MONEY FROM LAMBS

New Zealand Herald, Volume LXXI, Issue 21765, 3 April 1934, Page 5

MONEY FROM LAMBS

I'ASTOKALISTS BENEFIT EXPORT 'TRADE IMPROVES CONSIDERABLY HIGHER RETURN While it is estimated, that woolgrowors in the. Auckland province have received a cheque this season larger by about £600.000 than in the previous season, it is equally pleasing that the sheep farming industry has made a rapid recovery in another direction—that of raising fat lambs. If present indications prove substantially correct the industry will receive this year for its fat lambs about £.">00,000 more than in the 1932-3.'! year. In view of the higher returns secured for wool and fat lambs, it scenis evident that many graziers will again bo able to show a, profit on their operations. The healthy state of the industry is in striking contrast to that of dairying, in which the butter-fat returns remain below the average cost of production. With the dairy farmer the only bright features of tho current season have been the more payable prices for sidelines, such as pigs and. bobby calves. That th<' increase in returns from fat lambs should be almost equal to the higher wool cheque is e\ ideueo of the extent to which the Auckland province has developed dual-purpose grazing. In recent years: there has been a marked improvement, in the quality of lambs exported from the province and the standard is now about equal io that of Canterbury. The majority of lambs now find a place in "best North Island quality." Improvement in Prices - Tho estimate, of an increase' of £o()0,000 in the return from lambs is based on the killing ot 1,000,000 at works in the province during the current season, which will end in June. The million mark was reached last season. Previous estimates have indicated a reduction of about 10 per cent in tho numbers killed owing to a decrease in flocks over the depression years. However, lambing returns were satisfactory, and the higher prices ruling have had the effect of bringing out all the stock available. Lambs which in the previous- season were selling for 12s to 14s, this season have been bringing from 22s to 245, a rise of 10s. Throughout the season the prices paid by exporters have been about 2-} d per lb. higher. The schedule of rates opened at 7d per lb., compared with 4d in the 1932-33 season. Comparative prices in December were 6jd and 4 id, in January 6?d and old, in February and'4jd, and in March 7|d and 4id. The operations of exporters liavo been particularly keen and all areas in the province have been combed consistently for drafts suitable for the trade. This activity has contributed to a. maintenance of killings at a high level, although actual numbers available may not have been as great. At ihe present time the freezing works are operating at a rate equal! to, if not better than, the previous season. The exporting firms are participating in a season the liko of which has not been experienced for some years. ' .

Strong British Market The strength of the British market this season has been an outstanding feature. There has. been no attempt at restriction in supplies from New Zealand and the chief aim appears to have been to market quickly. In spite of the heavy supplies that such a policy has induced, the market has maintained a buoyant tone at satisfactory prices. The position must be attributed partly to the compulsory reduction in Argentine shipments, while there appears to be a steady growth in the consuming power of the British public. In contrast with the trend of prices in recent years, values on the Smithfield market actually showed an improvement prior to Easter. This had the effect of raising local export rates to 8d per lb., which is equal to the rates paid at the opening of the season for early shipments for the Christmas trade. If this improvement is maintained the present estimate of the increased return for the season should bo strengthened. The sheep farming industry is now preparing- for even greater production in the coming season. The heavy reduction in killings of wethers and ewes indicates a tendency to preserve existing flocks. In addition, large importations of breeding ewes have been made from the east coast, and these have all found ready disposal.