FARMERS' PRODUCE

Otago Witness, Issue 3467, 24 August 1920, Page 9

FARMERS' PRODUCE

QUESTIONS Or EXPORT.

WELLINGTON, August 20. The Producers' Committee set up in May, at which meat export matters formed theprincipal subject for discussion, had a further meeting, and went fully into matters connected with the shipping of frozen meat and all other produce. Various points arising from the wool conference held in the morning will be dealt with at a further meeting to be called about two weeks hence when further information from the producers' standpoint will be available. The marked improvement in the outlook tor frozen meat export was commented upon, and while the necessity for most careful management in connection with wool was fully realised a hopeful feeling was expressed. DAIRY PRODUCE. Messrs J. Nathan and Co. (Wellington) report as follows under data August 16: From what we can gather it would appear that the Ministry of Pood has again cabled that it must control the market for butter m the United Kingdom, and that it has been, intimated that the authorities at Home would like New Zealand producers to give some particulars of their price for the coming season's output. We understand further that the indications are that, even if an adjustnnsnt to the price of the consumers at Home is necessary, such an alteration would not be looked unfavourably upon. Meantime there seems no doubt that Vancouver is prepared to buy New Zealand butter, but it is a very difficult proposition arranging spread cqn-_ tracts, fixing freights, and then having the whole bvai-vess niadle subject to Government permits. .. The local position is unchanged. The retail price for butter in Australia has been re u cently advanced to 2s 6d per lb. It aeems apparent from Vancouver inquiries that they look for fairly high rates for butter

on that side when their productive season is over and during the winter. There is nothing of very much importance to relate regarding cheese except that the recent straight-out buying has not been renewed. Apparently the London position is

unchanged. The local price of cheese is also becoming an interesting problem, as well as the local price of butter, in view of the recent f.o.b. prices paid for the season's output. However, the public do not seem to mind paying extra for cheese, probably bscause it is not an article of such general use as butter. WOOL AND THE WOOLLEN TRADE. MR JAMES BEGG'S OPINIONS. Several matters of interest to the community were touched upon by Mr James Begg in the course of a brief conversation on Saturday morning, the conversation originating in a passing reference to the conference of woolgrowers, woolbrokers, and representatives of freezing companies, held in Wellington on the 18th inst. Mr Begg remarked that thero had been a serious drop in wool, and this had been brought about by the accumulation of raw materia], and the fact that the woollen mills of the world were not turning out anything like the pre-war quantity of goods. It was

not, however, a glut in the ordinary sense of the term. There was an unlimited _ demand for the manufactured article. "Wool," said Mr Begg, "is one article from a fall in the price of which New Zealand is likely to get little benefit, even from a consumer's point of view; but a serious fall would be ruinous to the producer and country generally." Continuing, he said thai his idea was that accumulation and consequent fall in value was owing to the woollen mills not being able to put through a sufficient quantity, and that eo long ag there was an unlimited demand for the goods being manufactured the price for these goods was not likely to fall. It did not follow that if the price of -wool fell we would get manufactured goods any cheaper. Probably we should in the locally-manufac-tured article, but that was only a fraction of what was used. Many thought that if the price of wool fell we should get cheap clothing, but that did not follow at all, for the reason that there would be a greai demand for the locally-made article. The mills of the world were turning out nothing 1

like what they had turned out in pre-war days, and an increase in the output of the mills would probably mean a reduction in the price of the manufactured article. He thought a solution of the trouble was to get the machinery of the mills of the world working to their utmost capacity, and that meant providing financial assistance to Continental mills and seeing that they were fully supplied with raw material. No immediate relief could be expected from new mills starting in New Zealand, because it would be several years before it would be possible for them to get to work. He mentioned that at the conference he had proposed a motion as to the desirability of assisting the Home Government in the direction of getting the mills worked to their full capacity, and he thought there was a way in which wo could assist, and that was by supplying wool on credit. As a matter of fact New Zealand and Australia were far more interested in Continental mills getting to work than Great Britain was, because wool-growing at Home was small compared with other industries; whereas it was our big industry. Otago and Canterbury werein a rather better position than the northern part of the dominion, in that the demand for fine wools still remained very good, and a considerable portion of our wools were of the class for which there was still a good demand.

Speaking of Armour and Co. obtaining a license to purchase and export stock from New Zealand, he said that the Sheep-owners' Federation had recommended that the firm should be granted a license to purchase stock. There was a good deal of opposition to this, the idea being that this was the thin edge of the wedge, and that the trust might get control of the factories and markets. But all parties agreed that America must take a large quantity of next sea-son's meat from New Zealand. The sheep owners were unable to see that granting Armour and Co. a license was any more dangerous than allowing them, and other American interests, to r>urchase meat f.0.b., and were convinced that in the producers' interests it was better that Armours should buy direct from the producer rather than purchase second hand through a freezing company, or an exporting firm.