PRODUCE & MARKET REPORTS FROM DAY TO DAY

Evening Post, Volume CXXIX, Issue 18, 22 January 1940, Page 10

PRODUCE & MARKET REPORTS FROM DAY TO DAY

EXPORT SURPLUS

SLIPE WOOL

MINISTERS ANNOUNCEMENT

In an address on Saturday night, the J Minister of "Marketing (the' Hon. W. Nash) announced the arrangements for the sale of New Zealand export surplus of slipe wool to the United Kingdom. Results of negotiations between the two Governments for the sale of the country's woolly sheepskins, the > total exportable surplus of which is required by the United Kingdom, were also given by the Minister," who outlined the progress made with the negotiations for the sale of hides and tallow. Mr. Nash said that- following ex- ' tensive negotiations ' agreement had been, reached for the, purchase by the United. Kingdom of the total production of-slipe wool for the period of the war and one year thereafter, over and above- New Zealand's own 'requirements. The price was to be-13.75 pence sterling f.0.b., equivalent to 17.1016 pence New Zealand currency, with the provision that the Dominion shares with the United Kingdom on a 50-50 basis in profits on sales made outside the United Kingdom. ~ ,■ ~ *- "The purchase covers slipe wool, held over from. last season as' well as the current season's production," said Mr. Nash. "After allowing - for appraisal /and administration costs at .125 pence, -the overall average f.o.b. price in New Zealand currency for all sheep's and lambs' slipe wool becomes 16.97J66 - pence, from »which will be deducted 10 per cent, as a suspense fund to cover .any necessary adjustments consequent oh, the results of the appraisal. \ A HIGHER SUSPENSE FUND. V < "There are special difficulties in estimations of quantities and,types and grades ■< of slipe wool which make a - higher 'suspense fund necessary than "is the case with greasy wool. As in the case of greasy wool the appraisers have already worked out, within the overall average, the' relative values for all - the' different types, qualities, and grades of-both sheep's and lambs' slipe wool, so. that in payment due regard is had to the respective values of slipe wool of different districts, brands, and standards in preparation. The prices range from about seven pence to as high as 22 pence in some cases, but the average must work out to just a fraction under 17 pence. . "The whole of the moneys retained but not used for the purpose of adjustment will in due course be refunded to owners of slipe wool on a pro rata basis at the end of the.season as is the case with greasy wool." WOOLLY SHEEPSKINS. Referring to woolly sheepskins, Mr. Nash said that though negotiations had not yet- -been completed the United Kingdom Government had indicated to' the New, Zealand Government that it would require our total exportable surplus. In the case of this commodity the basis of purchase, would be the slipe wool price for the wool on the skin plus the ruling parity value. for the pelt or skin, which would be cabled to New Zealand from time to time - by the High Commissioner for New -" ' Zealand in London. This was also , quite a satisfactory arrangement so ': far as New Zealand was concerned and he hoped satisfactory to the United \ Kingdom.' The necessary procedure " for immediate export was well under ( way / The Sheepskins Marketing ": Authority, established by the Gov- / eminent over two months ago; would undertake on behalf of the Govern- ; ment the appraisal and export of the v surplus sheepskins and a comprehen--1 sive price schedule would shortly be ! issued .covering all grades and quality , of skins offered for export. • TALLOW AND HIDES. • • "With the completion of purchasing i agreements for our,: slipe wool and , ! woolly sheepskins there will be two '• major primary products which have • not yet been subject to some agree-; I s ment with the United Kingdom, and i these are hides and tallow," said Mr. ■ Nash. He added that in the case of ( ' tallow negotiations were still in progress, and he was extremely hopeful - that finality would be reached this i week whereby the United Kingdom • would purchase its requirements. So far as hides were concerned the - * Minister said he was'still holding con--1 ferences with the Meat Board, New ' Zealand Farmers' Union, representatives of the New Zealand Butchers' J and Hide Exporters', and local .tan-. - ners' associations, and with the Mm(- --( ister of Supply, Mr. Sullivan, arid he v. hoped, it would be possible to anwithin a few days the. pro* ' cedure to be followed for their dis« - posal during the current year. "