THE RURAL WORLD.

Otago Daily Times, Issue 21982, 17 June 1933, Page 3

THE RURAL WORLD.

FARM AND STATION NEWS.

By Rusticus

1933-34 WOOL SEASON ROSTER OF SALES Wool sales have been arranged ns folfows for the 1933-34 wool-selling season in New Zealand: — Place. Date. Auckland .. .. November 27 Napier December 1 Wellington .. .. December 7 Christchurch .. ■ December 12 Timaru .. .. .. December 1C Dunedin December 20 Napier January C Wellington .. .. January II Auckland .. .. January 15 Wanganui .. .. January 10 Christchurch .. ' January 2C Invercargill .. January 31 Dunedin .. .. February 5 Timaru February 9 Wellington .. .. February 15 Napier February 20 Wanganui .. .. February 23 Christchurch .. March 2 Dunedin .. .. March 7 Invercargill .. .• March 9 Wellington .. .. March 19 Napier March 23 Auckland .. .. March 27 Christchurch •'. " April (I Dunedin ~ •. April 10 Wanganui .. .. April H Napier April 20 Wellington .. .. April 24 The April sale dates are tentative only, subject to revision, and will be held only if sufficient wool ia available.

Is the Rise Permanent?

It is probable that wool values would have risen to some extent without the influence of American inflation. The staple is strongly situated from a statistical standpoint, the only bulky marketable supplies of merino and fine crossbred wools in sight being the clip which is on the sheep’s back. The recent decided rising

movement ip rates, .however, has been chiefly due to the effects of inflation in the United States. The improvement may be the forerunner of a more or less permanently higher range of commodity prices, which the world’s primary products in particular so urgently need. The t fact should be kept in mind that the inflationary effort in the States is experimental, and until its successful ■ control in that country, and its effects on world values' are proved by extended experience, the sheep owner in Australia and elsewhere will be unwise to consider that rates are rising to a basis which will show permanence. There is always the risk that expectations of decidedly higher woo] returns will revive the market for store sheep, and purchasers will be effected at too greatly advanced figures, which prove a burden if wool prices receive a setback. In 1928, 18s 6d to 24s was paid for attractive young wool-growing wethers off shears. A year later they were worth 12s 6d to 14s, and for the past three years from 6 S to 10s. A repetition of those experiences would be disastrous.

Improved English Exports As far' as the English trade is concerned, the earlier periods of 1933 have shown a welcome increase in export business. That is a cheering development, indicating signs of a revival m foreign business which for some years has trended downward, particularly in regard to iabrics. In March, the shipments of tops, yarns, woollen and worsted fabrics were all larger than during the same mouth a year before. The total exports ot woollens and worsteds from January to March were 24,725,400 square yards, being 2,127,500 square yards more than for the similar period of 1932. Shipments of tops were 11,700,7001 b, the total being slightly greater than the 1932 figures and 4,666,4001 b above the 1931 total. The exports of worsted yarns were 7,239,0001 b. They were slightly less than for the first three months of 1932 J but were 1,725,1001 b more than during the similar period ot 1931. English overseas busjness in tops and yarns had revived considerably last year. Yorkshire has reason for satisfaction in the generally improved foreign demand for the products of her nulls. Considerable expansion in exports ot fabrics is necessary to bring, the volume of business to normal levels, but the increases recorded raise hopes that an upward movement has replaced the gradually dwindling trade experienced during the preceding two years. Imports of fabrics into the United Kingdom have certainly been increasing since the duty on them was reduced from 50 per cent, to 20 per cent, last April. From January to March this year the imports were 2,413,739 square yards, compared with 1,358,679 square yards 12 months before. In the similar period of 1931, however, the figures were 10,093,009 square yards. Despite the recent increase the total remains well below the 1931 level. The figures combined with improved exports denote a greater consumption of wool in the English establishments.

Farm School at Lincoln On June 27 there will bo commenced at the Canterbury Agricultural College at Lincoln a 10 days’ farm which all fanners are invited. The first classes will be held on June 27 and the last on July 7, the daily programme comprising a three-hour session in the morning and a two-hour session in the afternoon. ’The syllabus will coyer amide range of subjects with special regard to current conditions, and will include special lectures and' demonstrations on livestock, breeding, and feeding, with particular emphasis on stock diseases, pasture establishment, maintenance, and management, cropping, seeding, and cultivation, farm accounting, wool classing, and marketing, and the use and care of implements. Waikouaiti Farmers’ Union The monthly meeting of the Waikouaiti branch of the Farmers’' Union was held in the Merton School on Friday. The chairman (Mr William Lee) presided over a large attendance of members. The

Items of interest to those engaged in agricultural and pastoral pursuits, with a view to their publication in these columns, will be welcomed. They should be addressed to “Rusticus,” Otago Daily Times, Dunedin.

correspondence was read and dealt with. Mr Herd moved that members of the Merton district form themselves into a committee with a view to finding out how many boys and young men were willing to join and start a young farmers’ club. At the previous meeting held in Waikouaiti a committee was formed to get in touch with likely members for such a club, but so far the response had not been very great. The chairman introduced Mr 11. P. Aitken, of the Farm Accounting Association of New Zealand, who explained the work and aim of the Farm Accounting Association which has recently been formed. He stressed its advantage to farmers, and felt sure that as time went on, and farmers realised its good, that the association was going to be a big thing. Several members who had their returns made up .by the association this year spoke in eulogistic terms of the work done for them. They felt that they had confidence in the returns made to the Government, and they were more than satisfied with the value of having their returns placed on a businesslike footing.

“ Experimental Agriculture ” From the Oxford University Press of London (with Mr Milford’s compliments) receipt of the first number of the Empire Journal of Experimental Agriculture is acknowledged. The Journal will be published quarterly at a subscription price of 20s per year, single copies being sold at 7s 6d net. This issue contains messages from the Secretary of State for the Dominions and the British Minister of Agriculture. The articles, of which there are nine, covering a variety of sub-' jects, are written by experts, and wherever and as far as is necessary they are fully illustrated by photographs and diagrams. In this first number cereals, grasses, soil and stock are matters of attention, which sho'ws that those directing the Journal intend to make it an organ of extended usefulness. As with all products of the Clarendon Press, it leaves nothing to be desired in the matter of format.

Dairy Produce Market Reporting on. June 12 on the position of the dairy produce markets Messrs A. H. Turnbull and Co. have the following comments to make on current conditions:—The butter market has been steady and rising throughout the month, and it is pleasing to be able to report a firm market, showing an increase in quotations of practically 10s phr cwt as against the beginning of May, The first general firming of the market was influenced by a statement by Major Elliott, the British Minister of Agriculture, that Great Britain definitely intended to defend their policy of quotas at the World Economic Conference. _ This statement immediately gave considerable confidence to the market and a sudden rise resulted.. The market, however, has remained steady and showed a continued firmness, chiefly owing to the fact that Australian shipments have declined very rapidly, whilst the Argentine shipments have also showfi a very heavy falling off. Another factor that has helped to keep the market firm is the fact that there has been no Siberian or South African butter arriving, and, although the quantities from these two countries are small at any time, the total absence of these blitters has certainly helped to give confidence to buyers. Hot weather and a somewhat dry and late spring is curtailing the northern hemisphere production, and this is also helping the situation. Our latest cables advise that the market is firm, with an upward tendency. The Cheese Position ,

Cheese made a spectacular rise at the same time as butter did early in May and, owing to the seasonable increase in consumption, also the fact that the United States of America are buying very considerable quantities of Canadian, the market has continued to firm.- Messrs W. Weddel and Co., Ltd., cable that they expect a further improvement in the cheese market.

There has been a good demand forward for both butter and cheese for forward business, and sales have been nrade during the month at up to IOJd, f.0.b., for butter and Sid for cheese, but in view of the steadily improving position of the markets a large number of factories are more inclined to ship and continue their policy of consigning.

WOOL MARKETING SUGGESTIONS FOR IMPROVEMENT. 7 (No. 1.) The present article is the first of a series of four, supplied by Mr L. Whittingham Bagley, of Dunedin, The writer discusses the subject of the better marketing of wool on broad lines, and bis conclusions should be of interest to pastoralists and others connected with the wool trade. HISTORICAL REVIEW. The wool industry is one of the oldest on record, the first references to sheep and wool dating back to the Babylonian records, made approximately 4000 years b.o. In England the first guild of wool staplers was established in 54 A.p. The first reference to price fixing appears to be in the seventh century. Away back ns far as 1198 levies were imposed on exported wool, while jn 1350 three-quar-ters of the Customs revenue was from wool. Forty-four different kinds of wool were recognised in 1454. Henry VIII in 1534 started probably the first big move towards smaller sheep holdings when he broke up the “selfish policy of a few rich monopolists ” who owned from 5000 to 24,000, sheep. The Royal Command on this occasion read: “That none shall keep above 2400 sheep (exclusive of lambs) at any one time, unless it be on his owm land of inheritance, in which case he is not hereby limited, nor are spiritual persons,” In 1599 a wool market was granted to Leicester. From 1660 until 1825 the export of British wool was prohibited;' even in 1788, when the first settlement of New South .Wales took place, there was a penalty strictly enforced on the export of sheep from the British Isles. The first sheep in New South Wales were fat-tailed Cape sheep and Bengal sheep. These were grazing about the settlement long before the' arrival of the Spanish merino or the larger and well-lleshed Leicester and Southdown. It was soon found that Australia was admirably suited to the growth of fine wool, and after the establishment of the Spanish merino in 1799 in New South Wales Captain Macarthur soon founded what ultimately became the great •woolgrowing industry in Australia. This short comment on a few. of the historical occurrences in the wool industry shows that. a number of improvements, which are ■ still possible, are in some measure related to different progressive steps taken throughout the history of the industry. An historical research shows in a marked degree how conservative and jealous the woolgrowers and workers have been of their product throughout the ages. It shows also that the marketing of wool, and the manufacture and sale of wool fabrics, have been conservatively controlled, shielded, and protected over generations, often hampered, often helped, by various acts of legislation, yet always progressing. . It shows the larger holdings, sheep stations, or flocks of sheep steadily giving place to smaller holdings and smaller flocks, perhaps at the sacrifice of wool quality. It shows the gradual development of powerful and well-equipped commercial interests as agents in the marketing of wool, in the place of the many scattered storekeepers, small merchants, brokers, and the like —in other words, a gradual-trend towards centralisation of marketing. At the present time in every channel of this vast industry we have the paradox of mounting costs and lower returns or prices. The grower is alone in that he cannot pass his higher costs on to the next man, and relatively bears the greatest portion of the burden. We ask ourselves, what will bo the outcome? How long can the woolgrower continue under existing conditions? Looking back over the long history of bright spots and depressions in this industry, one cannot help being struck (with the steady forward progress, and vast changes following the greatest trials. A period of low prices has always brought about some improvement in the producing, marketing, or manufacture in order to counteract the low prices. One section of the industry must not use the plight of any other section as a stepping stone to its own security, but must act in a manner most fitted to improve existing conditions or methods for the benefit of the whole. In short, all sections must recognise mutual responsibilities in the next rapid and colossal forward steps in this romantic industry. SAFELY ESTABLISHED.

One should be safe in stating that a commodity which has proved itself over a period of 6000 years should have little trouble in maintaining its prestige ns against its rivals. Yet it has been seriously challenged at different periods of history by cotton and silk, and now by the latest rival, artificial silk and wool. Wool seems definitely committed to a lower

price level, or one which limits the commercial possibilities of its artificial substitutes. Fortunately; there are inherent properties in wool which will always make it necesskry to man, as long as clothes are to be worn, so for these qualities alone it will always be assured, of a constant demand, and for the artificial. substitute to have an even chance,'science will have to give it the same qualities or make them unnecessary for COMMERCIAL VALUE.

As to the commercial value of wool, it may be well to analyse what can influence the value of wool, and how the different sections of the industry can. assist in improving or establishing prices at payable levels to all concerned. Experience has demonstrated that artificial means of price fixing in any primary commodity does not spell success for the industry dependent on that commodity. It is well known ana Recognised by most thinkers that in the present depression the only hope for generally, better prices for wool lies in world recovery and the revival of world purchasing power; therefore, all that any* section of the industry or any individual can do to help the world tone is to think and act justly along right lines, to try to inspire and then restore confidence, and endeavour in every possible way to further the cause on the side of “ good.” LOWER COSTS.

There are four main sections of the wool trade, the woolgrowers, the woolselling brokers, the manufacturers and allied industries and the wholesalers and retailers catering for the consumer. All the efforts at reorganisation by the different sections may do little to affect wool prices, but each section can find W’ays and means to reduce its own costs and improve the presentation of its product or service so as to get the best from the current, level prices. However, the main effort from the producers point of view must needs be directed at the better marketing of wool, and this mainly affects the operations of the groover and broker. The manufacturer is already alive to the fact that reorganisation of his methods, scientific and ma/ket research, advertising and better salesmanship, are now more than ever before, necessary for the efficient management of his business, POSSIBLE IMPROVEMENTS. Adveristing, sponsored by growers and manufacturers, has already stimulated the interest in the greater use of wool, and the wholesalers and retailers have already assisted by taking advantage of this movement. So with manufacturers and retailers and their allied industries, they are forced to find ways of lowering costs and increasing turnover; and in most countries the lowering of wages, interests, and tariffs will further increase this tendency. The ultimate result will be a greater demand for wool, although it is to be hoped that in the future the definite threat of effective competition from the artificial substitutes will be sufficient to prevent, the recurrence of high uneconomic prices for wool. This will be a big influence toivards stabilisation of values, and, provided the manufacturers efficiently organise, and the groivers meet the buyers’ needs with a standard classification, better quality, and presentation of the raw wool, the prices of the future should be more stabilised than formerly, although always subject, of course, to the current world’s “ tone ” and fashion.