In the present cyclical phase these are no longer necessary in rendering the discount policy
effective, particularly since the time of low interest has now passed. The credit restriction measures
are significant only as a financial burden on the bank's Credit business, although they are not
intended as such.
AGRICULTURE AND HORTICULTURE.
During the year under review there were a number of developments in agriculture and horti-
culture and particularly in the export of agricultural and horticultural products, which were fraught
with danger. Nevertheless, results during the past year were on the whole favourable. Exports to
Germany were fairly satisfactory despite the unfavourable prospects. The system of import duties
introduced as from lst October last continues to constitute a threat to our agricultural exports,
as to the import restrictions ansounced by the U.K. Exports of agricultural products to the latter
country developed favourably. The price of bacon was increased, and horticultural exports sur-
passed expectations. This may be attributed to the disappointing erop results in Britain. By im-
posing import restrictions on cheese the U.S. set a bad example in the costly lessons on removing
obstacles to trade, which we have been taught in recent years. Our cheese exports were particularly
badly hit, because a start had just been made with building up a market for this product in the
U.S. Exports of meat and meat products (canned ham) to the United States reached an un-
precedented level. In exports of agricultural products to Belgium and Luxembourg the preferential
right granted under the agricultural protocol of May 1947 continued to be of great importance,
especially where butter was concerned.
EXPORTS OF AGRICULTURAL AND HORTICULTURAL PRODUCTS')
(fl. millions)
1950
1951
Total agricutural products
453.2
533,2
Total cattle farming products
1.070,8
1.385,2
Total horticultural products
386,8
473,3
1.910,8
2.391,7
Compared with this country's total export figures, which increased from fl. 5,300 to fl. 7,500
million, i.e. by 40%, agriculture and horticulture made a substantial contribution towards this rise
in exports. Whether they will be able to continue to do so depends mainly on the ability of a
number of countries, which are important to our agricultural exports, to restore their equilibrium
to such an extent that they can keep pace with a further liberalization of foreign trade. The coun
tries in question should, however, remember that restrictions imposed on our exports of agricultural
products must have the reciprocal effect of reducing this country's ability to import, since we can
only pay other countries with our own earnings abroad. Conversely, Holland will have to realize
that she will only be doing herself harm, if protective duties on new industries should result in
defensive measures directed against her own agricultural exports. It is obvious that only general
liberalization of trade will ultimately offer small countries the best chances. Recent announcements
regarding unavoidable restrictions on import of cattle fodder, so vital to cattle farming, which is
responsible for the bulk of our agricultural exports, remind us once more in this last year of actual
Marshall Aid of the immense importance of this large-scale aid programme to our agriculture. In
future we shall have to rely on our own efforts, which will mean less imported cattle fodder
and therefore more cattle fodder from our own soil. This calls for a policy adapted to this purpose
and more operating capital. Hence the decision to form a fl. 25 million guarantee fund from the
counter value account of Marshall Aid, as an additional support in effecting such a switch-over
in operating finance, was a good one. It enables credits up to an amount of fl. 50 million to
be granted to farmers who would otherwise not have been able to offer sufficiënt security for an
agricultural credit.
In this connection we are convinced that if Dutch agriculture should develop along the lines
desired by the government the financing of business and capital investment of both private businesses
and co-operative societies will yet make heavy demands. The agricultural credit banks would do
well to make due allowance for this fact, and in the interest of Dutch agriculture and horticulture
they should impose restrictions on their investments outside these.
The final results in agriculture were extraordinarily favourable. A reasonably good erop realised
very good prices. The heavy rain fall favoured production in sandy soil (high ground). The price
of wheat was controlled; nevertheless wheat growing was encouraged by „marrying this to the
growing of oats and barley. The greater the amount of wheat grown, the smaller the amount of
oats and barley that has to be supplied at the lower prices fixed by the government.
The trend of agricultural production during 1951 is shown in the following table.
Crop Crop Crop
1949 1950 1951
Wheat136 104 115
Rye121 100 122
Barley129 108 104
Oats 131 106 128
Potatoes for consumption126 119 120
Potatoes for factories108 91 96
Sugar beets H6 97 94
Some of the results of cattle farming were less satisfactory than last year. The amount of milk
delivered to the factories in 1951 remained virtually unchanged at 4,700 million kilograms. The
average fat content increased from 3.62 to 3.65%. The rise in the costs of cattle farming was not
compensated for by the corresponding increase in sales prices. During 1951 there was much dis-
satisfaction with the price policy concerning milk, especially as regards the character and the
level of the guaranteed price for milk and the level of the producer price of liquid milk. The
government finally accepted the proposal of the Foundation for Agriculture to fix one guaranteed
price of fl. 0.20. The Dairy Fund was maintained during the year; the responsibility for sup-
plying liquid milk by means of subsidies from the Dairy Fund weighs heavily.
During 1951 exports of dairy products showed the following trend: the value of butter ex
ports which in 1950 rosé to fl. 285 million was maintained; the value of cheese exports advanced
from fl. 163 million to fl. 175 million; exports of condensed and skimmed milk from fl. 166 million
to fl. 229 million. These figures confirm the previously noted trend to seek an expansion of dairy
exports in the manufacture of milk products rather than in butter. Our Central Bank played an
important part in financing the capital investment directed towards this end.
This and subsequent figures have been obtained from the Central Statistical Bureau. It should be noted that the
Central Statistical Bureau has adopted a new product classification as a result of which the figures differ from those
in the previous annual report.
AVERAGE YIELD PER HECTARE FIELD CROPS
(1930—1939 100)
