FARM IN WAR

Wairarapa Times-Age, 10 September 1940, Page 9

FARM IN WAR

AUSTRALIAN POLICY MEETING CHANGED DEMANDS. DIFFICULTIES OUTLINED. Difficulties faced by Australia in her supply of farm produce to Britain, under changed conditions arising from war developments, were outlined in a frank statement recently by the Commonwealth Minister for Commerce (Mr Cameron). Relevant parts of this statement were supplied today by the Australian Trade Commissioner in New Zealand. Mr Cameron gave the following basic summary of important changes < in agricultural supply which have particularly affected Empire countries: “(1) Markets have been narrowed for the disposal of products of which Empire countries produce a surplus over Empire requirements. “(2) Some sources of supply have been cut off in respect of certain products of which the Empire as a whole is a deficient supplier. “(3) Empire shipping, carrying supplies to the United Kingdom, is subject to enemy attack. As a consequence, economy in shipping space has to be observed, and the United Kingdom Government are not prepared to allocate space for some commodities, or to take the full supplies available of other commodities. “These changes and inteferences,’ said the Minister, “have not been unexpected. Because they were anticipated, consultations between Empire Governments took place before the outbreak of war. When war occurred the negotiations between the United Kingdom and Australia were sufficiently advanced to enable contracts to be made covering most of our principal products. “As soon as the first contracts were arranged, the Government inquired from the United Kingdom Government as- to Great Britain’s principal requirements of foodstuffs during the war, and the directions in which Australia could stimulate production with greatest benefit to Britain. “It is of course obvious that the capacity of the United Kingdom to take increased supplies of any commodities depends upon the availability of adequate and suitable shipping tonnage. It will be realised that enemy occupation of the entire coastline from Northern Norway to the frontier between France and Spain constitutes a challenge to Empire sea-borne trade. Undertakings regarding future purchases and imports by the United Kingdom, therefore, depend on the successful protection of shipping and port facilities. “Having regard to the difficulties of th,e shipping position, the United ! Government have decided that the utmost effort should be made ' to conserve shipping space, especially ! since the need for importation of mu- ■ nitions and raw materials for arma- f ment production is now far greater , than before the collapse of France. ( The United Kingdom Government , have advised that they therefore feel - bound to limit their definite commit- , ments for food imports to articles re- < garded as strictly essential but, realis- ■ ing the importance of agricultural ' experts to the war effort of the Dominions, they hope that the situation will so develop as to permit arrange- , ments for imports during 1940-41 on j a scale not materially from those of , 1939-1940. Wool. J “The arrangements made with the , United Kingdom Government provide , for the purchase of the entire Aus- j tralian production of wool during the , war, and one year thereafter. The wool producer therefore has no anx- , iety regarding the disposal of his pro- . duct. Despite the assurance of war- j time disposal, the wool industry will ( face serious post-war problems, and j there would not be justification for stimulation of production. , M eat. ‘

“The position for the ensuing 12 months in regard to meat is still uncertain. There is not the same assurance regarding the sale of the total surplus as in the case of wool. Before the outbreak of war, the understanding between the United Kingdom and Australian Governments was that the total surplus would be purchased However, at the time of the collapse of France large ' quantities of meat which were en route to that countryhad to be diverted to the United K ingdom. “The result is that at present the United Kingdom has abnormally large supplies of meat, the pressure on cold storage is acute, and the United Kingdom Government have found it necessary to limit the further quantities which can be taken from Australia during the next few months. “Moreover, because of the changed conditions caused by the blockade of i Europe, the United Kingdom Government are re-casting their meat import policy for the year commencing next October. The present indications are not favourable to an expanding rate of purchase by the Government of Australian beef, mutton and lamb, but there are somewhat better prospects that increased quantities of frozen baconer carcases may be imported from Australia. Dairy Products. "If the United Kingdom Government are prepared to purchase increased quantities of Australian pig meat in the form of baconers. the expansion of pig production will coincide with increased output of dairy products and eggs. Owing to the loss of European sources of supply of butter, cheese and the British Government desire increased quantities of those commodities from Australia, and will give first priority to them in the allotment of available refrigerated shipping space. “Importance is also attached to dried milk, in respect of which we are at present in negotiation with the United Kingdom. We are also concluding negotiations with the authorities at Singapore regarding substantial supplies of condensed milk. The orders which are expected to result will call for a considerable increase in production in Australia. "An opportunity thus exists, to a limited extent, for an increase in the production of butter, cheese, other milk products, pigs, and eggs. The dairying industry is situated chiefly

in areas of liberal rainfall, and increased production can be brought about through pasture improvement, fodder conservation, improved water supply, subdivision and stock improvement. Greater production resulting from these efforts should also result in decreasing costs, and therefore improved economic status for the industry. The increase in egg production will depend upon the capacity of the industry quickly to increase the hen population, and upon the availability of. adequate supplies of foodstuffs at reasonable cost. I Wheat.

“The position regarding wheat is vastly different. Out of the largest crop on record, we have certainly made substantial sales to the United Kingdom and to the East, and smaller disposals elsewhere, but we have no continuing contract with the United Kingdom for all, or most, of the exportable surplus. “It is true that the contract for the purchase by the United Kingdom of more than 60 million bushels, in the form of grain and flour, is a very large deal, but it will be about the middle of 1941 before this is all lifted. When that stage has been reached, we will doubtless have made further sales to the United Kingdom, but at present no forecast can be made as to their dimensions.

“In any case, we will bring in the next harvest in December and thereabouts, when we will still have on our hands sufficient wheat of the old crop to fill export shipments for some months ahead.

“There are no grounds for optimism regarding the markets in the immediate future, and the affairs of the wheat industry must be considered in a realistic fashion. It would be unsound to allow wheat production to proceed as if there were no marketing difficulty. Wheatgrowers should not be encouraged to produce as much as they can,. in the expectation that the Commonwealth Government will make up the difference between market realisations and some figure which may be mentioned as the cost of production. “Fundamental remedies are necessary to ensure the future of wheat farmers. It is believed that changes can be made in the industry with benefit to the farmers and to Australia generally. I have said before that there is need for greater diversification of their pursuits by wheat growers and other farmers; and there is room for improvement in general cultural practices in the wheat industry. There is need for a change in policy, and a new system of husbandry which will lead to a smaller annual wheat acreage and the introduction of more stock and fodder crops on the farm. Fruits.

“The position of the fruit industries, on the whole, is not good. Of all fruit crops, dried fruits stand in the first order of priority. We have sold the total export surplus this year, and hope to do equally well with the next crop. Fresh fruits have a lower order of priority. This year Australia exported to the United Kingdom less than two million bushels of apples and pears, compared with a peace-time supply of upwards of four million bushels.

“We have no guarantee at all of any apple and pear exports to the United Kingdom next year. Indeed we are informed that, unless the shipping position is very good indeed, we are not likely to get much space for fresh fruit in 1941.

"I am sorry to say that canned fruits have been given a very low order of priority for next year. However, we are still in negotiation with the United Kingdom Government on the matter, and will do what we can to secure all possible export for these fruits. Normally the United Kingdom imports 1,500,000 cases from Australia. This year’s purchase has been only 750,000 cases and there will be a large carryover to next year.