POTATO MARKET

Southland Times, Issue 20613, 11 October 1928, Page 8

POTATO MARKET

VALUES SOAR WEATHER AFFECTS NORTHERN CROPS THE POSITION LOCALLY During the last ten days or so there has been a sensational rise in values in the potato market. This has been the result of an acute shortage of potatoes experienced throughout the Dominion, mainly attributable to the failure of the North Island crops which suffered severely by the adverse weather conditions. As far as Southland is concerned, it was known practically throughout the season that the crop would not supply the local demand until the end of the season, but it was fully anticipated by merchants that after the local supplies had gone to consumption, potatoes could be landed from Canterbury at equal to, or very little more than, the cost of locals. The general price ruling for locals up to a fortnight ago ran from £7 to £8 10/- per ton. When the shortage occurred, however, local merchants had to look to outside markets, but they found that a rise had taken place, and while they could have bought from Canterbury at £4 10/- per ton, on trucks, country stations, they refrained from doing so. They sounded the market a little later and found that the price had risen by £2 per ton. This price was not indicative of the fast-firming market and in the course of a day or two values jumped up a further £2 and difficulty was experienced in getting supplies even at the advanced figure. Still further advances took place later until £l2 to £l2 10/- per ton was reached—the peak. At these high prices the demand naturally became restricted and merchants refrained from buying more than was absolutely necessary. According to an Invercargill merchant who deals extensively in potatoes, the rise in price seems to have been due partly to an unexpected demand at this stage from the North Island. It was anticipated that North Island markets had sufficient stocks to carry them through until the new crops were available, but this was found not to be the case, the marketing of the new crop was delayed by the bad weather. The rise in values appears to have come as a complete surprise to local merchants who were clearing up their stocks before going to North Otago and Canterbury for supplies to tide them over till the end of the season. The extreme price of £l2 10/per ton does not seem to have been sustained because there have been offerings since at about £ll 10/- per ton. Even so, there is very little likelihood of any further reduction in price until the new season’s potatoes come to hand even allowing for the fact that there is sure to be restricted use of potatoes owing to the extreme prices.