LOW BUTTER-FAT PAY-OUT

New Zealand Herald, Volume LXX, Issue 21392, 17 January 1933, Page 5

LOW BUTTER-FAT PAY-OUT

SIXPENCE A POUND POSITION OF RATA COMPANY [BY TELEGRAPH —OWN CORRESPONDENT] MART ON, Monday What is regarded in this district as the smallest pay-out for butter-fat for 30 years is being made by the Rata Dairy Company for December supplies. The company is paying only 6d a lb., a reduction of 2d compared with the payment for the previous month. In 1903 the average price for butterfat for the season was 7Ad, but the lowest pay-out was 7d. This season's average should exceed because 8d was paid for November, and 9d for October. It is stated that December's low pay-out is due to the fact that the Rata Company over-paid for the previous month, the majority of the other companies having advanced 7d.

Tho larger number of dairy farmers in the district breed fat lambs and, while butter-fat prices do not show signs of appreciation, it is pleasing to note that lamb prices have advanced by to a lb.

TIMBER INDUSTRY HOPE FOR A REVIVAL THE DECREASE IN IMPORTS The low ebb at which the huilding trade in New Zealand has found itself during the past three years, through the hesitancy of the public to take up housebuilding commitments, and the consequent decline in the consumption of timber, are the reasons given by Christchurch merchants for the favourable balance in the Dominion's timber trade. In a review last week of the trade for the past year the Commissioner of Stato Forests, the Hon. E. A. Ransom, said that for the first time since 1923 the foreign timber trade was in favour of New Zealand. " The position is even better than is stated," said one Christchurch merchant, " for included in the importations into the Dominion is a large quantity of ironbark and hardwood poles used in the reticulation of electricity. These have nothing to do with the* timber industry of New Zealand. The main fact is clear, however, that there was a very big decrease in the importation of building timber from the Pacific Coast, while, at the same time, there has been an acceleration in the export trade of white pine to Australia. "If the rimu trade with Australia could be increased it would mean a very big thing to the sawmillers throughout the Dominion, particularly oil the West Coast of the South Island, where the mills are close to the port of shipment," it was added. Mr. H, J. Otley said that no jarrah or Oregon cargoes had been coming into New Zealand for the last 12 months, while Australia was still taking kauri and white pine—the latter for manufacture into butter boxes, among other things. Builders were now using up their low remaining stocks. " We are back to 1914 prices," said a millowner. " Auckland and Wellington imported large quantities of weatherboards formerly from America, and Christchurch and Dunedin took heavy supplies of flooring and lining timber. The position now is that America cannot compete with the local prices, and, as far as I can see, there is no danger of foreign timber coming into New Zealand for some time. If the Railway Department would meet the West Coast millers in the matter of freight on red pine for Australia, we should be in a better position." As an instance the millowner quoted a freight of 2s 4d per 100 super feet for a distance of 21 miles from Greymouth, as compared with Is 4d in 1914. This, lie said, was a great handicap to the industry.

RISE IN WHEAT PRICES

MEANING TO AUSTRALIA HOW THE PENNIES COUNT [FROM OCR OWN CORRESPONDENT] SYDNEY. Jan. 12 Optimism reigns again among those who are interested in the wheat industry in Australia. Wheat prices have taken a definite upward turn, and the feeling exists here, as it does abroad, according to recent cables, that the worst 'is now over. Quotations in Sydney this week have reflected the improvement that has been reported from overseas, and the advance over the rates ruling last week was one penny a bushel. There is a tendency to go to higher levels. A penny a bushel rise may not seem much to the average city dweller, but it affects him vitally, nevertheless, just as it affects all the wheatgrowers of the Commonwealth. It means more money for the farmer, and the circulation of more money in the cities. It means also the augmentation, of funds in London because payment for the bulk of the Australian crop, which is exported, is made through London.

Preliminary estimates of the Commonwealth wheat harvest give an approximate total of 198.500,000 bushels, which would compare with 189,652,654 bushels in 1931-32. Every gain of a penny a bushel represents approximately £827,100 for the whole harvest. This will provide a welcome addition to tho financial resources of the agricultural section of the community. If the wheat market actually hardens still further, there will be great jubilation in the wheat, districts, where so many farmers have been on the bread line, and have been living for nearly two years spoon-fed by tho Governments. The various Governments have been very kind to the wheat men, but that was because of the anxiety to maintain the volume of production. In times of low prices volume plays an important part. And so it is that every penny counts. An increase of a penny a pound in the price of Australian wool means additional revenue totalling £3,600,000. Is it any wonder that tho wool market is so closely watched, and that there was excitement in Sydney this week when the indications pointed to a hardening of the price of wool. On butter produced in Australia" a penny gain would represent about £1,500,000, and a similar increase in the price of cheese would represent £137.000. On these items in the main group of Australia's principal primary products, the advantage obtained by an all-round increase of a penny a pound would be approximately £6,000,000.

BRITISH TOBACCO PREFERENCE DIVIDEND The directors of the British Tobacco Company (Australia), Limited, have declared the usual quarterly dividend on the 6i per cent preference shares. It is subject to the Federal tax of 10 per cent and is payable on January .31.

NEW AUSTRALIAN NOTES Australian notes of the new design are not expected to bo put into circulation for several months to come, and the process by which they will replace the present design will be gradual. Instead of the promise to pay bearer the specified sum in gold, each note will have a declaration that it is legal tender within the Commonwealth of Australia. In addition to tho likeness of the King, a portrait of the Prince of Wales will -be visible when a note is held up the light* '■.