BENEFIT FROM EXCHANGE

Taranaki Daily News, 16 January 1931, Page 7

BENEFIT FROM EXCHANGE

EFFECT OF LATEST INCREASE PRIMARY PRODUCERS’ POSITION. (By Wire—Special to News.) Auckland, Last Night, The extent of the effect of the increase of . £2 10s per cent, in New Zealand rates of exchange on London can be gauged by the fact that there is . at present butter valued at approximately. £1,000,000 stored in the Auckland freezing works waiting shipment. On this alone the premium through the ne— high rate of exchange will amount to a total of approximately £60,000. • In addition to this the Auckland stores are holding just under £250,000 worth ol cheese. Saturday’s Auckland wool sale, which is expected to realise £lOO,OOO, should benefit by the slightly firmer tone, in the bidding. From the point of view of Dominion producers there is natural satisfaction at the opportunity to reap financial benefit by the increase in the premium on exchange. Dairy eompan- yie; with large stocks now on the point of beina- consigned to the British markets are given positive encouragement at a time” when assistance is urgently needed, although the higher rates are likely to hold up f.o.b. sales because the seller in such cases does not get th benefit of the exchange position. Over a month ago the attention of producers was invited to the fact that from their viewpoint the bright spot in the existing position was the premium on exchange. It was estimated that if the rates then ruling continued the primary producer would benefit to the extent of £475,000 this season. Assessing butter’ at IOJd a lb. it w as estimated by a competent authority today that the total premium on exchange is worth 6s 3d a cwt, on but? ter. Expressed in another way and again basing the calculation on the supposition ?hlit the 6 per cent, rate would hold for the rest of the season, it was estimated that the premium would be £550,000 for butter on shipment to the end of the, season. :