THREE BIG THINGS

Evening Post, Volume CII, Issue 33, 8 August 1921, Page 8

THREE BIG THINGS

THEi DOMINION'S EXPORTS

WOOL, MEAT,-AND DAIRY PRODUCE OPENING OF A NEW TRADE YEAR. There are three weeks to go before the New Zealand export year opens on Ist September. From then onwards to, say, June, some slight easing of the monetary situation should make itself apparent. As wheat "pulled Australia, through" last export year, so dairy produce this coming Dominion export year is expected to account for some of the loss to the country's wealth-producing power sustained by depressed wool and meat prices. Dairy produce provided the "star turn" of 1920-21, and at the moment it appears likely .that it will figure in a line by itself on the showbill of 1921-22. Formerly wool had that distinction. On values for the twelve months ended 30th June the position was as follows :

Export .. Value. , Dairy produce 16,823,693 ' Frozen meat 13,878,386 Wool and sheep pelts 10,513,350 Tallow 1,499,934 It was not ever thus; but the future, not the past, hae to be faced.

Taking dairy produce first: There are agents of British importing houses to 06 found all over Auckland and Taranaki just now, and a few in the South Island. They are conferring with directors of factories as to the disposal of the coming outputs of butter and cheese?, either by purchasing straight out or handling the produce in Great Britain on consignment. The issue is on the laps of the directors. So far as the future price is concerned, cheese is worth lid to ll£d as the buyer sees it, or Is at least as the seller estimates it to bo worth for the entire make of cheeses during 1921-22. Sales of output at lljd, 11 5-16 d, and ll^d are reported on reliable, authority; but not any great quantity of business has been done round about these prices for the present. (As for butter, the leading export of the' large and enterprising Auckland district, its value would appear to be in the region of 2s per pound for shipments during September-October. Beyond that the value is obscure. Hopes are entertained of » good outlet in Western Canada. Butter is now "on its own"; i.e., the exportable'surplus ia no longer the sole purchase of the Imperial Government at -2s 6d per pound. What its price to the lociil consumer is to be is somewhat of an enigma. That point will presently be discussed.! It is likely to be based on the value for export, in any case. The butter subsidy .has every chance of ceasing this season. It no doubt enabled local consumers to obtain ■ butter at 2s Id to 2s 5d per pound, but the feeling in some quarters is that the butter subsidy is doomed; that the producer will have to meet the market and the consumer will have to pay on export parity. No one seems to knowwhat this will be beyond October next. '

The terrible spell of dry weather in the Northern','.Hemisphere: explains the present prices; for cheese, for export- in September next; and on the value of cheese the price of butter will also largely depend. . Butter, however, has a .competitor; as the following press cable from London, dated 6th August, .will show:— .. ' ... _._ .■;■.'!,.' ;margarine. „ . v.i,, . As a result of the drought and the consequent shortage of butter, the demand for margarine is steadily increasing, with.firm prices. ' . Manufacturers are buying raw materials freely,' thus forcing upwards the values of copra, tallow, palm kernels, ground nuts, and all edible oils. There has been quite a boom in copra, and Dutch crushers bought 20,000 tons in a, week. The price for August-October shipment reached £37 on Wednesday, but sales by profit-taking speculators caused a decline of 30s, and there may be a further slight set-back, though the general opinion is that values are likely to be maintained, at about the present level when speculators are shaken out. There is a good demand for tallow at full to dearer rates, and an advance is expected when the sales resume on 10th August. There is some inquiry for Australian for shipment, but little business is possible,' as the prices asked are' above those ruling here. > Margarine-manufacturing companies are having very prosperous times, and Van den Bergh's, Ltd., not profits for eighteen months totalled- £1,624,873/ WOOL OUTLOOK. The wool future is not at the moment encouraging. So far as The Post haa been able to elicit brokers' opinion, it would seem that it is unanimous ( in advising growers to sell, and sell now, unlesiv they ar» financially strong enough to hold for two or three years. There is an enormous quantity of wool still in store in New Zealand, and the new clip will be here before that of last year is out of. the way. This is independently of the wool held on account of the' Imperial Government, over 300,000 bales; and the New Zealand and other crossbred wool ("our wools"! held in London. New Zealand wool exports for the twelve months ended 30th June last were 160 million pounds, as compared with nearly 179 million pounds for the previous year. There is, then, much wool still, in,the country. , London market is well down. The fact was emphasised in the Dunedin and Invercargill i sales last week. It has gained a point from private advices received here to-day of a line of Wanganui wool, 36's,to 40's, shipped home bringing 4|d per pound, or equal to ljd free on board at Wanganui, whence the grower had to send it. How much did he really get for his "production" after paying interest on capital, providing for depreciation, paying for shearing, and meeting other costs? Another line of Feilding wool, crossbreds, brought 6£d in London, equal to 3^d in Wellington, or below "Bawra" reserves here. Three months ago it would have fcJeen worth here s£d to 6|d. London will have .to conform to "Bawra" conditions from now on, in respect to all wool- shipped from New Zealand from 20th June. The position in the British wool market to-day is disclosed•• in the following press cablegram, ■ dated London, 6th August:— COARSER CLOTHS BEING MADE. The wool position shows little change, the holiday spirit being everywhere apparent, fteports from Dewsbury point to the return of the heavy woollen trade to pre-war conditions, making cheap, low 7- coarse cloths, instead of the finer qualities y,hich were in demand during the war when people had plenty of money and were willing td pay high prices. Now that money .isl less plentiful there is a steady swing of the pendulum in the direction of the old class of cloths. One firm recently sent a thousand cheap pieces abroad, and others could have sold many more if they had had them in stock. ;: -MEAT PROSPECTS. ' The frozen meat outlook is extremely difficult to express an opinion about. Stock priogsi iv New Zealand axe low,

and holdings of meat in the British stores are heavy, There is time, however, between this and November next for a decided improvement in the British market. Other markets are still more or lesß "in the air," and, in any case, must take a long time to develop before they become seriously competitive with Great Britain. The Government Statistician, throws a bright spot-light on the London retail market as it was in May last. It is as follows : Beef, ribs, per pound, in. Wellington, • 7^d ; the same imported im liondon, Is 7d; mutton, leg. Wellington 7d, London (imported) Is sd. prowers .here axe naturally perplexed when, they compare returns they are receiving from stocks passed through the fraezer and ■the price that same meat is fetching when it comes to the consumer. The disparity is amazing. But it is earnestly hoped that th« new meat export season, starting in ' November-December with the earliest of the lambs, will open brighter than it is at present, and remain so.