SUGAR MARKET.

Otago Daily Times, Issue 19529, 11 July 1925, Page 2

SUGAR MARKET.

WORLD PRODUCTION INCREASING. DOWNWARD TREND IN PRICES. PROSPECTS FOR SUGAR-BEET GROWING. "The sugar market is tending’ downwards as regards prices,” stated a man who is in touch with the market, speaking to a Wellington Dominion reporter tho other day. "The reason for this,” ho added, "is increased world production. In Europe during tho‘ past year tho production of sugar beet has increased by five to seven million tons, and cane sugar likewise has considerably increased in quantity all over the world, although not to tho same extent as the beet variety. Tho estimated production of sugar this year —beet and cane —will be a little over 22,000,000 tons. That is a world estimate, and represents an increase of about 3,000,000 tons over last year’s output.” RETURN TO NORMAL CONDITIONS. Tho increase in production indicated a return to normal conditions alter the war, ho continued. In Queensland tnc production of cane sugar was estimated at 200,000 tons ill excess of national requirements, and the estimated production in Queensland this year v.ould bo between 450,000 and 480,000 tons, jn Australia, tlic position w&s that with the "White Australia” policy they had an almost absolute prohibition of imported sugar which had boon produced by black labour, with the result that there were no such importations, and there was a fixed price bams which gave the grower a water-tight market, thus enabling him to pay a much higher price for the cane than he would otherwise be able to do. Tho Queensland grower secured by moans of a pooling arrangement, a price which was averaged as between a fixed relatively high price internally and the world parity on tho quantity that rvuat necessarily be exported. This arrangement was carried out with tho idea of maintaining the possibility of , sugar production in Queensland under “white" labour conditions. Sugar in New Zealand was refined,- and sold on a basis of world parity, with a small protection of one farthing per lb on imported refined sugar. AVOULD SUGAR BEET PAY ? ■When questioned about the possibility of growing sugar beet in New Zealand on a commercial scale, our informant stated that ci-owers would be laced with a heavy cost in the matter of growing the beets,_ which had to be cultivated under an intensive system and that consideration ala once opened the question as to whether the cost of production and selling at the world parity would make sugar beet growing in New Zealand a profitable venture. "It is doubtful whether we could induce the farming community to undertake the production of sufficient beets —at the price they would receive for them—to enable cultivation to bo earned out at a Pl lt lt ’would 6 be quite possible to cultivate sugar beet in some parts of New Zealand, 3 nd Canterbury, be thought, would afford the host facilities for growing. Ihe Auckland climate, he considered, was too humid. Lt recalled the fact that several years ago the possibility of producing sugar in Dm Waikato had been considered, but the conelusions arrived at had been adverse. CONSUMERS WILL BENEFIT.

‘The present doxvnward trend of prices on (he <u"aT market,” he concluded, will no reflected in the benefit that too consumer will receive from the big xvorld production in the maintenance of reasonable prices tor all commodities of xvhich sugar forms a large proportion.” __________