FLAX CULTIVATION SHARES

Nelson Evening Mail, Volume LXI, 12 June 1926, Page 7

FLAX CULTIVATION SHARES

A PROPHESY In February 1921, writing in the Journal of Agriculture. Mr Alfred Seifert, tiie president of the N.Z. Flaxmillers’ Association and the biggest; flaxmiller in New Zealand, said in relation to tiie future of hemp:— “I have gone carefully into market prospects and have no hesitation in giving a decided opinion that hemp will continue to he sold at a payable price in the future. Lean years must be expected hut against these, others will be exceptionally good and will fully compensate for the former. The following are some of the reasons why we should he optomistic about the future of the hemp market. The area planted in Sisal in Yutacan, Mexico, is reported to have dropped 20 per .cent in the last three or four years. In German East Africa all the sisal plantations have run out, no planting having been done since the War commenced. The first two years are taken for the plant to mature, for the remainder of the period the. leaves are cut annually. When we consider that 30,000 tons of sisal fibre were shipped in one year before the War it is easy to understand that the fibre from this part had a considerable effect on the market. The only place where the area in sisal lias increased is Java, and there the increase is so small that it could not have an appreciable effect on the market. It is reported that tiie price of Manila which comes into strong competition with the New Zealand product is so low that those engaged in dressing the fibre are having a hard time. Manila is dressed by very, primitive machinery and tiie rule is that half the fibre goes” to the labourer and half to the landowner. It is stated that a man, his wife and three children all wjprki ng, can earn only £5 17s per month. The oast of living has increased to such an extent that the labourers can barely make a living 1 hough the requirements of a native doing this work are very simple. The Phillipine Government is now considering fixing a minimum price so as to prevent this filizre bring sold below the cost of production. Considering till tiie foregoing points we have every rjglit to expert good prices for New Zealand fibre in the future.” This opinion of the’ future is amply borne out by results. Tn 1.921-22 average prices for hemp were £26 to £3O per ton whereas according to figures supplied by the Agricultural Department the average price for 1.925 was £3O 10s to £34 10s per ton. The cliirf Government hemp grader gives it as his opinion that New Zealand could sell 50 times more hemp than is produced at present. A fair average cost of production per ton is £lB to £2O. There, is a margin of from £l2 to £ls ner ton profit. Cultivated flax is capable of producing five to seven tons of hemp per acre per year. Onlv two tons per acre at a profit of only £lO per ton will return 50 per cent P.A. on money invested in ft company under capable management, formed for tiie purpose of growing and milling flax. A wonderful opportunity that is far too good to he misled for Hie profitable investment of either large or small sums, with absolute safi'tv can l>c taken advantage of now. Full rwtieulars of Fred. Seifert Co. Ltd. /Kiev Growers and Millers! from Wilson lb-os., Companv Organisers, Brunswick Buildings. 174 Queen Street, ‘n'-kland. "’ill he sunplied free of n’nnvn-p r) 11 interested. Mr J. Cowic--1 Wilson, C'o Messrs Jackson arid Twiss, Nelson.—Published by arrangement.