the Act and the setting up of the board under the Act, the industry had been in a more or less chaotic condition by reason of the fact that the production of leaf had borne no relation under the then existing conditions to demand or consumption. Production had proceeded somewhat haphazardly without any regard to market requirements, and in spite of the increased use of New Zealandgrown leaf by New Zealand manufacturers, production had outrun demand. Growers had riot known from time to time just what quantity of leaf it was necessary to produce or how much within reasonable limits they were likely to get for it when it was produced. Surplus leaf over and above contracts and the resulting stocks of leaf on hand had represented a danger to the industry and had prejudiced the position from the growers’ point of view. ,It was under such circumstances as these that the Act was passed and the board set up. Since the board came into existence in April, 1936, the industry has been organised on a proper basis. The contract system of growing for certain manufacturers or for export has been developed and now there is practically no leaf growri which is not the subject of a biriding contract between grower and manufacturer entered into at the time of planting. The development of this system has* consequently provided the grower with a far greater measure of security than he had previously, when perhaps he grew) his leaf and took the risk of being able to dispose of it after it was harvested. In terms of the Act, growers have been licensed and the sale and purchase of leaf have been controlled by warrants, also issued under the provisions of the Act. At the same time as the board is trying to increase the use of leaf for local manufacture, it is also taking steps to develop an export trade with the United Kingdom. From the information available it would appear that there is a considerable field open in the. United Kingdom for leaf of the type and quality which we can provide, and there appears to be no reason why we should not obtain a greater share of the market that is available. Amongst the ’. many matters dealt with by the board have been the fixation of minimum prices for leaf, the question of research into diseases affecting, tobacco, a soil survey of all tobacco and potential tobacco lands commencing with the Nelson and Motueka districts, the establishment of a tobacco research station, the formulation of a long range plan for the development of the industry, the establishment of standard grades for leaf, the formulation of a standard form of contract between growers and manufacturers, and the purchase of all leaf in the district where it is grown. The board was responsible for the formation last ypar of the New Zealand Tobacco Growers’ Federation, an organisation comprising all tobacco growers in the Dominion.

The number of licensed growers is now approximately 450, and the area for which licences were issued in the 1937-38 season was 2,563 acres. It is anticipated that the yield, which this year is outstanding both in respect of quantity and quality, will be in the vicinity of 2j million pounds.