PRICE OF HIDES

Dominion, Volume 9, Issue 2709, 2 March 1916, Page 8

PRICE OF HIDES

HOW THE FARMER LOSES

AN INTERESTING REPORT

A number of complaints have been received by tho Government about the action taken by certain meat exporters when the embargo on tho export ot hides was imposod. These dealers reduced the price paid to producers for all beef in consequence of the embargo, although some classes of hides were not included in the embargo. The I'rinie Minister recently asked Mr. C. J. .Reakes, head of the Stock Division of tho Agricultural Department, to furnish him with a report on the subject, and Mr. Reakes has reported as follows:— "The Order-in-Couuci! was gazetted on February 3. At the Wellington hide sales held next day, February 4, there was a slight rise in values of all classes of heavy hides, as compared with the previous sales on December 17. The lighter class of hides remained practically unchanged in value. At those sales heavy ox hides brought from 10 l-Bd. to lljd., medium ox hides '-up to lUd., heavy cow hides 8 5-Bd. to 9d., medium cow hides, Bfd. to 9 o-Bd. Thus tho prohibition of export, though it had just come into force, did not then pull down values, which, instead, increased in spite of it. , "At the Now Zealand Loan and Mercantile Co.'s sale in Auckland on February 15, in spite of the fact that the embargo had been in force for twelvo days, good prices were obtained, as is shown by the following quotation from the company's report of the sale:— " 'We submitted and sold average catalogues of hides, skins, and tallow on Tuesday last, competition being keen for all lines offering. Wo report as follows:—Hides: Market brisk. Wo quote: Ox, extra stout, 10 7-Bd. to llid.; stout, -IOJd. to 10|d.; medium, 9 o-Bd. to 9 7-Bd.; light, 9jd. to 9Jd.; cows', lest lines: to 93d.; good, 83d. to 9Jd.; inferior, Bd. to B\d.: kips, Bid. to 83d.' "Tho next Wellington hide sales take place on the 3rd instant, and these will show tho present position of the market. Market conditions up to the present have not warranted any reduction worth consideration in the values of fat cattle on the hoof, and there is certainly no justification whatever for buyers offering 2s. per 1001b. less for fat cattle on account of the embargo on hides. Even in the extreme case of a possible, though unlikely, l'all in values to the extent of ljd. per lb., the consequent reduction in value of a 7001b. bullock, on the hoof, would be only equal to Is. per 1001b. Further, the Government took ftps to siiiecuard tl e interests of producers and others by lixng the reaching of a minimum market value of lOd. per lb. for ox, aiid 9d. per lb. for cow hides over 4'slb. m wnght, as a guide to the Hon. the Minister in exercising' his power to grant permits for export, and, in "raining xh'.vc to readjust the market by regulating supply and demand. "Reports are current, but'l am not at present clear as to what truth, if any, there is in tliem, that certain dealers in country districts are staling that these minimum prices if J.Pd. and 9(1. are maximum prices fixed by tl.e Government, and are buying hides oil this basis very much to their own profit, and to tho corresponding loss to the seller. 1 '