PRIMARY PRODUCE.

Hawera Star, Volume XLV, 19 June 1925, Page 7

PRIMARY PRODUCE.

PR (ASPECTS REV IEW E D

FUTURE BRIGHT

WELLINGTON, -June 19. Some favourable comment regarding the i lit are for the Dominion's primary produce was made by Sir George Elliot in the course of his address at the annual meeting of shareholders of the Rank of New Zealand to-day. WOOL. He said: The sales opened in November last with a sensational rise in tlie prices for all classes of wool, in the North Island the average price paid per bale worked out at about £34, and it was correspondingly higher for the finer classes of wool i n tlie South Island, tt was afterwards quite apparent that these November-e-.ember prices were not justified, for, at the following North Island sales, the average dropped to £25 per bale, and again from that to £l9 per bale. Nevertheless, tne average price for the whole of New Zealand will probably work out 'at about £29 per bale for the sea soli. A comparison of this price with that oi the 1913-U season, viz.. £l2 7 S Id, gives a ready judication of the wonderful year this has been tor the Nca Zealand sheep farmer. One can only hazard a guess at the reasons that led up to tne phenomenal rise that took place at the early sales. For some considerable time Sir Arthur Goldfinch, the chairman of the Britisli-Australasian Wool Realisation Association, has maintained that the annual output of wool was wholly inadequate to supply the growing demand for 'woollen goods throughout the world. His' statements no doubt affected prices, but there were other and weightier factors. One was the difficulty that was being experienced in transferring money from London to pay for purchases both in Australia and New Zealand, but more especially in Australia. With these possible Australian exchange difficulties' in mind, buvers who had arranged for credits in New Zealand became more inclined to bid wool up to a price not warranted by the conditions of trade ruling in Great Britain and on the Continent of Europe. In my opinion,' however, the chief reason for the phenomenal rise is to be found in an excessive amount of speculation, no doubt encouraged by the continuous rising trend of prices during the previous two years. Tlie result of this speculation has been disastrous to the buyers; certainly New Zealand sheep farmers have gained, but buyers from overseas and speculators in New Zealand have lost, and such a state of affairs is far from desirable. In connection with wool values, it must be remembered that the production of artificial silk, which was in its infancy 12 or 15 years ago, lias been • making increasingly rapid strides during the past few years. It is estimated that the weight of the world’s output of this material last year uas 120 million lbs., and it is expected to reach 155 million lbs. this year. Artificial silk is a product of wood pulp, which is cheap and plentiful. During tlie past few years its use has extended remarkably, and this material is now being used in numerous ways, either by itself or j n conjunction with silk, wool and cotton. While artificial silk is having some effect oil the Consumption of wool, it will probably in the future have a greater effect on fine cottons, and its continued use will, to some extent, tend to steady tlie market for both wool and cotton. As long, however, as tlie price of wool and woollen goods is maintained at a level fair to the wool-grower, to tlie manufactmer, and to the public, neither artificial silk nor any other substitute so far discovered can take it.s place.

When the wool commandeer was arranged with the British Government during the war, the price was considered excellent bv the great majority of sheep farmers, and atfpresent. according to the latest London advices, the market value of wool is approximating the commandeer price. Any sheep farmer who has not paid on exhorbitant price for his land should. o n present 'wool values, be able to do exceedingly well. SHEEP AND LAMBS. The high prices being offered by exporters for lamb and mutton, comffined with the abundance of feed throughout New Zealand, tended to boom prices of sheep at the vaiious sheep fairs held during the summer Keen competition was experienced, and high values were the order of the day. CATTLE. An outstanding feature of the season has been the sharp rise in the price of cattle of all descriptions, this was caused by the cessation of price-cutting in the Argentine, by' the slackening off of production • owing to the unprofitable nature of the industry during the last few years, and by the enormous expansion which lias taken place in the Continental demand for fio/.eu beef. Last year 450,00 P tons or beer from overseas were consumed on the Continent of Europe, and the fact that the demand was general and widespread augurs well for the cattle-raising industry. . Exporters were paying 30s per Kid lbs on the hooks for prime ox beef, ,yid 22s to 23s for cow beef. In sympathy with the prices ruling for fat cattle, a sharp rise took place during October-Xovember for all store cattle. Good lines of young steers are exceedingly hard to get. and it looks as if prices, will remain firm for some time to come.