AUSTRALIAN PRODUCERS

Otago Daily Times, Issue 23082, 7 January 1937, Page 6

AUSTRALIAN PRODUCERS

EXPECT A PROSPEROUS YEAR BUOYANT WOOL AND, WHEAT (From Our Own Correspondent) SYDNEY, Dec. 31. Optimism surges among Australian primary producers as they contemplate 1937. They look forward to a year of great prosperity. Wool is at its best level for years, and a general price advance of from 5 to 10 per cent, is expected in the next few weeks. The fat lamb market is brisk, and a good export trade is awaiting supply. Wheat is at 5s 7d a bushel, compared with 3s 9d a year ago, and is likely to stay buoyant. Recent rain opens up the heartening prospect of the end of the long dry spell in the coastal dairying districts, and a big production increase is expected. The wool market has not been so buoyant for several years. The sales closed in Sydney on December 19 with prices showing an advance of 50 per cent, on the opening series in September, and woolgrowers confidently expect even better returns in 1937 than they have enjoyed for several years past. The tendency, it is expected, will be not towards spectacular rises, but to a steady and progressive price increase. Factors governing the position are the general improvement in world markets and the new Australian-Japanese trade agreement, by which Japan will again be a competitor for the golden fleece. For fat lambs the prospects are particularly bright. The fat lamb market is brisk and profitable. So far, the quota allowed by the Ottawa Agreement has not been filled, and 1937 will provide an overseas demand for fat lambs that is expected to do much to stimulate this side of the industry. The wheat market for 1936 closed on the best price average for some years. Although the 1937 wheat crop will not be sown until March, it is expected that the present high prices will result in the sowing of an increased acreage. Agricultural experts said'this week that the 1937 crop prospects depended wholly on seasonal conditions and the state of the market, but with the existing world demand for good quality wheat there was no reason to assume that present prices would not be maintained. They possibly would be exceeded. Turning their backs on the worst year they have experienced since 1915, dairy farmers now look forward to a much better time in 1937. Protracted drought in the dairying districts of the north involved producers in heavy loss during the year, production falling off to the extent of 50 per cent. The breaking of the drought has brought new hope to dairymen, and, with further liberal rain’ in the near future, production of dairy produce will be back to normal. Fruitgrowers have experienced a good export season and look forward to satisfactory conditions in 1937. Australian citrus growers in the present year have been favoured by the lightness of the crop in California. Another favourable factor was the granting of the bounty on citrus fruit exported to the East and to Canada. Increased benefits are expected now from the recent restricted lifting of the New Zealand embargo on New South Wales oranges.