DAIRY PRODUCE AND WOOL.

Press, Volume LXI, Issue 18413, 20 June 1925, Page 12

DAIRY PRODUCE AND WOOL.

BANK CHAIRMAN'S yiEWS.

■la.tlie course of Lis address at, the annual meeting of the Bank of !Ncw ZeaJand yesterday, tho chairm.an, Sir George Elliot, devoted some time to a surrey of the dairy produce and wool markets.

On .the question of dairy production, he said: — It is estimated that the average annual yield, of butter-fat per cow in N'ew Zealand to-day is 1701b, compared with an average of 3oOlb in Denmark and in somo parts of America. If it could be realised that for every increase of 101b of butter-fat per cow per annum in our dairy herds, an extra million pounds sterling would result to the dairymen, no one could fa.il to be impressed with the immense future that lies before the industry. Thero is no reason whatever why our average should not be brought up to 2501b. If this could be brought about, even though no increase- took placo in the number of our cows, tho value of our butter and cheeso exported would, at current prices, be raised' by £8,000,000 annually. It is claimed by tho Xcw Zealand Co-operative Herd Testing Association that this desideratum might he achieved in tho spaco of ten years with systematic herd testirrg. A short report recently issued shows the result of tests made in 1023-24. 31,003 cows wero tested with the following results: — 1.136 or 3.6 per cent, gave 3511b of butter-fat or over.

. 14,914 or 48.1 per cent- gave from 201 to 3501b of butter-fat.

G. 341 or 20.5 per ceni? gave from 161 to 2001b of butter-fat.'

8.612 or 27.81 per cent, gavo IGOlb and under.

It is claimed by some of thoso who have made a special study of the subiert that a now which-does not yield more than 2001b of butter-fat per annum is n"t pivihe a sufficient return for t.be capitnl thai it'represents and tho labour that is spent noon it.

Anplvinrr thijs criterion, 48.3 vp.t font, of powo■ tested vre™ -unnrofitshlo. Had n-rorarrerl evpn 2001b of butter-fat. thero would 'Wp K?cn.ati iw»nnp of £63 000 nr an n.vpra.?p- of £IOO «ach to tho' 69/)' owners' of the 31 HO3 rows mentioned.

| n ihesp, twtinff experiments'it w.'"' fnnnrl tint, a W cows K»v« from /VW trt <Wl> nf lvtW-fnfc ner nrvnnm. v-Wp n. number of ntW« wva WO tn .nf)olh. rvn the o+.W h»"'l tlifro -a-M-n TnanV +.liof, o>avo wV'IWlh or under. The- row .min'Tiir t W lo«*«st t«st wns DrndtlcinP' 3011> o-f I>Tift<"--,fct tkv .annum or an ovpi-niwi oF 1 irl in Tallin nf* milkine. Tf tW of Tvnttor-fptin Voiv 7loMs*nd'is to lv> increased in the npnr fiit.nrp-. two things are essential rrj'tWTVnminionV'rWv'forms: one is +lio -rirwcipooion of 'bulk, pnrl the other"is a rigorous testing of the herds. • '"•'■ "' .. .' ' , . .It seems- to he- inipossiblo to determine the value of ._ a cow from a butter-fat . point of view bv means other than scientific testing, and such tests givo surprising results. Cows that look remarkably well, have been proved unprofitable, while others that have been disparaged have been found to bo the best butterfat producers, in the herd. ■ This matter is eo important for tho .welfare of. tho Dominion that_ any money spent by .the Government in.tho importation of bulls of tho best type, 'and on,the encouragement of herd testing would be money well spent, and results would ensue that would have a far-reaching effect on tho finances of the country. . . Speaking of 'tlife rise of wool prices "in November last, •he said one can only hazard a guess, at the reasons that led up to' tho phenomenal rise that took place at ; the early sales. For some considerable time' Sir Arthur Goldfinch, the chairman of tho British-Aus-tralasian Wool Realisation Association, has maintained that the annual output of wool was wholly '.inadequate to supply the'" growing demand for woollen goods throughout the .world, and tho figures ho submits do'not seem to have been controverted. His statements no doubt affected prices, but there were other and weightier factors. One was the difficulty that was'' being experienced in transferring money from London to pay for purchase* both in Australia 'and''New .-Zealand, but more especially ■in Australia. In November and Dhv •cembcr 1 of last year the exchange difficulty iu Australia was ■ so acute _that grave doubts'were expressed as to the ability of-the Banks to finance the exports'. This difficulty was accentuat-' cd by an exceptionally heavy wool clip and rising prices. It is interesting to note in passing that, owing to a bounteous season, the average weight of wool'-per sheep'in Australia was BJlb, as .compared- with 7£lb the previous ■year.' "With these possible Australian ■oxchango difficulties in mind, _ buyers who had arranged for. credits in New Zealand became, more.-inclined to bid wool up to a price not warranted by tho .conditions of-trade ruling in Great Britain and on tho Continent of Europe. • In my opinion, however, the .chief reason for tho. phenomenal riso Khava been speaking of, is. to be fouud in an oxecssiyo. amount of speculation, no. doubt encouraged by. the continuous rising trend of prices during tho previous two years. -The result of this speculation has been disastrous to tho buyers; certainly New Zealand sheep farmers have gained, but buvers from overseas and- speculators in New Zealand havolost,"aud .such a state of affairs is far from desirable. Tho num'bor of sheep in New Zealand in 1914 was 24,590;400, against 23,-b 584,789 for 1924. Tho figures for 1925 are not yet available, but it is estimated there may be an increase on the 1924 numbers. The total wool shipped in'the 1913-1914 season was '560,887 bales, and for the nine months ended 'March 31st last 454,072 bales had been exported. Owing to the drop in prices during the latter end of the Roason, a percentage was held over at the sales, and is still in the brokers' stores. Ho added:

"Wbilo artificial silk is having somo effect-on the consumption of wool, it will probably in the futuro have a greater effect on fine cottons, and its continued use will, to some extent, tend to steady the market for both' wool and cotton. As- long, 'however, as the price of wool and woollen goods is maintained at a level fair to tho wool-grower, to tho manufacturer, and to tho public, neither artificial silk nor any other substitute so far discovered can take its place.

• -When-tho wool commandeer was arranged with- the British -Government during the war, ;thc price was consider-ed-excellent by tho great majority of sheep farmers, and at present, according to. the latest London advices, the market value of wool is approximating the commandeer prica. Any sheep farmer who has not paid an exorbitant price for his land should, on present wool values,, be able to do exceeding well.

RAILWAY FREIGHT CHARGES ON BENZINE. .The railway charges for the carriage of benzine and kerosene will be reduced on and after- Monday. . The Department's notification reads: "Except where otherwise specified, thtt rata on benzine, koroseue. and Klmilar minoral; eili; -in--any- qUßTititjy will bo Claw B, plus 25 per cent.'.'.

DAIRY PRODUCE.

MARKETING METHODS.

(P3ES3 iSSfKIATIOX TXLEGEAS.'.} "WELLINGTON, Juno 13. Messrs Motion and lorns, the members of the Dairy Produce Export Control Board, who have been selected to represent the Board in London, were entertained at. dinner. Mr Grounds, the chairman, emphasised the need for better marketing method.-. Mr Motion said he would do his best in the interests of the dairy produce industry. Some proposed reforms in marketing methods had beeu described as ••socialistic'' and "communistic," but lie asked would any section of business men liviuj; in the city consider it srood business to manufacture £18.000,W)0 to.£-'0,C00,000 worth of. produce, n.ud send it to market without some organisation at tho market end to protoot their interests. Business men who did this would-, be thought mad. The Hon. "\V. Nosworthy (Minister of Agriculture') said the Board's function was solely to consolidate tho industry. Ho had no dm'lt as to the future success of the Meat, Daily, and other Boards.

The Hon. A. D. McLeod (Minister of Lands) said that Parliament was rlosoly concerned in the success of the Dairv Board, whose powers affected 40 per cent, of the country's total exports. If success wero not achieved, Parliament would have to answer to tho country. 'Ho did not doubt the Board's ability to secure tho desired results, hut ho regretted the apathy shown hy sections of tho industry in matters affecting their own business. At tho recent election, over 2-3 per cent, did not "vote.

LUXURY IMPORTS.

WARNING AGAINST EXCESS

YsrzciiL to "the tress.")

DUNEDIN, Juno 10.

Ab the annual meeting of the Perpetual Trustees Executors and Agency Co. Sir Georgo Fen wick said: I hnd myself fullv in accord with the action of tho Chamber of Commerce m its recommendation to importers and traders-to exercise caution m respect to forward commitments, more particularly as regards imports, and especially indents for luxury goods. I -would also stress the necessity of placing as much, business as possible -with British manufacturers, recognising that wo have m Great Britain our ■ best customer for our main exports. It is certainly.nob comforting to find that having increased the value of our exports from £26,000,000 in 1014 to almost £55,000,000 in 1025 (mostly through enhanced prices and only partly through increased production), our trado balance will not suffice to cover our annual liability for overseas .interest. It is true that from time to time tho sum total of our yearly imports includes goods bought and paid for'out of loans raised in Great Britain, but I think this serves to .emphasise the ]K)int, namely that loans when required should more often bo raised within tho Dominion. Such a. course, if adopted whenever practicable, would servo the donblo purpose of tending 'to reduce oar imports and enable us to retain in the Dominion the interosb payable on such loans instead of sending it abroad.

The remedy -would appear .to be of a twofold-nature: firstly,'a reduction in; the volume of our imports, and, secondly, an all-round increase in our production and exportation.

AUSTRALIAN LAMB EXPORT.

Mr Leicester Matson furnishes tlio following from a reliable source: as regards, tbo prospect 3in Australia. In view of the report it would look .. as though, providing decent we'atherer conditions prevail, the , export of lambs horn Australia this year will be an enormous factor, . and ; ■while the prices aro at a high-water mark,. vendors of lambs should not bo frightened to make forward sales in reliable quarters on or about the basis which is now ruling:— "There aro wonderful prospects; here for an exceptionally good winter, and probably early spring, as wo have had the best rains known for years pretty 'well all over the pastoral and agricultural district of South Australia, Victoria, and New.South "Wales, and we will have, at any rate in Victoria and Iliverina, the- largest number on record of export lambs-. The writer has: just ..returned from two trips throughout the length and breadth of Iliverina and both owes and lambs everywhere aro in the best condition ho ever remembers seeing at this time of the year. The percentage'of lambs is quite phenomenal, even merinos in many instances, running from 90 to 100 per cent."

WRONGFUL RETAILING OF MEAT. To show what tho New Zealand -Meat Producers' Board is doing in iho direction of watching that the Dominion's meat is not being retailed under any other .name, the following extracts from n letter dated May Bth received from the Board's London manager -will bo of interest to tho trade and the public generally.: "I have been keeping before me the question of getting- a prosecution against amy retailer for selling Argentino or Australian meat ns New Zealand, but have found great difficulty in getting definite evidence -which w-ould enable mo to take action. -There have been, several cases brought to my notico which required' attention, and 1 have sent our inspector Mong to investigate, but thero was absolutely no evidence forthcoming which would justify me in, instituting a prosecution. "I may add (hat I shall not fail to take prompt measures to investigate any cases brought before me. and lay information against tho offender. ■ Although one hears many complaints of wrongful retailing of New Zealand meal, I am satisfied that there is not quito fo.-much of it done as is often thought.. During tho last eighteen months I have personally inspected mnny cases, but jio far I have not been able to produce the necessary evidence in a single case."

FEILDING STOCK SALE. (rEESS ASSOCIATION* TKLEGHAIi.) FEILDIXG, Juno 10. At Feilding clock sale fo-day, a, heavy yardiri!' of tat sheep wa3 offered to a imi&il attendance of buyers. Fat 'lambs wero not in demand, the offering apparently being too large for the limited competition and most cf tho pens wero Fat ewes and v.-ethers sold freely at up to late rate*. Breeding ewes wero in ?rocd demand and maintained tho figures lately ruling. Fat ewes mudo 26s 6d It> 35s 10d, fat wethers, 38s to 433; atoro cv.es, 27s 2d to 355; fat and forward ewes, 193 to 25s 2d; ewe hoggets, 2Gs 3d ; mixed bcx hoggets, ■ 26s 5d ; small, 10s 4(1; llomney owes, 37s 3d to 46s 6d. Best dairy cows, £lO r i3 6d; medium quclity, .'-'5 7s 6d to i' 7 15s; Jersey wcaher heifers {poor conditionl, £2 2s: fat f-nd forward three-year-old eleers, £1 2s Gd; and fat oovrSj £". i

DAIRY CONTROL BOARD

(rRES3 ASSOCIATION IF.LECBAII.) WELLINGTON", June 19. In the Press Association message giving the result of tho Dairy Board election Jt was inndvortcixtly stated that Mr Bryant, who was elected for the South Island, was in favour of modified control only. It is stated, on behalf of the Dairy Board, that this is au .error, as he is wholly in favour of tho Board's policy of r.bs>olutc control, for which.tho South Island votes wero 63D4 in favour and 27.03 against. All threo candidates elected favour, tho Board' a jolic^