HEMP INDUSTRY.

New Zealand Herald, Volume LVII, Issue 17428, 25 March 1920, Page 6

HEMP INDUSTRY.

DROP m FIBRE PRICES/ OPERATIONS AT ' THE * MILLS. I r t ~ -* - _ v - ~ \ SEASON NEARING ITS*. END. The : flax-milling industry, .in which considerably increased activity has - been shown during the; last few month* as a result of a quickened ; demand and higher prices. for hemp in Britain, is likely to be affected by a recent , fall in the market price of'fibre of about £5 la ton. The drop in price occurred suddenly and is attributed by Auckland merchants largely to the inflated American exchange rate. The slackening ,in values ■ occurred' first in the " United States, andit is considered probable that the British market price dropped in sympathy with the American. y —A fairly good„ season ''■has' s been 'experienced, by flaxmille'rs in the Auckland district, many of whom are still working on contracts made ' : during the last two months prior to the fall rd the price of fibre. Notwithstanding" the recent fall it is stated that the industry is on a better " paying- basis that it was six months ago i and millers can carry on operations at a profit. The season is now, almost-ended, i and if bad weather seta "in and no im-

provement takes place in the market it is probable a number, of the mills will shortly cease operations until next spring. ■• A fair shipment of fibre was-"token from Auckland by the Waitemata early this month, and a further shipment will be taken by ,the , 'Whakatane # next week.