The N.Z. Mail PUBLISHED WEEKLY. WEDNESDAY, APRIL 27, 1904. PRODUCERS’ PROSPECTS.

New Zealand Mail, Issue 1678, 27 April 1904, Page 49

The N.Z. Mail PUBLISHED WEEKLY. WEDNESDAY, APRIL 27, 1904. PRODUCERS’ PROSPECTS.

From the clash of arms in the Far East, from the turmoil of colonial or muinicipal politics, it is well occasionally to turn and consider those matters on which the country’s well being and prosperity principally depend. A review of the world’s markets at the present time induces the conclusion that the prospects of our staple industries are, on the whole, very satisfactory. Latest intelligence from London shows that the tendency of the recent wool sales has been to strengthen the value of crossbred wools. As nearly all woolbrokers are agreed that this class of wool will continue to find favour with manufacturers, the prospects of the groAvens of .crossbred are very favourable; and about 80 per cent-, of the wool grown in New Zealand is of this description. Dalgety and Co., Limited, in their Mairch circular from London, state that “ competition for merinos and finest crossbreds wa,s marked by considerable hesitation, at prices 5 per cent. beloAV January closing rates; but medium crossbreds were firm, and coarse active at a 5 per cent, advance.” The report of Messrs Jaeornb, Son and Co. of London, confirms this view, their opinion being even more favourable. “ Apparently,” this firm remarks, “ wool is considerably wanted in the home districts. Heavy and Avasty merinos Aver© generally 5 per cent, down, and coarse crossbreds were 5 to 7 b per cent, above January sales.” Indeed, merino and crossbred wools Avero practically of equal value at the March sales and no alteration of any moment has since been reported. W'hat adds to the favourable prospects of our wool producers is the fact that manufacturers during the past twelve \ months have only bought for immediate requirement®, and now that there is a disposition to buy considerable stocks the price may be expected to still further improve. There are no extensive stocks in manufacturers’ hand®, and whatever wool is placed on the market will do no more than meet requirements. Above all this comes the uoavs that American demands are increasing, and that neither the Continent nor the Argentine will likely be able to grow and export as much wool as they have hitherto done. An increase in the Australian output is anticipated, but the Australian wool being merino, the value of crossbred will not be much affected. In the matter of grain-growing our farmers are not. so deeply interested as they are in the sheep and its products or in butter and cheese. With respect to grain, the crop prospects of Europe and America appear to be only modergood; but the price is not sufficiently high by as much as five shilling® per quarter to warrant a profitable export of wheat from New Zealand to London. The immediate future of mutton does not appear to be so well assured as that of wool, for there are increasing shipments from. Australia and the Argentine, and frozen mutton from these countries enters into competition

with that commodity from Ncav Zealand, and tends to lower the value of our much superior article. Prices have, however, been well maintained for mutton, but lamb has recoded in value. It is, nevertheless, gratifying to note that Messrs Weddel and Co. report that'prices for North Island mutton and lamb have been “slightly raised.” Last' month the price of butter fell, and consumers in this country Avere pleased that they could obtain the fac-tory-made article a penny cheaper. A fail of from five to nine slid lings per humdredwciight in a fortnight is considerable; bub the decline in butter in March is merely a repetition of the fall at the same time a year ago. Still it does not appear as if this decline Avill be cf long duration. Our cablegrams have informed us that the Siberian suppliers cannot market their product on account of the railway being monopolised by the military; and as a diminution is also expected in the Danish output, the prospect is that Neiv Zealand’s export Avill improve in value. At the same time, and oven at the reduced price, the interests of our producer® Aviil not be greatly affected, for dairying Avill continue to bo one of the most profitable of our ' industries in proportion to the area occupied and the capital invested. As has already been noted, money market conditions are reassuring at the present juncture, and with the prospect of the expansion of our producing interest® and of satisfactory export rates, avo see reason to believe that, the prosperity of the colony Avill be avqll maintained 1 .