THE HIDE MARKET.

Otago Witness, Issue 3085, 30 April 1913, Page 16

THE HIDE MARKET.

DEPARTMENTAL REPORT. In view of the enhanced value of hides and skins on Now Zealand markets, the Director of the Live Stock and Moat Division of the Department of Agriculture (Mr (J. J. Rcakes) recently, according to the department’s Journal, asked Mr A. Crabb, the Government’s London veterinary officer, to investigate the hide and skin position in Great Britain. Mr Crabb’s report is as under: — 1 note tiro conditions existing in New Zealand, as described in your memorandum, and find, on making inquiries, that a similar state of affairs obtains here — namely, that values have bad an upward tendency for some considerable time, and the demand undoubtedly exceeds the available supply, and that it is considered more than likely that such conditions will not only continue bftt may probably become more acute. Dealing first with the actual prices: An examination of the ordinary market quotations shows that the value of hides has been increasing more or loss regularly for gome years, and the following extract from the Leather Trades Review of November, 1912, shows the position: “Since February last hides have gone up a« much as |d per lb. From 1894 to 1906 the prices went up steadily, dropped slightly in 1907, since when they have ruled gradually higher until, in the spring of this year, they touched 7d. To-day 7RI has to be paid for hides of good quality.” The above refers to Great Bi ita'n, while an American report of October. 1912, states: “Market active; prices high—fully jd higher than record prices of 1909; up to 19 cents.” As an illustration of the more or less steady increase in value, the following quotations may he of interest; they are London prices and refer to ox and heifer bides tfirstl: but a similar rise in price is noted in hides of all grades:— 901 b 591 b and upward®, and under. January Per lb Per lb. 1909 ‘ 51 d 4RI 1910 6J d 53d 1911 5Jd 5 Id 1912

During the year 1912 the rise in value was very marked, the price increasing month by month until in December last 901 b and up were quoted at 7|d, and lightweights at 7\< 1 per lb. During this month the prices have eased slightly, the latestquotations being 6|d and 6Jd respectively;

oSfn this, however, being an increase o i lf;d to 2d per lb in four years. As to the cause, I find that this question has been exercising the minds of tlioso interested in this country for some considerable time,, and various reasons have been given for the disturbed state of the market; it is not, however, considered to be due to any trust or market mauipulatidhs, but the result of a genuine and gradually increasing shortage. Statistics show that, in most countries, the increase in the number of cattle is not in proportion .to that of the human race, and that there are now less cattle per thousand of the population than was the case some years ago. Other contributing conditions are (as in New Zealand), increase of dairying resulting in decrease in weight of hides, increase of individual wealth and of demand for luxuries, the lastnamed involving a decided increase in the uses to which leather is put. Again quoting from the Leather Trades Review of November, 1912, I find the position dealt with as follows: —‘‘Owing to a variety of causes, one of them being tho rapid development of the motor car industry, there i.s an unprecedented demand for leather and a great shortage of hides. . . . there is apparently not the slightest likelihod of any drop in prices taking place; indeed, 'the tendency is rather tho other wav.”

Then, dealing with the cause, the sanio report continues: “A greatly increased demand has. doubtless, contributed something to the shortage of hides, but the more important factor is that, both here and abroad, fewer cattle arc being reared. In America alone during the last 12 years, while tho population has increased 25 per cent., the supply of cattle has shrunk by 7 per cent.”

The figures available show that the number of cattle to each thousand of population decreased in tho United Kingdom, the United States, the Argentine. Australia, New Zealand, and Ind : a. On tho other hand, Canada and Russia show a slight increase. The increases, however, have not been sufficiently large to balance matters, as from tho latest statistics available the proportion of cattle to inhabitants of the whole world is as follows:—In 1830 there were 192.000.000 cattle as against a population of 411.000,000. or 467 cattle to every 1000 inhabitants; in 1908 the figures were 269.400.000 cattle to 572.700,000 people, or 383 cattle per thousand.