MAKING BEET-SUGAR IN NEW ZEALAND.

Waikato Times, Volume 2507, Issue XXXI, 4 August 1888, Page 2 (Supplement)

MAKING BEET-SUGAR IN NEW ZEALAND.

Tut: following article has been furnished to us by a gentleman who has given a large amount attention to the subject : —

" Before any capital is invested in tho growth of sugar-beets in New Zealand, or in providing' 1 plant for the manufacture of sugar therefrom, it will be well to compare the conditions which prevail in this colony with those of Germany, and to see from this comparison what chance of success people who put their money in this enterprise would have.

" First, us lo the lmirl, there seems reason to believe Unit soil of sufficient richness is to bo found in New Zealand, and for the purpose of calculation wo can assume that such will be obtainable in accessible localities, and that in one such district there will bo enough farmers residiug with in a reasonable distnuce of Uio site for tho factory to ensure the delivery of tho beets at a moderate ratv of carriage, merely remembering that for a factory to produce, say, 1000 tons sugar, there will be needed 3000 acres of land on which beets will be grown. Now, o.i these assumptions, at what price can the beets be grown and delivered ? In Germany, where the land is moat heavily and scientifically manured, where the rotation both of crops and manures is compulsory on the growers (for instance, farmyard manure may only be used after tho beet crop is taken off, and two crops of grain or other produce must follow that of beet), the cost of the beets delivered at the factory is about 10s per ton, and the price paid up till ISB6 was about 20s. A lower rate is given now, but in most cases the farmers have a share in the factory, and the price of their beets is'determined by the general success of the campaign. When the higher price ruled, the land was worth perhaps from £50 to £70 per acre, and the rent varied from £2 5s to £3 10s per acre. In New Zealand, on the other hand, such choice land could possibly bo had for £10 to £15 per acre if thoroughly stumped and cleaned, or say from 12s to 20s per acre rent, and in this respect the farmers here would have an initial advantage. This would, however, soon disappear, for if we allow fr-mi the 16s taken as representing the cost in Germany 3s to us per ton for rent or interest, we have lis to 13s as the expenditure on labour, seed, and manure etc. Now in Germany the labourers who tend the beet-field (to a large extent women) receive from Hd to 2d per hour ; in New Zealand such labourers would get in the shape of pay and keep from 4d to 6d pur hour, and as manure, seed, etc., are all much more expensive in this colony, the growth of beets at anything like the German price teems to bo a sheer impossibility. But let us assume that beets can be delivered at the factory at 25s per ton, and see what will then bo the cost of the sugar.

" The working expenses of a factory in Germany run from 7s per ton of beets to a very much higher rate, and moat of the factories have cheap fuel, while all have an ample labour force always available at a cost of 2d to 3d per hour. In New Zealand fuel will always be dear, and wages are not likely for some time to come to be less than 6;1 per hour (20s to 22s per week and 8s to 10s for board and lodgings) for sugar factory work, so that the working expenses of any factory started in New Zealand would surely (evou if full work were maintained) amount to 12s to 15s per ton of beet, and the latter figure would be the nearest to the actual expenses. This is irrespective to any interest or provision for sinking fund, but includes the cost of maintaining the plant in running order, and the salaries of the staff, &c. during the idle season. The yield of sugar from the beets, if the product be made into an article saleable to the trade, will not exceed nine per cent, of the bi>ets, and probably be much less, but take nine per cent, as the basis, or one ton sugar for 11 tons of beet, and the cost of this will be 25 x 12 at 15 x 11 —£20 7s, at £22 per ton. This is the nett cash out of pocket, and to it must be added the interest on the capital invested in the factory. Now in Germany, a factory to make 1500 tons sugar would cost over £40,000 ;in New Zealand the expenditure would be £GO,OOO, and on this amount must be allowed 6 per cent, interest, and 4d per cent, for depreciation, which is about the rate set aside by the German fabrieants. These charges amount to £6000, or, say, £4 per ton on the sugar, and anyone familiar with the prices now ruling' in New Zealand will be able to decide for himself whether, after thus providing for the capital sunk in the business, there will be any profits left to be divided among the shareholders,

"In writing the foregoing we have thought it well to deal with broad facts, and not attempt to go into minute par ticulars, and we have not therefore referred to two points about beet cultivation which carry much weight in Germany. These are the use of the exhausted beets for cattle feeding, and the improvement in the returns from the laud used for the bsets by the intense culture required for this crop. It may, however, now be said about the first of these in New Zealand it is much cheaper to feed the stock on grass than on exhausted beets, and the present price of meat docs not offer any inducement to start hand or stall feeding ; and that as to the second, while wheat is selling at say 2Ss a quarter in Kngland, the advantages of high cultivation arc not so apparent as they would be if higher prices prevailed. " In conclusion, we may anticipate any demands for proof of what has here been put forth, by saying that any person who doubts the correctness of the foregoing statements had better inquire about the beet cultivation in the United States, and he will find that there, with a Protective duty on sugar of £'J per ton, with cheaper capital and labour than are available in these colonies, the fewattempts that have been made to acclimatise this industry have proved partial or complete failures, although money has been spent freely, and the climate is, wo believe, better for the ripening of beets than that of New Zealand. Moreover, the American refiners are a very wealthy and powerful body, and would surely have given strong support to the industry if it had appeared to them to have had any chance of success."