WOOLGROWERS’ PROSPERITY.

Otago Witness, Issue 3662, 20 May 1924, Page 14

WOOLGROWERS’ PROSPERITY.

An interesting review of the Australian industries was given by the chairman ot directors of the Royal Bank of Australia (Mr R. J. Alcock) at the half-yearly meeting of the shareholders on May 2. Moving the adoption of the half-yearly report, Mr Alcock said: “Addressing you six months ago I expressed a fear that dairy products, then securing a gradual, but definite, increase in price on the London market, would early this year experience a sharp fall, similar to that which occurred in the previous March. The slump has taken place, consequently i number of factories which had shipped large quantities of cheese and butter ovei seas will suffer a loss. Last year factories which stored a fair quantity for home consumption during the winter recovered some of their previous losses, but this season the same favourable experience can scarcely be expected, as the Doumecus summer rains which have fallen over most of the agricultural districts of the commonwealth have produced such a wealth of herbage that, so far, the reduction ot output normally expected towards the middle and end of summer lias practically not taken place. On the other hand, cattle are in excellent condition, owing to the abundant winter feed, and dairy cows should come in next spring in better condition than for many years past. “ The cheese market has become depressed to an even greater extent than the butter market. Dried milk, both whole and separated, has, however, experienced recently an increased demand, but prices for these products are always somewhat precarious. “ Undoubtedly the greatest degree of prosperity experienced by our primary producers has fallen to the lot of the woolgrower. The wool-selling season has practically closed, as there only remain about 50,000 hales to sell before June 30. Although the clip only amounted co auoi.it 1,625,000 bales, the high prices realised have yielded a very satisfactory financial result. The number of sheep to be shorn in the coming season may not show much increase over that of the past season, but it is expected that the more favo arable climatic conditions may produce an average increase in weight of fully lib per head. Prices have been steadily advancing since the opening of the sales in September. On merino the advance is from 20 to 25 per cent., comeback and fine crossbred from 35 to 40 per cent., medium crossbred about 60 per cent., and coarse crossbred about 75 per cent. Judging by the wool report from all countries, trade has been fairly good, and the stocks in manufacturers’ hands m the chief consuming centres are so small that the new clip .en arrival at market should find eager buyers. Unless something unexpected occurs the market prospects for the 1924-25 clip are, therefore, excellent. “ The offerings in Australia are .ow carefully regulated by the National Council of Wool Selling Brokers, in consultation with the \\ 00l Growers’ Council. Although in some quarters the extension of the selling season may not he approved, it is undoubtedly necessary. With such high prices ruling for wool, any acceleration in the sales would create too great a strain on the financial resources of the manufacturers, possibly causing some ol them to refrain from buying from time to time. Pur tiler, a reasonable exta ision of the selling season is especially desirable at the present time to avoid embarrassing the hanks in negotiating the large increase in the amount of buyers’ bills in London A well-considered allocation of wool ifferings is absolutely necessary to ensure full competition to the financial gain of the growers and of the commonwealth. In proof of this it is only necessary to state that the 1923-24 clip will yield probably upwards of £50.000,000. The seasonal conditions throughout the pastoral areas of Australia are, with few exceptions, in every way satisfactory.

“The meat market outlook is not bright. This is reflected by the decision of one of our largest freezing and exporting firms to relinquish the business. The inflated prices ruling during the war encouraged the establishment of plants with greater capacity than necessary in normal time®. It addition, the disastrous slump in frozen beef has continued and seems likely to continue. Although the cattle industry, as represented by the larger holdings, is the most primitive of all our industries, it is depressing to feel it cannot hold its head above water without the finan nu! assistance of the Government, which means the general taxpayer. The fierce com petition from South America, which has the advantage of cheaper labour and shorter transport, together with the diminished demand for frozen beef in competition with the chilled article, has virtually killed the trade from Australia, but it is to be hoped it will be only temporary. During the past year the London uarkut for frozen beef and even for chilled beef has been little above the pre-war level of prices. Mutton, however, remains at a price about 70 per cent, above pre-war levels, and is holding its qwn in London.”