The Evening Star FRIDAY, MAY 2, 1924. PRICES FOR EXPORTS.

Evening Star, Issue 18623, 2 May 1924, Page 4

The Evening Star FRIDAY, MAY 2, 1924. PRICES FOR EXPORTS.

Durixg Ida recent exchanges with the four Christchurch Labor M.P.s the Prime. ’Minister made a statement which closely coincides with an opinion frequently expressed in business circles, particularly the export brandies. Mr Massey said; “My own opinion is that with the lower prices for our produce which we are likely to experience after this year—even now some of the prices received are. quite low enough for (he settlers to carry on—Now Zealand will have to do what some of tho Australian Slates have done already, and that is reduce expenditure ail round to a greater extent than has yet taken place.” Early this month an authority in tho dairy produce business, commenting on the very low price at which New Zealand butler was then quoted in London, expressed the opinion that bedrock had been readied, aa.d forecasted the slight recovery which ha* since taken place. But he went on to state that lie saw' little, likelihood of our again receiving such prices as dairy produce lias been averaging for a fair number of years past. Apart, from Britain’s decreased purchasing power—which may possibly now be again on the up grade, but is unlikely to make any sensational strides, hampered ns it is by the deadweight of external debt —:t is incontestable tl*t the world’s dairying production is showing a great increase.

New Zealand has the distinction of being the world’s greatest exporter of dairy produce, duo largely to the small proportion of the total output that is retained to satisfy local consumptive needs. But competition from other countries is increasing at a rate that suggests the world’s dairying production to be growing at a greater pace than the population of those countries which can be counted ns consumers. In that event a lowering of markets must bo tho natural outcome. It is not considered as at all beyond the bounds of possibility that the readjustment may in time bring prices to those which the producer was accustomed to in pre-war days—butter in the vicinity of Is per lb, and cheese at 6d or 7d. The financial aspect of dairying in tins country would in that case hinge very largely on the price the producer has 71aid for ids land. On the whole it would not be too sweeping to state that as compared with markets as they stood just prior to the war our primary products have latterly been realising on an average 30 to 40 per cent, better prices. There seems to lie a growing conviction lh.it readjustment downp ward should be faced, that the swing of the pendulum must now bo the other way. There is, however, one. staple product in whoso case an exception must he made, and that is wool. The world's population i.s growing, and the world’s consumptive requirements with it, but wool production Is not on tlie increase. The absolutely unfettered competition which prevails in the method of disposal of wool has enabled growers to reap the full monetary benefit arising from the keen demand and limited supply. Tho result of the scries of wool, sales during tho past season has brought into prominence the fact that of all our important primary products wool is tho only one sold at. auction. There has in other export lines been a complaint of tiie operations of trade combines resulting in the, producer getting fess than a fair return. If it i.s likely that lower ranges of values He ahead it is all the more important that such a leak should be stopped. The formation of producers’ pools has that object in view, but the experiment, though it has as yet barely had a trial, i.s not very hopefully regarded by those most intimately acquainted with all trie condition?. Not long ago it was proposed to give the system of periodical sales of dairy produce a trial in Southland. It is regrettable that the project fell through, as the experiment might have been of some value in tho effort towards improvement in our commercial methods.