KAURI GUM EXPORT

New Zealand Herald, Volume LXXV, Issue 23117, 16 August 1938, Page 5

KAURI GUM EXPORT

AVERAGE PRICE DROPS FALL OF £2O A TON LOWER GRADES SELL FREELY "Prospects for the kauri g,um industry are reasonably good," said a prominent merchant in Auckland yesterday, reviewing conditions over the past month. "The market is firm for chips and lower grade gums, which are selling freely, but better quality gums are very slow." Exports of kauri gum from Auckland in July recovered from the small total in the previous month, but there was a sharp decline in the average price. Figures just issued by the Customs Department show that a total of 204 tons was shipped overseas in July, against only 100 tons in June and 251 tons in May. The exports in May were the highest for over six months, and last month's shipments can bo regarded as most satisfactory.

On the other hand, the average price dropped from almost £6O .a toil in June to about £lO last month. This is the lowest value for over 18 months, during which time values have ruled at exceptionally high levels. The price in July, 1937, was £SO a ton. Total value in July was £BIO7, against £5997 in June and £11,877 in May.

The United Kingdom again proved the mainstay of the market, and its purchases increased by 8-1 tons to the large amount of 144 tons. Canada also bought considerably more, and shipments rose from 21 tons in June to 50 tons in July. The United States, however, took only three tons. Australia and the majority of Continental purchasers did not enter the market, with the exception of the Netherlands, which accounted for seven tons.

"The reduction in the average price is wholly due to large shipments of chips during the past month," said the merchant. "Orders from America have been very poor, and an improvement from this quarter would be welcomed. It is expected that large quantities of lower grade gums will be shipped this month. "The weather has been against digging recently, and merchants have been, unable to obtain as many chips in good condition as arc required. Following the understanding between the Primary Products Marketing Department and merchants to keep diggers free of accumulated stocks, heavy purchases have been made, with the result that supplies in merchants' hands of everything except chips are heavy. The arrangement has been working well for the diggers, but not so well for the merchants. The high prices paid to diggers have made it difficult for merchants to unload stocks. They are now presented with a problem, as if the gum is kept any length of time it deteriorates and loses weight. Although merchants do not expect to lose on the* deal, it is, nevertheless, difficult to obtain markets for any grades from B2 upward."