HEMP MARKET IN 1922.

Hawera & Normanby Star, Volume XLII, Issue XLII, 5 January 1923, Page 5

HEMP MARKET IN 1922.

VARIATION IN VALUES. —— I i The year 1922 was a quiet one for New Zealand hemp. There are many fluctuations in values, but the variations'were not very marked. Early in the year high fair was worth £27 10s per ton f.o.b. Wellington, but at the end of April and again at the end of June the price dropped to £25 By September 30, the price had risen to £26, and although the market swayed backwards and forwards, the year closed with the price at £26 per ton, which just about leaves a small margin of profit to the miller. , The production oi hemp in New Zekland for 1922 amounted to 60,326 bales, about 19 000 tons, against 60,443 bales in 192 L Last year's production was the lowest tor many years. Millers have now to go further afield for the' flax, and this adds materially to. the cost. The present price of £26 per ton leaves a bare margin of profit, and it would be impossible for millers to. add to the costs of production and carry on. Another menace to the industry has been the blight experienced in the established flax areas around Shannon. The trouble has proved serious enough for the Fiaxmillers' Association to engage *an expert to investigate the matter. This' expert, Mr. George Snierle, has discovered that the blight is due to the manner of cutting the flax. Hitherto it has been the rule to cut deep down, which affected the growth of the new shoots, which were sickly and diseased. It appears that he has demonstrated that by cutting the flax higher up the new growth is strong and vigorous, and instead of a new crop being available every four years, as was the case under the old system of cutting, under the new system a new crop is ready for the millers in two years. The problem to> be solved now is whether the new system of cutting the flax high up will be commercially profitable. If it adds to the cost of prcllucing hemp it will not be adopted, for the present price* of New Zealand hemp, as already stated, leaves no margin. If costs of production could be reduced and the new system is all that it is claimed, then the industry will prosper. i