LOW PRICES

Southland Times, Issue 25312, 15 June 1935, Page 4

LOW PRICES

PRIMARY ‘ PRODUCE REVIEW BY BANKER (Special to the Times.) Wellington, June 14. k Reference was made to the primary industries by Mr William Watson, chairman of directors, at the annual meeting of proprietors of the Bank of New Zealand to-day. He said:— In view of the serious outlook for dairy produce owing to low prices and the possibility of quotas, the Government last year set up a commission to report upon the conditions of the dairy industry in New Zealand, and consequent thereon an Act was passed under the style of the Agriculture (Emergency Powers) Act, providing for the establishment of an Executive Commission of Agriculture with power to regulate Marketing and Production and to coordinate the work of the several boards and other authorities exercising powers in relation to the Primary Products of New Zealand, and generally to enable effect to be given to the recommendations of the Dairy Commission.' The Act gives the reconstituted New Zealand Dairy Board, in addition to the powers conferred on it by the Dairy Produce Export Control Act, 1923, authority to regulate and control the production of dairy produce in New Zealand and the handling, marketing, transport, and distribution of dairy produce intended for consumption in New Zealand. Expenditure is authorized out of Public Works Fund of moneys required for rehabilitation of the dairy industry. Butter and Cheese Prices. The prices ruling for the season’s butter and cheese have again been most unsatisfactory to producers. In the 1929-30 season the average top price in London for New Zealand butter was 157/3 per cwt., and for cheese 88/3. The average prices so far for the season just closed are much the same as those for the 1933-34 season being approximately 80/- per cwt. for butter, and 48/- per cwt. for cheese. Production this season is lower by probably 20,000 tons. In the first three months of this year, owing to a temporary shortage in the domestic supplies, some 3473 tons of New Zealand butter were disposed of in America, as well as 18,000 casks of Continental butter. Shipments were made from both London and New Zealand and gave some relief to an overloaded market. During this period prices appreciated by about 10/- per cwt., but as soon as buying on American account ceased, prices receded to their former level. 'Die exports of butter and cheese for the past two years were as follows:— Butter.

Frozen Meat The killings for export of beef, mutton and lamb for the year ended March 31, 1935, with the figures for the previous year are as follows: — 1934/35 1933/34 Quarters of Beef 391,232 362,366 Carcases of Mutton 2,318,930 1,695,007 Carcases of Lamb 9,398,659 8,406,994 These figures show big increases which are due in a large measure to stock being sent to freezing works much earlier on account of the dry weather conditions experienced over the greater part of the ion during the summer. The weight to be shipped, however, will not be increased to the same extent as, owing to the shortage of feed, all classes of stock are giving a lighter average this year. Later returns to hand indicate that the remainder of the killing season will not produce the same quantity as last year. The early milk lambs'from the Dominion were sold at Smithfield at. a fraction over 8d per lb. and the price had gradually declined to 61 d per lb. at March 31, with no prospect, of an early improvement owing to large stocks in store and afloat from all sources. Mutton prices have declined a like amount over the same period. There were 28,649,038 sheep of all descriptions in the Dominion on April 30, 1934, which is an increase of 893,072 on the previous year’s figures. The export figures for the two years ended March 31 are:— Quantity.

Particular care is taken with regard to the quality exported, and there is good reason to hope for much further extension of this industry. WooL The greatly improved return for the 1933-34 wool clip led to the hope that the improvement in prices would continue. Early last year, however, the ban on imports of wool imposed by the German Government caused great uncertainty and lack of confidence in the whole trade, and values thereafter generally declined. Towards the end of the year some support was given to the market by the German section of the trade, but prices remained on a very low level. It was in very unsettled circumstances that this season’s Dominion wool sales opened. It was realized that the value of the current wool clip would be greatly reduced. Prices remained steady for the most part, but, towards the end of the season, there was a wider demand and a ' fairly substantial improvement in prices was recorded. Germany, one of the largest Continental consumers, has found a substitute which, mixed with wool, serves for clothing. Taking account of the impoverished state of most European peoples, any substantial advance in wool does not seem probable in the ordinary course of events. The total number of bales sold at the local sales for the 1934-35 season was 471,512, realizing a total of £4,401,010, and representing an average price per bale of £9 6/8 and 6.498 d per lb. The average value per bale and per pound of the wool sold in the Dominion sales for the last four seasons was as under:— . .. \.. ...

Year ended March 31. Quantity Cwts. Value £(N.Z.) 1934 2,740,973 11,691,541 1935 2,701,320 Cheese. 10,928,353 1934 1,964,535 4,683,480 1935 1,937,228 4,645,863

1934. 1935. cwt. cwt. Beef (frozen incl. chilled) 815,148 849,176 Lamb (frozen) 2,625,820 2,813,728 Mutton (frozen) 957,665 999,575 Value. 1934 1935. £(N.Z.) £(N.Z.) Beef (frozen incl. chilled) 811,855 922.404 Lamb (frozen) 6,733,112 8,866,139 Mutton (frozen) 1,351,087 1,828,011 The production of pork for export, which is important to dairyfarmers, has been substantially increased during the year, the figures for the years ended March 31, 1934 and 1935, being:— Quantity. Value. Cwt. £(N.Z.) 1934 377,863 869,478 1935 450,755 1,207,090

Season. Per Bale. Per Pound. ■ £ s d d. 1931-32 7 10 9 5.27 1932-33 7 10 6 5.18 . 1933-34 16 3 3 11.12 1934-35 9 6 8 6.498