PRODUCE MARKETS.

New Zealand Herald, Volume LVII, Issue 17631, 18 November 1920, Page 7

PRODUCE MARKETS.

SIR T. MACKENZIE'S VIEWS.

FALL IN WOOL VALUES.

MEAT AND BUTTER OUTLOOK.

[BY TELEGRAPH. —OWN CORRESPONDENT. J

WELLINGTON. Wednesday. Referring to the present outlook for produce, Sir Thomas Mackenzie said today that he was not disposed to take a pessimistic view of the wool situation. Statistics showed that the world's flocks, exclusive of the uncertain Russian total, had declined by between 60.000.000 ' and 70,000.000 since the commencement of the war. and this fact could not be disregarded when the future of the market was being considered. The present situation undoubtedly was difficult, owing to the heavy accumulations of wool in" England and elsewhere, but he hesitated to at tempt any generalisation. The question really was exceedingly complex, ajid he was not yet fully Conversant with what had happened since he left England. He had stated publicly there his opinion that the policy of the controller in withholding wool from the market and charging high prices for limited quantities had created difficulties, but that w-as past history now, and the important questions related to the future. \ Sir Thomas had little to shy regarding the handling of the wool market at the present time. He had not had an opportunity of examining the plans that were being discussed in this country. The proposal to put a Government guarantee behind advances made by the banks oil wool held in the stores lor example was a new one and he would not care to express an opinion about a at that stage. As a general principle it was sound policy for the prices of produce* to meet the market, but he realised that si ceptionai conditions had arisen. One of the points to be considered in connection with plans for limiting offers of wool on the market was the probable attitude of other wool-producing countries. It would be important to know if the Argentine and South African wool was going to he «old in the normal way. He had no doubt that all the aspects of the problem were receiving consideration. , Meat Famine Bogey. hen he left England, added Sir Thomas Mackenzie, the accumulated stocks of New Zealand mutton were getting on the market, but the condition of much of it was not satisfactory, and the consumers were not keen about buying it. The consumption of meat, moreover, seemed to have been reduced in consequence of the restrictions imposed during the war. The initial mistake had been made by the food controller in concluding thai there was going to bo a meat famine in the late years of the war. The controller was quite persuaded that such (apiiuo was coming, and he repeatedly made statements to that effect. New Zealand's High Commissioner was convinced that there ■was no real shortage of meat, and lie made statements in reply to the food controller. "I made three separate attacks upon bis policy," said Sir '-Thomas; "and a£tei each attack he reduced the price of meat, but

in the meantime the meat hod been held too long. The , appearance of the cut-oar-cases was bad, but that was unavoidable. The deterioration of meat through unnecessarily prolonged storage could have been avoided." The "American Market. - The reputation of New Zealand , meat on the British market tfndoubtedly had suffered, owing 'to the Conditions during the war and after the war. That was .a fact that had to be faced, and it was important that the producers here should "realise at tho same time that

[ the competition 012 the British market was 1 exceedingly keen. Other meat-producing countries -were concentrating on this market. He had heard the complaint: that the British market was being asked to take " the New Zealandmutton, while the New Zealand lamb - -went to America. The mutton had been j soiling in England without the lsmb, but people certainly were;disappointed at not getting the lamb. Ho -believed that unless the stores were* congested to overflowing- the lamb, that "had been sent to the United States could have been sold in England. The wholesale, price in England under control had been Is ;14 per -pound. The Americans were keen ohout getting New Zealand lamb, and they would nay a very good price, for it. They probabij could absorb from 1,500,000 to' 3,000,000 car<*ils<-8 without difficulty, but he thought jt;»yight to be a condition of such sales that the Americans took also a proportion of mutton. The difficulty in this respe<4'-was that the American consumers had not h&cti customed t6 eating mutton to any extent. Their own. muffcotr.was .npt,.of* first-tolass quality. He thought that a proportion "of mutton, say 15 to 25 per cent.-, .-could ibo sold in the United States with lamb if the meat was effectively advertised. t

World Shortage of Butler. '

The outlook for dairy produce, 'said Sir Thomas Mackenzie, appeared to him to be food. There was a world shortage of utter, and the market demanded'-(lie commodity. Very little butter would be available from other sources if the New Zealand and Australian supplies were/ withdrawn from'the 1 British market. Siberia used to be a butter-producing country, "and it had great potentialities, bu', was patting no butler into the market at present, and the situation there was very 'doubtful. The output of butter from the Argentine was increasing and had to be regarded as a factor. The prices to be obtained for butter and all other commodities depended, it should be remembered, on the -ability of the buyers to find the money, and • anything that reduced the purchasing power of customers would affect the prices pa id to the producers.