Worst of Depression Now Passed

Manawatu Times, Volume 61, Issue 288, 5 December 1936, Page 12

Worst of Depression Now Passed

WORLD-WIDE EVIDENCE OF TRADE REVIVAL. PROSPECTS FOR STAPLE PRODUCTS. “Undoubtedly tie worst of the depression has now passed, and a revival of trade is evident in most countries of the world,” said Mr. T. Currie, chairman of Directors, when addressing the annual meeting of shareholders of the New Zealand Fanners’ Co-operative Distributing Coy., Ltd., at Feilding yesterday. “The resultant increased price for raw materials will greatly assist this Dominion, and although the revival is due in some measure to the world wide staggering expenditure on and demand for armaments, yet the recent conclusion of a new monetary agreement between the three leading financial centres, London, New York and Paris, is having a very beneficial effect on trade generally and provided no serious international trouble occurs, cue is encouraged to expect much more prosperous aud buoyant times than have been cur lot over recent years.

“In a brief review of the past year’s markets for our main primary products, the fairly even trend of values throughout the period is a noticeable feature,” he said. “Apart from seasonal fluctuations, prices have remained wonderfully steady, indicating more stable conditions in the Home markets. It is becoming apparent that any previous accumulation of raw materials, particularly wool, has now gone into consumption, thus removing a potential daqger which hitherto had a significant bearing upon the movements of several important markets. In consequence a steady demand has existed for our primary products, and in view of the marked revival of trade in tho Homeland, the coming season promises to furnish very payable returns from-the sale of our wool, meat and dairy produce. Nevertheless, one has to boar in mind the evot increasing costs of production, and also the possibility of further quantitative or tariff barriers. Should the coming year fulfil my expectations in regard to higher values, and I hope it will, I would urge all producers to take the opportunity of consolidating their positions, as the disturbed world conditions of to-day furnish no guarantee that settled trade will remain uninterrupted for any lengthy period. “Wool Market.—The past season has been marked by the large increase in exports, due to tho heavy clearance of held over wools. The comparative figures are as follows: June 30. 1930, 918,471 bales valued at £12,709,498; June 30, 1933, 582,763 bales valued at £6,327,793. This shows tho largest export total since 1922 and nearly double that of last year. On the whole were much higher the average price per lb. at the New Zealand sales being 9.13 das compared with 6.54 d for the previous season. "Prospects for tho present New Zealand selling season aro bright and if prices remain on a parity with the opening sale at Auckland growers will have nothing to complain about. Indications are that a strong demand will be sustained, practically every wool consuming country in the world being short of stocks. The difficulty might be to control the position from developing into a boom, which, in view of past experience, I am sure none of us wish to see.

“In regard to frozen meat, from figures supplied by tho Meat Board, shipments lo September 30 are all down exeopt in the case of frozen pork and chilled beef. Tho comparative totals are as follows: —

“Lamb prices at Home averaged in the neighbourhood of 6 7-8 d which is a fraction higher than for the previous year. The wet autumn created a protracted killing season, while the abundance of feed and the shortage of breeding sheep no doubt caused some graziers to reduce their deliveries of grown sheep. Chilled beef export trade more than doubled tho figures of last year, and the Meat Board representatives report that the quality showed considerable improvement. In regard to the pig industry, shipments of frozen pork again sho>v a marked increase and have now developed from what was once regarded as a side line into an important branch of our frozen meat trade. In view of the expiration at the end of this year of the import agreement with Great Britain, tho result of the negotiations being conducted at Home by the Hon. W. Nash and Ins associates will be of vital interest to the primary producers of this Dominion. “Reviewing the dairy production for the past season, mention must be made of the variable weather conditions which prevailed for the greater part of the period. A dry spring and a very wet autumn, with storms and floods in many districts, hindered normal production, but the abundance of growth in the late autumn extended the season and enabled the dairyman to make up some lee-way, with the result that on the whole the returns exceeded those o‘t the corresponding year. The grading figures for the period ending July 31, are as follows:

1 'Butter: 1935-36 146,G87 tons; 193435 136,217 tons; increase 7.69 per cent. “Cheese: 1935-36 85,555 tons; 393-4-35 92,673 tons; decrease 7.6 S per cent. “This gives hn increase of 10,470 tons of butter and a decrease of 7,11 S tons of cheese, but taking the two products on a butterfat basis, there is an increase of 4 per cent, which is quite satisfactory. The average price for our butter on the Home market during the past season was 95s per cwt., being 15s per cwt. higher than last year’s average. In New Zealand currency the past season’s average works out at above 1053 f.o.b. Dominion ports. Cheese prices have also shown an improvement, aud the additional payment of 14d per lb. on butterfat for cheese-

making, now agreed to by the Government, will compensate for the extra expenses involved in cheese production. The result of the first year’s operations under the guaranteed prices should be a guido to the dairy industry, in regard to its future policy, whilst the operations of tho executive commission and the Dairy Board in the proposed reorganisation of the industry will be watched with much interest.

"A further increase in our sheep flocks is recorded, the estimated total at April 30 of 30,000,000 being about 1,000,000 ahead of last year. The average lambing for the current season in the North Island is estimated at 90.5 per cent, compared with S3.GS per cent, in 1935. At January 31 the number of dairy cows showed an increase of about 20,000 whilst pigs are up by nearly 100,000.

"A considerable increase in area of certified ryegrass was harvested in the Wellington provincial area, totalling about 2,000 acres. Generally speaking, yields were good, and tho prices received by growers provided payable returns. Good quality certified white and red clovers are now available in our districts, and under the guidance of the capable officers of tho Department oil Agriculture, seed production should form an important branch of farming. With the increased prices for wool and lamb, cropping areas show- a considerable reduction, particularly in regard to wheat.

“With the increased value of our exports, particularly wool, it was to be expected that the balance of trade would reflect largely in favour of the Dominion, as the following figures as September 30 demonstrate: —

"1936: Exports £SO,GSG,7G2; imports £41.072,340; surplus of excess of exports £15,032,422.

"1935: Exports £13,359,1.51; imports £35.380,800; surplus of excess of exports £7,972,293.

“1934: Exports £49,310,079; imports £28,975,000; surplus of excess of exports '£20,305,079. “From the above, it will be noticed that whilst exports are up by £13,000,000, imports have also increased by £6,000,000. Compared with two,, years ago, imports arc larger by ‘about £13,000,000 and wc can take this as an indication of a revival in our internal trade. The banking figures front’ January on disclose a steady drop in deposits Since April, while advances arc slowly increasing. However, though de posits have decreased by £5,000,000, advances are up by nearly £1,000,000, so we may safely assume that money is. going into trade and industry instead of on deposit. The maintenance of the exchange rate at its present level appears imperative in view of the position in other countries,” he concluded.

30/9/3G 30/9/35 Carcases. Carcases. Lamb .. 8,739,880 S,848,593 Mutton 1,870,220 2,010,351 Beef (qrs.) frozen 203,2G8 302,584 ” ” chilled 144,1 GO 04,514 Pork 669,4-1-1 601,773 Boneless beef (bags) .. .. 233,505 276,199