AUSTRALIAN OUTLOOK.

New Zealand Herald, Volume LXIV, Issue 19717, 17 August 1927, Page 9

AUSTRALIAN OUTLOOK.

BANK CHAIRMAN'S REVIEW.

SMALLER OUTPUT, HIGHER PRICES

"The outlook in connection with the principal primary products of Australia is not quite as promising as last year," said Mr. J. L. Webb, chairman of tho Commercial Bank of Australia, in his speech at the annual meeting in Melbourne. "In the case of wool, the estimated production for the coming season is about 2,250,000 bales. Owing to the severe drought which has prevailed in parts of Queensland there will be a material reduction in the clip in that State, and it is expected that there will also be a reduction in New South Wales. Conditions have been more favourable in West Australia, where an increase of from 20,000 to 25,000 bales is expected. From present indications it appears probable that for the reduction in quantity there will be compensation to some extent by an improvement in price. "We have had beneficial rains in thf» wheat areas during the past month, and crops are making good growth, and with normal rainfall during the next three months the prospects are that a fairly good harvest will be reaped. It is gratifying to notice the increased production of wheat in W T est Australia. Last season the yield showed an increase of 9,570,000 bushels on the figures of the previous year, and this season a further increase is anticipated. "As a result of recent rains the outlook for dairy produce farmers is more promising. The severe frosts experienced in Victoria in June retarded production, and the total will be short of last season. "Matters connected with the . meat export trade of Australia during the past few years have been in a bad state, exporters having suffered heavjrj'losses. This trade, which represents an export value of approximately £5,000,000 a year, is of considerable importance to the Commonwealth, and its present condition calls for serious consideration on the part of those interested." Mr. W T ebb added that there had been an improvement in several of the less prominent products. As an instance, five years ago the value of poultry and eggs produced in Australia was about £6.750.000. whereas this year it was expected to reach a value of about £12,000.000.