PRIMARY PRODUCE

Wairarapa Times-Age, 2 December 1940, Page 9

PRIMARY PRODUCE

RETURNS FAIRLY REASONABLE BUT MORE THAN OFFSET BY HIGHER COSTS. THE ECONOMIC OUTLOOK. Tn reviewing market conditions for primary produce, Mr. Thomas Currie, chairman of directors of the New Zealand Farmers Co-op. Distributing Co.. Ltd., speaking at the annual meeting of shareholders said on the whole, the returns received by the primary producer had been fairly reasonable, the costs of production had so appreciated as to more than absorb any relief which might have been intended, and certainly challenged any claim regarding so called stable returns to the producer. A total of 740,622 bales of wool was disposed of during the season. realising £12,735.076. compared with 720,202 bales valued at £9.386,375 for the previous year. In the Wellington province in which company operated, it handled 31,809 bales, an increase on the previous year of 2919 bales. . The average price per bale at Wellington and Wanganui worked out at £lB 15s. 9d., compared with £l4 3s. 4d. last year. Generally speaking, the clip, owing to weather conditions was a light one, in some instances in the Wairarapa clips being as much as 21bs. per head lighter than the previous year. It was pleasing to report that in most cases farmers submitted their clips in better order and it was hoped that further improvement would be shown in this direction .during the coming season. According to the Meat Board figures the total lamb killings to September 30, at 10,387,137 carcases showed an advance on last year of about 600,000. Mutton was up by about 500,000 carcases, while beef was also well ahead, pork alone showing a decline. The Imperial Government contracts had assured producers of a steady market. The guaranteed price for both butter and cheese operated throughout the season, said Mr. Currie, and all appeals on the part of the industry to secure a higher basis fin view of increased costs seemed to have fallen on deaf ears. Compared with 1939, butter production increased by 9 per cent, and cheese by nearly 15 per cent., and on a butterfat basis these two gave an increase in production of 10.34 per cent. Whether these production figures could be maintained is doubtful owing to the extreme difficulty farmers are experiencing in securing labour on the farms. Agricultural products, except potatoes. realised high prices and those engaged in cropping received payable returns for their labours.

A serious position had arisen in regard to fertilisers owing to the demand exceeding the capacity of the works, and those who did not book early might experience considerable delay in seepring their requirements for the coming autumn. Allowing for the customary seasonal fluctuation in prices, live stock markets and realisations throughout the North Island had during the past year been consistently firm. Due in large measure to the higher realisations for our primary products, and in a lesser degree to the operations of the import restrictions, our balance of trade showed a good surplus in favour of exports. “With the war conditions at present prevailing one Jiesitates to forecast future possibilities,” said Mr. Currie. By reason of heavy taxation and compulsory loans the expansion of internal trade may be checked, and we may yet experience a serious curtailment in the volume of business contracted within the Dominion. With the farmer, high costs retard production by discouraging the producer. The New Zealand farmer is loyal to these backbone and will do his part in the call for Empire production, but, being, British, he expects a fair deal and equality of sacrifice. By hard work, long hours, self reliance and co-operation, he will continue to bear his share in the burden of war production and when an honourable ueace had been won, he will be ready to impart an equal enthusiasm into the great task of rehabilitation.”