THE RURAL WORLD

Otago Daily Times, Issue 23044, 21 November 1936, Page 3

THE RURAL WORLD

FARM AND STATION NEWS

By RU3TICUS.

Items ef interest to those engaged in agricultural and pastoral pursuits, onth a view to their publication in these columns, will be welcomed. They sbpuld be addressed to Rusticus, Otago Daily Times, Dunedla.

1936-37 SHOW SEASON ROSTER OF FIXTURES Agricultural and pastoral shows have been arranged for the 1936-37 season as follows; November 21.—Taieri, at Outram. November 2* and 25.—North Otago, at Oamaru. , November 26 and 27.—Clutha and Matau. at Balclutha. November 28.—Winton. December 1 and 2.—Gore. December 2. —Central at Omakau. _ , , December 4.—Maniototo, at Ranfurly December s.—Wyndham. December s.—Tokomainrc Farmers, Club, at Milton. December 8 and 9.—Southland, at Invercargill. December 10. —Owaka. _ . December 11 and 12— Otago, at Tahuna P a rk December 19.—Otago Peninsula, at Portobello. . December 26.—Tuapeka, at Lawrence. 1936. January 9.—Blueskin, at Waitatl. January 16.—Waikouaiti. January 22.—Palmerston and Waihemo. at Palmerston. March 6.—Upper Clutha. at Pembroke. March 20.r-Temuka and Geraldine, at Winchester. Coming Wool Season Prospects are considered excellent for the first of the 1936-37 series of Dominion wool sales to be held at Auckland on November 28. However, with delays to shearing caused by broken weather and labour difficulties in the wool stores, there is some doubt whether even this year’s reduced catalogue may be filled. Wool was coming into store fairly slowly until last week, but it is now moving in more .rapidly, and if the fine weather experienced during the past few days continues a last-minute rush is expected. The wool coming forward is a good, bright sort, quite equal to last season’s clip in quality. There has been a greater tendency toward classing this year, and this has further increased handling difficulties, although, owing to the nature of foreign competition, it will result in an increased return to the growers. Some growers have asked brokers to hold their wool for the second sale, but brokers generally advise against this, in view of the good prospects for the opening sale- They also point out that space cannot be booked for the second sale until the wool actually comes into store. The limit for the catalogue for the first Auckland sale is 20,200 bales, compared with 25,000 bales for the opening sale last season. The Sydney Market

.Competition for wool has gained further strength at last week’s Sydney sales. Values for the raw materials have been supported by an advance in prices for merino and crossbred tops in Bradford and a higher level for tops on the Continent. The Antwerp futures market for tops has risen 5d per lb since the season opened and when France was on the gold standard. The franc was devalued in late September. Since that time the price of gold has advanced, and values for metals generally and other commodities have also appreciated. Improvement in rates for wool, therefore, arises from general causes which have favourably influenced the prices for most primary products. Rearmament expenditure has been an influence. The test of the wool market will be seen when retail prices fully reflect the higher cost of the raw material. Current figures are not excessive, taking into account the depreciation in currency values which has occurred almost over the world since 1931, but the consuming trade evinces some anxiety regarding the risk of rates for the staple outpacing purchasing power. Commonwealth Turnover

"Returns issued by the National Council of Wool-selling Brokers of, Australia show that sales of wool in the principal selling centres of the Commonwealth from July 1 to October 31 totalled 715,094 bales, which realised £12,509,083. Compared with the similar period of the preceding season, the quantity sold shows a decrease of £40,245. The greasy and scoured wool sold averaged £l7 9s lOd per bale, or 13.64 d per lb during the corresponding period of 1935. The greasy wool sold during October averaged 14.08 d per lb, compared with October, 1935, 12.84 d; October. 1934, 9.4 d; and October, 1933, 13.5 d. The following figures show the quantity of wool sold, the amount realised, and the average secured for greasy and scoured wool from July 1 to October 31 during six seasons:— Average

During the four months receipts of wool at the stores in the principal selling centres of the Commonwealth totalled 1,741,916 bales, an increase of 26,589 bales compared with the similar period of 1935. World Wool Supplies This season the wool available for manufacture is expected to be practically similar to. the quantity available last season. Production is anticipated to be larger. Australian and South African clips will probably show a total increase of 200,000 bales. Carryover stocks in most quarters at June 30 last year were, however, less than 12 months before, and that decrease is likely to offset the somewhat larger quantity grown. The following figures compiled by the Imperial Economic Committee show the estimated clip of the world for the past eight seasons:—

The total for 1935-36 is the approximate equivalent of 11,833,550 bales of Australian weight. Since 1932-33 world production has decreased about 626,000 bales. The quantity of wool produced in Australia comprised 26 per cent, of the world’s clip, but the merino grown in Australia represents 58 per cent, of the total quantity of that type produced in the world’s chief sheep pasturing countries. Buying and Its Effects The above figures are of particular interest this season, owing to the lack of Japanese buying in Australia and its marked activity in South Africa, New Zealand, and South America. The value of Japan’s competition to Australian sales, particularly during the depression years, cannot be disregarded. Her total imports of wool in 1935-36,' however, were 290,800,0001 b, 8 per cent, of the world’s clip, and 14 per cent, of the production of the four principal exporting countries of the world—Australia, New Zealand, South Africa, and South America. Despite the introduction of artificial fibres, the quantity of wool grown in the world annually has only about equalled the quantity consumed. Japan’s activity elsewhere has deprived Yorkshire, the Continent, and the United States of the opportunity to obtain normal supplies in South

Africa, New Zealand, and South America. As a result, the consuming countries mentioned have found it necessary to secure large weights in Australia. It may be that if business had not shown such general revival the absence of Japanese competition would have produced more ill-effect at Australian sales. At the same time, the world parity of prices would have eventually prevailed. Results would be less satisfactory if the world had a surplus wool production, but under existing circumstances Japan’s buying elsewhere cannot escape having indirect effect on demand in Australia. Export of Cheese Shipments of cheese last month were 5565 tons, compared with 6689 tons in October, 1935, a decrease of 1124 tons. For the three months ended October 31, shipments totalled 15,148 tons, compared with 15,648 tons for the corresponding period of last year, 3 decrease of 500 tons. Details of the three months’ shipments compare as follows:

Total tons .. .. 15,148 15,648 Shipments of butter from Australia to the United Kingdom last month were 8445 tons, compared with 10,804 tons in October, 1935, a decrease of 2359 tons. For-the three months butter shipments totalled 15,557 tons, compared with 17,952 tons last year, a decrease of 2395 tons. Shipments of Australian cheese to the United Kingdom for the three months totalled 861 tons, compared with 1387 tons for the corresponding period of last year, a decrease of 526 tons. Butter Shipments Shipments of butter from the Dominion last month totalled 13,630 tons, compared with 14,537 tons in October, 1935, a decrease of 907 tons. According to information supplied by the Dairy Board by arrangement with the Primary Products Marketing Department, shipments of butter for the three months ended October 31 totalled 32,303 tons, compared with 32,737 tons for the corresponding period of last year, -a decrease of 434 tons. Details of the three months’ exports compare as follows: —

ROARS OF APPLAUSE STOCK JUDGE CHEERED IN ARGENTINA MARION ADJUDICATOR The somewhat staid proceedings of judging at agricultural shows in New Zealand had not prepared Mr- Isaac Andrew, of Marton, and formerly of Canterbury, for the enthusiasm of the crowd when he was judging at the international show'at Palermo, Buenos Aires. Mr Andrew said that when the championships were awarded the judge’s decisions were greeted with roars of applause, and later, when he gave demonstrations of the sheep breeds he had been judging, the big gathering round the ring was equally hearty in its applause. One of the main impressions left on Mr Andrew by the people of the Argentine was their tremendous enthusiasm for stock, but he was equally impressed by the extent of the estancias and the size of the herds and flocks—the people spoke of small paddocks of about 400 acres and of herds of cattle in much the same way as New Zealanders spoke of flocks of sheep. Of the reception given his judging Mr Andrew was reticent, contenting himself with the remark that he seemc’d to “do all right,” but reference to newspapers which featured the show discloses that the New Zealand judge made a most favourable impression. “The spectators had a good opportunity of appreciating the notable qualities of Mr Andrew as a judge, for he is one of the most competent judges , who has ever graced the Palermo ring . . .” ran one report. “ One outstanding characteristic of the New Zealand expert is that he is quite willing to explain .to any exhibitor who considers, his animals were harshly treated in the prize ring the reasons why his ram or ewe was not awarded the championship. Mr Andrew is fighting for a standard, the standard that has made the name of New Zealand as a producer of prime lamb and good wool, and who can blame him? ”

tity comprised 680,986 bales of greasy wool, which realised £11,799,609 9s 7d, with an average of £l7 6s Id a bale, or 13.35 d per lb, and 34,108 bales of scoured wool, which realised £709,473 16s 6d for an average of £2O 16s a bale, or 21.42 d per lb. The average prices realised for greasy wool for the period July 1 tv. October 31 in the last five seasons are shown in the following table;—

LAMBING RETURNS NORTH ISLAND PERCENTAGE HIGHEST SINCE 1933 The estimated percentage of lambs for the current year for the North Island is 90,50, which, with the exception of the 91.23 per cent, in 1933. is the highest for six years. The Director-general' of Agriculture announced recently that the total number of breeding ewes in the North Island is 10,300,826, and the estimated number of lambs this year is 9,322,476, giving a percentage of 90.50. The figures for the North Island sheep districts are as follows:

The North Island figures for the last six years compare as follows: —

‘Estimated. The figures for the South Island are not yet available.

BUTTER MARKETING SYSTEM IN AUSTRALIA EQUALISATION OF PRICES BREAKDOWN OVERCOME As a result of the recent decision of the Privy Council in the James case relating to the Commonwealth marketing methods, the problem of interstate trading and price cutting in butter threatened to become a serious embarrassment to the Commonwealth Dairy Produce Equalisation Committee in maintaining market stability. Recently, however, it has been announced that the problem has almost been overcome. The settlement of this question is expected to remove a good deal of unrest which has ■ existed in the domestic trade since the decision. EXCESS SUPPLIES EXPORTED The Australian equalisation system has been in operation for some time. Each month the maximum amount of butter and cheese that may be sold in Australia is determined, and the balance necessarily is exported, regardless of the price ruling on the overseas market. For instance, only 38 per cent, of the butter produced in Australia this month may be sold on the Australian market, and ,the remainder, 62 per cent., will be sent overseas. The price of butter in Australia is arbitrarily fixed at 140 s per cwt., but any excess supplies shipped abroad have to be disposed of at the ruling market price overseas. The Commonwealth Dairy Produce Equalisation Committee, Ltd., has the duty of calculating the return from all butter sold in Australia and abroad, from which it strikes an average Australian price. Should the return from butter sold on the London market rise to 140 s Australian currency or more, the need for equalising the home and export prices would vanish, and no horns consumption quotas would be determined. If the London price should rise 'sufficiently to bring a return in Australia considerably in excess of the fixed Australian price of 140 s per cwt., it would bo more profitable for merchants to export butter than to sell it on the local market, and unless appropriate steps were taken there would tend to be a shortage in Australia. SYSTEM UNDERMINED Since the inauguration of the dairy produce equalisation plan the London price of butter has not risen sufficiently to give a return to Australian producers in excess of 140 s per cwt, although about a year ago it rose for a short period very near to it. With the system undermined by the Privy Council decision it would now pay any. merchant to sell butter in excess of the statutory quota on the Australian market—that is, of course, if all other merchants did not do the same thing at the same time.

At the present London price of 110 s per cwt, for choicest salted Australian butter the net return to the factory is approximately 124 s 5d per cwt. Therefore any merchant or distributor who is able to obtain a market for butter in Australia at or slightly less than 140 s In excess of the statutory quota—for November 38 per cent. —benefits considerably compared with other merchants and distributors who remain parties to the equalisation agreement. Of course, if all merchants decided to take advantage of the higher Australian price the domestic market would be broken and the Australian price would be determined, as it was formerly, by London values.

Amount. Per lb. Bales. £ d. 1931 .. 647,856 6,898,960 8,1 1932 .. 763,621 8,926.542 8.93 1933 .. .. 814,573 14,568,531 13.9 1934 .. .. 603,434 7,628,912 9.6 1935 .. .. 762,026 12,549,328 12,94 1936 .. .. 715,094 12,509,083 13.64

lb. 1928-29 3,899,500,000 1929-30 3,963.000,000 1930-31 3,847,000,000 1931-32 3,845,600,000 1932-33 3,862,500,000 1933-34 3,744,700,000 1934-35 3,680.800,000 1935-36 3,668,400,000

1936. 1935. Tons. Tons. London 12,949 13,639 Avonmouth and Cardiff 802 565 Liverpool 426 466 Manchester 572 469 Glasgow 256 404 Other countries .. .. 43 105

1936. 1935. Tons. Tons. London 24,548 26,660 Avonmouth and Cardiff 1,718 1,210 Liverpool 1,602 1,384 Manchester 2,236 1,585 Glasgow 1.860 1,614 Honolulu 64 50 Panama Zone .. .. 114 138 Other countries .. .. 161 96 Total tons 32,303 32,737

* Average Price July 1 to Bales. per bale, per lb. Oct. 31 . Sold. £ s. d. d. 1932 .. 704,765 11 11 0 8.63 1933 .. 757,142 17 12 10 13.44 1934 .. .. 565,934 12 8 11 9.32 1935 .. .. 718,894 16 6 3 12.58 1936 .. .. 680,986 17 6 7 13.35

Estimated Estimated Breeding p.c. of No. of ewes. lambs. lambs. Auckland 2.160.423 87.01 1,898,104 Gisborne-' 3,084,057 Hawke’s Bay 4,120,839 89.27 Wellington .. 4,007,561 93.33 3,740,315 North Island 10,300,826 90.50 9,322,470

Estimated Actual No. of average No. of breeding p.c. of lambs Year. ewes. lambing. tailed. 1930 .. 10,300,826 90.50 •9,322,476 1935 ■ .. 9,697,231 83.68 8,500,075 1934 .. 9,524,065 88.70 8,555,477 1933 .. 9,318,943 91.23 8,385,509 1932 .. 9,170,996 89.10 7,988,560 1931 .. 9,247,005 86.49 7,813,887