FOR THE FARMER

King Country Chronicle, Volume XXXI, Issue 4564, 3 November 1937, Page 3

FOR THE FARMER

QUALITY IMPERATIVE. THE CATTLE INDUSTRY. STANDARD OF ARGENTINE BEEF. TASK FOR NEW ZEALAND. New Zealand has an exceedingly difficult task in store if it wishes to match the Argentine in the quality of beef produced for export, according to a well-known farmer of Methven, Canterbury, Mr. Ernest St. Clair Haydon, who recently returned from a visit to Buenos Aires, where he judged Lincoln, Romney Marsh, Corri»dale and Southdown sheep at the annual show. In Mr. Haydon's opinion New Zealand will never be able to approach the Argentine for quality of beef.

The fact that the Argentine was now concentrating upon the production of fat lambs of prime quality and was likely to become a serious competitor to New Zealand in this respect was also mentioned by Mr. Haydon, his remarks giving added strength to the advice given on several occasions recently, that every step should be taken to maintain to the fullest extent the high standard of fat lamb which is produced by this Dominion.

New Zealand's position at the present time as the producers of the finest fat lambs is an enviable one, but is by no means impregnable, for other countries are steadily improving their standard. In the case of the Argentine, the attainment of a standard of fat lamb as high as that of New Zealand would be a most serious matter in view of the advantage in position of that country in relation to the Home market.

Mr.' Haydon remarked that the meat industry in the Argentine was very highly organised, and in two of the larger works there was a killing capacity of 5000 head of cattle, 10,000 sheep and 2000 pigs per day. Mr. Haydon lived in the Argentine from many years. He said that in recent years South American countries had progressed at an astonishing rate and outside countries, specially Great Britain, had invested enormous sums of money in different industries. The show at Buenos Aires this year illustrated very well the degree of prosperity of the Argentine. The number of entries was enormous, and it required four days of hard work for him to judge the four sheep sections in which he was interested. The quality of the sheep had greatly improved since he was there nine years ago, and they were classified mainly into two groups, the English type and the New Zealand. The Dominion type was much the better represented, said Mr. Haydon, majority of exhibits were magnificent specimens. The champion, for instance, brought the remarkable price of 15,000 dollars, or about £950 in English currency. FAT LAMB TRADE. DOMINION'S SUPREMACY. IMPORTANCE OF RETENTION. CHALLENGE TO MEET. "The supremacy held by New Zealand in the fat lamb trade, which is the envy of all competing countries on the British market, is in danger, and in order to maintain their position farmers throughout the Dominion will have to bestir themselves," stated Mr J. E. Hewitt, of Mangamaire, a wellknown breeder, in the course of an interview. Once the present pride of place was lost a colossal depreciation in land values in New Zealand would inevitably follow and so strike a serious blow against the farming industry.

"Countries competing with us are fully alive to the demands of the British consumer," said Mr. Hewitt. "Quality, which commands a premium on the English market, is their goal. Our competitors have issued a challenge and with their Governments fully behind them, they are rapidly becoming serious rivals. The idea that there is a limit to the best quality they can produce is a mistake and should be dispelled." The Argentine had been regarded as being a beef country only, but now she was turning her attention to sheep. Recently an expert from England went there to advise on the question of raising fat lambs, which showed that the farmers there propose working on the right lines. In New South Wales and Victoria they were working overtime in trying to improve their quality and were making a great success of it. "Our supremacy in the fat lamb trade is something we have to guard most jealously," said Mr. Hewitt. "If we lost it I would not be surprised if our land values fell by £100,000,000,

which would be staggering to this Dominion. We have no alternative but to remain on top, and this will entail constant striving after quality." THE WOOL MARKET. CURRENT SELLING CONDITIONS. INFLUENCES AT PRESENT AT WORK. BUYING COUNTRIES HOLDING OFF. Market conditions which will have a strong influence on the New Zealand wool sales when they open in Auckland this month are discussed by "Warp" in the Sydney Mail, who writes:—

"There is every evidence that the withdrawal of considerable quantities of wool from the selling brokers' catalogues is having the effect of restricting competition at the sales, buyers, realising that the wool is piling up, apparently being prepared to sit back and wait till it is offered later in the season. It is largely a waiting policy on both sides, and who will be the gainers in the long run is so much a matter of conjecture that it v/ould be quite unsafe to hazard an opinion. The return of —Japanese competition must be a big factor in developments.

Although the absence of the Japanese has been the most commentedupon fact in connection with the wool market since the opening of the Australian season, it is noteworthy that the United Kingdom operators are also taking considerably less than they did last season. Even allowing for the 'fact that the offering is not particularly suited to their requirements —and on some days particularly so—they are by no means as keen as they might be, and the market is suffering in consequence.

When the Japanese were absent from the market last season, their competition was replaced by United Kingdom buyers, who bought heavily and were very largely instrumental in maintaining prices at their then satisfactory levels —levels which are being largely repeated at the present time. Yet if the backing from the United Kingdom is limited it is still a factor in maintaining values. Just now the Continent is very much in the bidding and securing fairly large parcels of the staple. Germany and Italy are buying well, with France and Belgium giving useful support, and the usual moderate but welcome inquiry is coming from other Continental countries. In addition, local demand is very useful. For such lines as will suit her, the United States bids freely. On the whole, values cannot be considered as anything else than remunerative, although it is probable that we will see better prices if and when we have both Japan and the United Kingdom competing at their peak. But there is a very definite "if" in that respect. It must be realised, too, that if this competition develops it may come when the market has all the wool that anyone can possibly require, for, despite the fact that growers are now seeing the future a little more clearly and are offering their wools freely as they become available, catalogues are still very often below their allocation, and this leeway will have to be made up sooner or later. That buyers are not competing more keenly for the reduced supplies shows that they are well aware that reduced offerings now are going to lead to plenty of wool being available in the second half of the season. In favour of a maintenance or improvement in prices are two factors: First, that stocks are apparently being drawn upon to fill what orders are about; and, secondly, that the excessively dry season over a large area of the wool-growing country, and especially the late-shearing districts, seems to point to lighter clips. Also important is the l fact that armament plans are going ahead right throughout the world, and while this war, or at least militaristic, fever continues there can be no question that the demand for wool must continue.

Yorkshire, apparently, is holding off as long as possible to see which way the market will go; but so far, while there may have been some signs of weakness developing, there has been no indication of anything in the nature of a slump; therefore, to that extent her restricted purchases seem rather useless from a "bearing" point of view. Until last season Yorkshire could be classed as the biggest "bear" influence in the wool trade. Last season she came right out and gave excellent "bull" support, while Japan endeavoured to "bear" the market.

This season both Japan and Yorkshire are "bearing." Japan has very

little money to spend and wants to make it go as far as possible, while Yorkshire has enough wool to see her through for a while and is not going to buy any more than is absolutely necessary. Last season Bradford bought a lot of wool that was not particularly suited to her requirements, but the demand was strong and supplies not up to what was needed, so she made do with what she could get. That policy probably saved her much money later on in he season when the Japanese arrived in full force. If Japan does come strongly into the market at any time this season, then the United Kingdom buyers are going to be caught, for there is no question of supplies of wool being too great for the demand, provided there is no prolonged extension of the present reluctance to sell.