REVIEW OF FARM YEAR

New Zealand Herald, Volume LXXII, Issue 22193, 21 August 1935, Page 7

REVIEW OF FARM YEAR

IMPROVED OUTLOOK DAIRY PRODUCE AND WOOL GOOD PROSPECTS FOR MEAT "A complete sudden recovery is impossible in normal circumstances as we have to re-establish prosperity for New Zealand on a sounder basis than before, which is best achieved by steady progress," states the annual review of Pyne, Gould, Guinness, Limited, Christchurch, for 1034-35, which covers the main agricultural activities of the Dominion. "While the future of the dairy produce market must depend on world supplies, the immediate outlook shows an improvement on last year," states the review. "The wool market lias shown.a keen demand, with rising prices, which is expected to continue. With the prospects for the meat market next season we may all be well satisfied and grateful to the firm stand taken by the Prime Minister and the lit. Hon. J. G. Coates during the recent London negotiations." The Wool Position Dealing with wool prospects, the review states that it would be hazardous to make a definite forecast of future price levels, a problem alike to producers and manufacturers. In March traders anticipated a further drop in, an already depressed market owing to heavy accumulations of stock in Australia and a restricted Continental demand, but they overlooked the depleted stocks in the consuming countries and the fact that Germany could not do without wool altogether. Other developments in Europe all combined to create the recent rise. Present indications were for an improved standard of values in the 1935-36 season.

An optimistic view of the immediate future of the meat industry is taken in the review, which states that as far as next season is concerned the problem appears to be settled, because, with no levy and an authorised quota, there will be room for 500,000 additional lambs from the Dominion. "In view of the reality of what is commonly known as Empire sentiment," the report states, "and the cold facts of the great financial interest which the United Kingdom has in New Zealand, both as a creditor and as a seller of manufactured goods, we are as confident as ever that the final solution will be one which we can accept without fear."

Dairy Market Problems London prices for dairy produce remained at the lowest level for over a quarter of a century and factories had competed keenly for the local market where prices were always slightly above London parity. Plans to stabilise the local market prices had not yet matured, but the reconstituted Dairy Board, armed with legislative authority, had this matter in hand.

"With little prospect at present of an improvement in world prices for dairy produce sufficient to enable the dairy farmer to enjoy a fair measure of prosperity," the review continues, "it is essential that every effort be made to bridge the gap between prime costs and selling prices, and the organisations connected with the industry are facing the problem with greater determination than ever. For several years tho dairy farmer has had 'the thin end of the stick' and relief is long overdue." GREY AND MENZIES, LTD. RESULTS MUCH IMPROVED DIVIDEND ARREARS OVERTAKEN Substantially increased profita are shown by Grey and Menzies, Limited, in the accounts for the year ended June 30. Net earnings for tho year amount to £3092, as against £557 in the preceding year, £224 in 1933, and a loss of £1290 in 1932. The profit added to the amount brought forward from last year provides a balance of £3620. From this the directors recommend the payment of the 1933 and 1934 preference dividends absorbing £560, and a dividend of 6 per cent for the present year on the preference and ordinary shares, absorbing £1829. This leaves a balance of £1231 to be carried forward. The directors' report states that a profit was made by the subsidiary company and was placed to the credit of its profit and loss account. The retiring directors, Messrs. T. H. Barstow and Buxton, offer themselves for re-election. Following are the details of the company's results and appropriations for the last three years:— 1933 193-1 1935 Brought forward .. £97 £321 /i>2B' Net profit .. 224 557 3,0921 £321 £B7B £3.G20! Dividend— Pref. p.c Amount ~ .. Old, p.c | Amount .. . £321 £528 £1,231 'Arrenrs of prof, dividend fir 1932. tArrenrs of prof, dividend for 1933 and 1931 and pref. dividend for 1935. The company's paid-up capital remains unchanged at £30,488 made up of 10,000 preference and 50,976 ordinary shares of 10s each. Reserves at £1165 remain unaltered, while the bad debts reserve has been increased to £SOO from £3OO. Sundry creditors are £1793 against £1505 last year. The item mortgage is £I7OO lower at £3OOO. Assets at £40,567 are not greatly different from last year's figure, £39,037. The principal increflse is in the cash and bank deposit items, which have risen from £IOB7 to £4303. Stocks at £8056 are £1192 lower, while the item current account, subsidiary company, has fallen from £lOll to £2ll. VALUES FOR HIDES CALFSKINS IN DEMAND A stronp demand for calfskins, which made fairly substantial advnriccs in price, occurred at the fortnightly sale of hides held by Auckland brokers yesterday. Hides and sheepskins also were keenly sought, but prices were sjteiuly. There was a full inc and nil classes of buyers operated freely Values for to Mow were unchanged. Prices for best, grades were:— Hides.—Ox (abattoirs), -heavy. Bid per lb, medium, sJcl: light, 45<1 to fid ; country butchers, heavy, 45d to s}d; medium, 44<l to 4|d; light, 4d to 4!d; cow (abattoirs), ltd; cow (country butchers), 4d to 4ld: farmers, alt weights, yearlings (abattoirs), heavy, srl to sjd; light. 6]d to 71d; second grade, <l}d to s{d; cut and faulty, 2(d to 3ld: calfskins. 3lb to sib, 81d to BJd; 6lb to Blb, BJd to 9kl: seconds and cut. 6ld to 7Jd: slippy, 2d to 5Jd. Dry Sheepskins.—Threequarter to fullwool, medium to fine crossbred, 7d to 7Jd; course crossbred, 54d to fid; damaged und faulty, 3}d to 4!d: half-wools, medium to • fine crossbred, fiid to 7d; ccarso crossbred. 5d to njd: damaged and faulty. 2id to 3 Id; bare to Quarter-wools, sound, 3Jd to 4jd: damaged and faulty, 2Jd to 3d. Salted Sheepskins.—Quarter-wools, sound, 2s 4d to 3s each: faulty. Is fid to 2s; threoqunrter to full-wool, sound, 4s 9d to 5s 3d; medium, 8s 2d to 3s lOd; faulty, 2s 9d to 3 a od. Tallow.—Good ounlitv. 21s 3d to 22s per cwt.; second prude, 20s to 20s 6d; third grade and inferior, 16s to ISs.