DOMINION-GROWN HEMP.

New Zealand Herald, Volume LXIII, Issue 19416, 26 August 1926, Page 7

DOMINION-GROWN HEMP.

THE COST OF PRODUCTION.

EFFORT TO REDUCE NECESSARY.

I"BT TELEGRAPH.—PRESS ASSOCIATION,! PALMERSTON NORTH. Wednesday.

The annual meeting of the New Zealand Flaxmillers' Association was held to-day. The retiring president," Mr. A. Seifert, said during the year the output of hemp had been about the average maintained in the past few years. The cost of production was very high and an endeavour would have to be made to reduce costs to compete with fibre such as sisal and Manila.

" I will not attempt to forecast the future price of hemp and tow," continued Mr. Seifert. Values of all commodities are falling, but, as hemp has not sold at boom prices since the war, it is just possible it may escape a period of very low prices. The production of sisal has increased in Java and East Africa; and very largely in Sumatra, while in Yucatan, Mexico, where the largest amount of sisal is produced, the production fell very largely until two years ago, since when the output increased considerably. I understand that the body controlling the sale of this fibre has now decided on a 25 per cent, reduction of output. This, no doubt, has lately hardened the price of our hemp." - It was stated that any increase in the Dominion output of hemp would depend entirely on the prices and cost of production. New Zealand fibre was well dressed and was demanded the world over, even lower qualities being readily disposed of in England and Europe at reduced prices. A matter for regret was that the association had been unsuccessful in securing an. adjustment of railway freights to a reasonable figure. At present tho rates were too high for the carriage of hemp. The quality of New Zealand hemp, judging by the graders' reports, had not improved, but millers were of opinion that New Zealand hemp was better dressed than in the past, and that' 1 a large percentage of the low-grade hemp was' due to raising the standard. The graders were of opinion that the quality of our raw material was not equal to that of a few years ago, and that this accounted for lower grades. It was vital that a question of this sort should be settled, as confidence between graders and millers was essential. Mr. Seifert was of opinion that if millers and graders got together with a genuine desire on both sides to come to an arrangement, the difficulties would be overcome.

The following officers were elected: — President, Mr. o.* A. Longhnan; vicepresident. Mr. H. A. Seifert; treasurer, Mr. H. Akers; committee,, Messrs. A. Seifert, A. Ross, J. S. Moir, 11. Berry, W.. Nye, H. A Seifert, W. Signal, J. H. Hume and C. Petersen.

SYDNEY WOOL SALES. CLIP MAY REALISE £50,000,000. Australian and N.Z. Cable Associatipn.' {Reed.. 10.5 p.m.) SYDNEY. Aug. 25. The next Sydney wool sales will commence on August 30. The season's clip is expected to realise £50,000,000,. compared y/ith £65,000,000 for; the previous, season/. THE GERMAN DYE TRUST. CAPITAL OF £55.000,000. LONDON, Aug. 16. ' . The Berlin correspondent of the Times reports that the German dye trust is increasing its capital to 1,100 000,000 marks (£55,000,000), the largest share capital in Germany. »The increase is chiefly due to the absorption of explosive firms and also to an extension of the coal distillation process. , The developments are ucdoubtedly connected with the trust's relationship to the Shell and the Standard Oil groups, with whom they are negotiating for the production of synthetic motor fuel on a commercial scale. < FRENCH WHEAT CROPS. REGISTRATION ENFORCED. Australian and N.Z. Cable Association. (Reed. 5.5 p.m.) PARIS,. Aug. 25. Under a new decree the French farmers will be compelled in future to register with the revenue authorities all their sales of wheat together with the names of the intermediary agents. CHICAGO WHEAT MARKET. Australian and N.Z. Cable Association. (Reed. 5.5 p.m.) CHICAGO, Aug. 24.

Wheat.—September, 1 dollar 351 cents Ker bushel; December, 1 dollar '3BJ cents; [ay, 1 dollar 44 cents.

CALCUTTA TEA SALES. Australian and N.Z. Cable Association. 1 (Reed. 10.5 p.m.) CALCUTTA, Aug. 25, At the Calcutta tea sales broken Orange Pekoe (common) fetohed annas, medium annas, good 16 annas, Pekoe 13|, 14| and- 15 annas, farmings 12|, 13 and 14-| annas.

POWER FROM BEETROOTS.

ALCOHOL PRODUCTION REPORT.

The report to the British Minister of Agriculture and Fisheries of the Departmental Committee appointed in connection with the manufacture of alcohol for power purposes from sugar beet was issued last month. The ' results of the committee's with regard to cost of production are set out as follow: t " The cost of raw material, referred to a gallon of alcohol, after allowing for the value of residual products, should be taken as 5 per cent, of the price per ton of beet. Manufacturing cost, i.e., the total cost of conversion, should be put at the rate of 9d per gallon. Thus, with sugar beet at .£1 and £2 per ton respectively, the cost per gallon of 95 per cent, alcohol net naked at works would be Is 9d and 2s 9d respectively. In addition, there are costs due to denaturation, packages, transport and selling charges." The committee adds that for use in internal combustion engines of present design one gallon of 95 per cent, alcohol is equivalent to less than threequarter of a gallon of petrol. It was possible that if the situation was skilfully handled from the commercial point of view, a market for a moderate quantity of fuel alcohol at approximately the same price as petrol might be secured. The present position with regard to the production 1 of alcohol by syrtthetic processes, it was stated, was obscure, but the effect of the development of such processes would undoubtedly be to exercise a restraining cont il on the price of petrol and other materials. Neither for the production of synthetic alcohol nor for substitute hydrocarbon fuels could it be expected that a reliable "statement as to costs will be available lor & few years.