PRODUCERS’ PROBLEMS

Dominion, Volume 14, Issue 205, 25 May 1921, Page 9

PRODUCERS’ PROBLEMS

OUTLOOK FOR WOOL AND MEAT ADDRESS TO FARMERS Referring at yesterday’s conference of the Wellington-Wairarapa Provincial Farmers' Union to wool and meat prospects, the president (Mr. W. J. Polson) stated that while the outlook was black enough there was a gleam of comfort in the fact that practically the whole of the Imperially-owned meat was now out of

the Dominion, that the control prices of our fresh meat had been removed, and that there was a steady and increasing demand for mutton and lamb in London at prices which at the old cost of freezing and delivery would have meant salvation to the producers. It was becoming increasingly evident that given a return to something approaching normal conditions tho future of New Zealand as a great mutton and lamb producing country was assured. “Tho outlook for wool is,” he continued, "in a different category, but we must not lose hope. The proposal submitted to the recent producers’ confer-

ence in Wellington to fix a minimum price according to grade was. I am satisfied, an attempt in the right direction, and may still, with the assistance of the British-Australian Wool Realisation Association, with whom we propose to co-

operate, provide us with some relief. I am less inclined than formerly to look for much help to any scheme for selling our wool to Germany, because it has become increasingly apparent that practically every wool-producing country is seeking for German trade, and it almost appears ae if qur late enemy would soon be in the position of picking and choosing amongst the world’s best wools on her own terms, to the disadvantage of

Great Britain and her Allies, a position none of us would care to contemplate with equanimity. It is probably unwise to prophesy, however. The settlement of the indemnity may bring about an entire change in the situation. t Pertinent Observations. “But I am still strongly pf opinion that now is not the time to reverse the policy of the past six months, and fling our wool on to a glutted and demoralised market, as has been suggested by some of our leading men. In support of this view there are circumstances which I wish to point out. In the first place we have no monopoly of crossbred wools: On

the contrary, we produce but a small proportion of the crossbred wool of the world. Secondly, the production of crossbred wools far exceeds the present means for manufacturing it into the world’s requirements. Thirdly, crossbred wool has reached such a low price that nothing can undersell it, and can consequently be no gamble to hold it. "If we study these considerations we are confirmed in this view because there is evidently an ample supply of the very low-priced wool, more in fact than the world can absorb until IKe low prices have further stimulated industry. Sir John Higgins has told us that there is enough wool in the world now to keep the whole of the woollen mills of the world, including late enemy countries, operating seven days a week for four years. Under such circumstances, to throw our wool on the market would not help the position, and would probably mean that tho bulk of it would pass into the hands of the speculator to be used to our disadvantage later* on. I am bound to say that this is not the view held by some who have studied tho position, and who are now urging that we should get rid of the wool in order to force it into production, but reduced costs of manufacture and not a disastrous sacrifice of wool seems to me the first essential in increasing production .by manufacture.”