HIGH PRICES REACTION

Evening Post, Volume CVI, Issue 126, 24 November 1923, Page 6

HIGH PRICES REACTION

ADVICE TO PRIMARY PRODUCER

TRADERS' ITJGE LOSSES.

(II TILEQKAFH SPECIAL TO TBI TOIT.)

AUCKLAND, This Day. Some advice to the primary producer based on his observances of markets in London and elsewhere wa* given by Mr. M. A. Eliott, of Palmerstou North, who returned from a trip abroad by the Makura yesterday. He pointed out' that the purchasing power of the British public was so much reduced as to make it impossible for them to continue paying high prices for foodstuffs. He nad no doubt that the Vi«s paid in the Dominion for New Zealand wool, butter, and cheese were never warranted by the selling value in the United Kingdom. Buyers and exporters in New Zealand and merchants and importers- in the United Kingdom had all lost consid-. 2"?mno^ nd it, J had- bwm stetod that±.•^,ooo,ooo would not cover the losses made by traders. The balance-sheets ot various freezing companies in the Dominion showed that the cost of fat lambs, mutton, and ,beef must fall. Although producers had reaped the benefit it. had undoubtedly been a bad thing for the New Zealand frozen meat trade, and prices had- been created which must ultimately be reflected adversely on the Dominion farmer. Owing to agents and merchants in London endeavouring to obtain prices which would cover cost in New Zealand traders and retailers_ were driven to purchase South American and Australian lamb, which was in plentiful supply, and was being freely offered at 3d per lb less than the' New Zealand product.' "We can reasonably* expect \o obtain Id per lb more for the superior quality, of New Zealand produce, but not double or treble/ be emphasised "Several stallholders at Smithfield me that for the first time in twenty years they had been compelled to obV torn their requirements from Boutb American agents owing to the high price asked for New Zealand lamb Once being satisfied there was little chance of customers going back to the more expensive New Zealand lamb, one pSrr Tj etal Tr>, who, usually P«Kfc*se6 2500 New Zealand lambs,.had reduced his order to 300 and made up the difference with South American lambs. There is no doubt that the. .quality of the latter has improved considerably, while New Zealand, last season at'anv rate, showed a falling-off. . ' ' . "If New Zealand desires to retain its supremacy in the frozen lamb tradeevery effort must be made to improve the breeding and keep up the high standard of grading.' .Far too many second grade and inferior quality lambs were shipped last season, and even many of first quality were irregular and badly graded. Our .prime lamb commands a good price, but immediately we get into the second quality we> get into competition with the cheaper Australian and South American lambs. It is desired by all sections of the trade that there be some stability in prices, and even if values are on a lower level, so long as they, are fairly stable, it will be better for everyone, including the producers. iFluctuating values, are not good to anyone. The New Zealand farmer is making a great mistake in insisting on buyers drafting.top deeply and taking. too •niany ' second ' grade lambs. The very high prices last season have caused a great loss of interest in New Zealand lamb. The attention of traders has been diverted to other classes of .meat, which show a "profit and.it is only by a considerable reduc-' tion in prices for our lamb that this re-' grettable position will be altered."