EGG MARKET.

Press, Volume LXVII, Issue 20333, 4 September 1931, Page 12

EGG MARKET.

REASONS FOR LOW PRICES LESSENED DEMAND. EXPORT TO LONDON MARKET.. Egg prices, to-day have ; fallen ■to a level which is almost on a par with those ruling 20 years ago, and to a level which has never been reached at a corresponding period of the year throughout that time. Expert opinion is tbat the bottom has fallen put of the market and that there is no indication that a final low-level basis has beon established yet, especially in view of the fact that the flush of eggs will not be on the market for some time. Great interest attaches to the export of eggs to the London market. The first shipment of about 50,000 to 60,000 dozen will bo sent from Lyttelton this month, in an endeavour to ease the glut on the loeal markets. Comparison of Prices. When interviewed by a representative of The Press yesterday, the manager of one of the leading co-operative wholesale egg marketing concerns in Chriatchurch stated that not since the years 1911 and 1912 had: such a low level of priees been ruling at this period of the year. Iti 1911 stamped first grade eggs sold at lOd a dozen while in 1912 they brought 10i}d a dozen. That thoso prices were unaltered throughout the spring and summer was an important fact to bo remembered whon making such a comparison, as upon present indications it seemed that there was little chance of the J present prices holding for such a period. ' Further easing seemed, unavoidable. Yesterday the prize for first grado stamped eggs was lid a dozen, and for second grade stamped eggs, lOd a dozen. Between the two grades there is no other difference than that of weight. Both classes are guaranteed fresh eggs. First grado weigh over 2oz. For the corresponding week in 1930 tho price for first grade was Is 4d a dozen, and that for second grade Js 2-Jd a dozen. Pastrycooks Affected. ' ' -More eggs have been produced than have been required to meet all requirements," ho continued. "Perhaps one of the biggest factors in precipitating the immediate fall in the market has been the alarming falling off in the size of the contracts for eggs for the pastrycooks from this season's supplies. They have found that as a result of the critical financial situation that people cannot afford to buy, and are not buying, tho goods as in normal years and the eggs secured on contract from last season to carry-over tho winter until the end of July are lasting thorn a great deal longer this year. No supplies will bo required for some time to come. As far as their contracts for next season are concerned, no better conditions {tre expected and they have been very siti-,-i ously roduccd. i Country Suppliers. i "Then, too, the country peoplu are sending forward heavy supplies. The country storekeepers are known to be marketing eggs to City retailers at 7d a dozen, so that the country people are being paid less than that for them at country stores. The producers are faced with a falling market and there is a general inclination to quit supplies and meet the market. "Export Necessary." "As a result of this season's overproduction it has been deemed neces-. sary to export, eggs to the London market. The, first shipment is to loave Lyttelton by the Port Somerset during this month, and a further shipment has been arranged for October. No shipment has been arranged for November yet, but there may be one in that month. These shipments are arranged by -tho organised sellers of eggs in Christchurch. It is anticipated at present that between 50,000 and 60,000 dozen eggs will leaye. on tho Port Somerset. I anticipate that the exporting of some portion of- tho sqrplus will steady tho markfct somewhat, but I do not tliink that it will effect, any material improvement in the local market price. "It is not anticipated that the price secured on the London market will be very good, but with the advantage of 10 per cent, iii the exchange rate, and favoured with a reasonable sale or benefiting by a slight rise in egg prices at Home, it may happen that the price secured for the exported eggs will be better than that which would have ruled if there had been none sent to England. Giving Up Business. "I cannot see any other solution than that the well-known law of supply and demand will have to take its course, and many more egg producers will have to go out of the business in. consequence of the reduced demand. Many of them are doing that to-day. They cannot compete at present-day prices, taking the price of wheat into consideration. In 1911, when values were as low as they are to-day, a bag of fowl wheat was worth about lis, while to-day it is worth approximately 'SI. ' 'The poultry-keeping business is one that can be taken up or left off at short notice, and even if a great many of the larger and stronger producers stay in the business it is certain that flocks generally will be reduced. "The egg production is not in full flush yet, and when incubation requirements are satisfied —there will be a lot go into incubators this season—what is going to happen to the loeal market under pressure of more than an ordinary over-supply? The organised soller3 will have to do something for their members who put on the market a higher grade of eggs aB compared with the country supplies. Certainly tho 'guaranteed egg' is worth more support than it obtains. Christchurch a True Market. "Christchurch provides perhaps one of the best markets to observe present conditions in the industry. The market here is a true one, since there is no buying for pulping and no 'buying in.' "Christchurch is not alone in itrf position," he concluded. "Auckland is suffering similarly, but values thero are usually, as to-day, 2d a dozen higher than in this city. In Wellington tho wholesale price is at Is a dozen for first grade eggs. The market thore collapsed from Is 5d to that figure in a short period. In the Capital City in many instances retailers are selling at the wholesale price. In Duuedin a similar position obtains."