THE HEMP MARKET

Southland Times, Issue 19396, 10 November 1924, Page 6

THE HEMP MARKET

A BRIGHTER OUTLOOK DEMAND FOR SOUTHLAND FIBRE During the past four or five years flax millers all over the country have been suffering from the effects of the depression in the hemp market owing to an absence of the pre-war demand for fibre in the Home’markets. This depression has been more particularly felt within the last two years, and last season only about 15,000 tons were shipped from New Zealand in comparison , to an average of 28,000 tons annually before the war. In the opinion of merchants it is unlikely that this pre war figure will ever again be reached, owing to the large and increased production in other countries which makes the. Dominion’s quota to, the markets of the world merely “a drop in the bucket.” However, this season the demand from overseas has greatly increased, and everything indicates that the millers, many of whom have not been in business during the slump, and who are now again opening their mills, will operate with a fair margin of profit. , DUE TO MEXICAN INSURRECTION. The sudden demand for the New Zealand fibre can be traced directly to the situation in Mexico and the consequent dearth of sisal hemp, the Mexican product which is largely used for twine manufacturing overseas. During the recent guerilla warfare and lawlessness that has been rife in that country, vast stores of sisal hemp were wantonly destroyed. Crops, bales and storehouses were burnt and the losses have readied 1,500,000 bales. As a result buyers have turned their attentions to the Manila products, but owing to the limited amount of Manila fibre available, the demand has also been centred on the New Zealand flax fibre and the shipments from the Dominion will be much larger. MILLS RE-OPENING IN SOUTHLAND. The prices ruling during the past few weeks have been good, although not exceptional, but in the last fortnight, there was a decrease of about £2 per ton. The market however, is still satisfactory from the miller’s point of view and 15 more mills are operating in Southland this year than there were last season. A local merchant stated to a Southland Times reporter on Saturday that the shipments this year should exceed 20,000 tons.