TRADE OF THE YEAR

Dominion, Volume 18, Issue 182, 4 May 1925, Page 9

TRADE OF THE YEAR

EXPORTS INCREASE BY SIX AND A HALF MILLIONS CHAMBER OF COMMERCE REPORT IMPORTS GAINING AGAIN .In the course of the report to bo submitted to the annual meeting of the Wellington Chamber of Commerce on Wednesday, the following reference is made to the trade of last year:— "Trading conditions have continued satisfactory through 1924 as regards our imports and exports. • .Exports for the year' exhibit a splendid increase of £6,569,472, and are. practically up to the level attained in 1919, when the total was swelled by the 4 shipment of old accumulations! of stocks. Imports have increased by £5,163,215, and are only exceeded by the record year of 1920, the disastrous effects of which is still well remembered. Importation is in keeping with the demands resultant from the development of the country, but nevertheless imports require to be carefully watched to prevent any recurrence of excessive importation. The excess of exports over imports for the last year was £3,982,149, and although this does not provide sufficient to meet outside obligations, it is a very good one, since many items in the nature of long-term investments in our Dominion would be included in imports. The rate of bank exchanges is more favourable to importers than to exporters, and this naturally tends to encourage the purchase of goods from abroad. However, in view of Government and other -borrow’ing in London, the excess of exports is very satisfactory, and should be sufficient for present requirements. One must not overlook the fact that the prices of sour exports have been very satisfactory, particularly since there have been increases in volume as well as in value, and this latter is very marked in the case of wool. This in itself is not without its element of danger, for though production - is increasing, there is a greater increase in tne values than in the quantities, and any serious drop in th’e prices of our products in the markets of tho world would leave very llilfh margin on our trade. "The following table gives our exports and imports omitting specie, for the past few calendar years, with the balance of trade for each year:—

The lesson taught by the excessive importations in 1920 will be-remembered for some time, arid th® above figures shows that the total excess of exports for the last four years is only £1,393, <6< more than the excess of imports in that one year. Exports Analysed. "The following is a comparison of the main items of export for the past two years, though, as stated, the earliest year does not give the true measure of production, especially as regards wool and meat, owing to shipments produced in previous seasons being included:— 1924. 1923.

Dairy Products Lead. "The premier position is /till' l’?l£ bv daily produce (with exports of milk and eaisein added the total export is £19.299.838). and this position must be I most giatifying to all connected with i ‘hat industry. The amount of woo I shipped is not more than a normal I vear’s- clip, and the value shown un ! exceedingly well with 1923, being 40 i per cent, more for 5 per cent, less I ouantitv. Butter has. an increase of 11 1 per cent, ann cheese of 13 pet cent, in quantity, but tho increases in vain, are: Butter, 9 ner cent.; and cheese 2 per cent. - With frozen meat the increase is 6 per cent, in weight and 5J nor cent, in ,value. . . The quantities of principal exports, for the above periods are shown m the f ° U - W GoU able: ~ 1924. 1923. Wool (lbs.) 206.244.460 217.5G6.091 Prozen meat (cwt.) 3,175.841 2,992.085' Tallow (tons) 23.958 25.240 Butter (cwt.) i’w’lgo Cheese (cwt.) Kauri gum (tons) 5.261 6.598 Hemp (tons) 12,962 10,612 "The calendar year is not the true export season, as it includes part of two seasons. This applies especially io wool and dairy produce. In the case of wool, not -more than 15 per cent, of the vear’s shipment would be current season's sharing in the appreciated values that ruled in November and December. Since then the price nf wool has eased to a more stable figure, and with the strong statistical position the ruling values should reinain fairly constant for some little time to come Importation Gaining Again. “The excessive importation of 1920 and the first half of 1921 was followed by a period of decided curtailment of im'ports. but as stocks were gradually liquidated’ importation started to increase attain* and wa« on a heavy scale during the latter half of 1924. This increase is a matter which requires careful t watching, as importing is now on a higher scale than at any time except the 1920-21 period. Imports (excluding specie) for the past three years were:— 1924, £48.527,070; 1923. £43,363,855; 1922,. £34,826.074. The increase of £5,163,215 over the previous year's total is a substantial one. A Wonderful Season. "The dairy produce season has been«ta' wonderful one for production, feed has been plentiful, and cows maintained exceptionally good condition right through the year, and the steady supply of but-ter-fat was uninterrupted.. The North Island easily maintain?*! its position of producing fully 75 per cent, of the Doniinicin's dairy produce. With such enormous proportions as this great industry has assumed in recent years, the question of market is one that has a most important bearing on the results of the dairy farmers’ efforts. "General'y speaking, the average mar. ket price for both butter and cheese during the year, must be considered as exce-dingly satisfactory. The first shipments of butter this year realised IBfls. pe- cwt. ori the Tendon iniwket. There was a temporary fall in Alarch to 1605., but after that the - market ouickly -recovered. until at tho end of the year tl’c price on the London market was 2945. per cwt. The producers of- butter. generally speaking, expressed satisfaction at tho results of their year’s operations, and tho returns thev received from their different co-operative concerns for butter-fat were considered quite satisfactory. "Cheese onened up with the shipments leaving early in January at an average of °0«. per cwt. There was n gradually falling market until Alarch, when nrices- went down to 82s. per cwt., but the market after that steadied right through to the end of 4924. and values were steadv and satisfactory to • the cheese producers. At the close, of the vear cheese prices wore steady in London at an average of 955. per cwt. Throughout the year, particularly in

butter, a fair quantity’was sold on the basis of straight-out f.o.b. purchase by buyers, but it was not infrequent that the market had fallen by the time this butter reached London, so .that these f.o.b. se'lers were better off than consigning producers This was particularly the case in January, when many - factories sold large quantities of butter on the basis of Is. 7d. per lb., and when this butter arrived in London' the market was no better than Is. 4d. per lb.

Woof, "At the time of writing the wool-sell ing season has not ended, but a short review of the season can be made. The Dominion went through a good winter, nnd there was plenty of feed for the sheep, and the flocks came out well. The wool generally, for the whole if the Dominion,, was. well grown and in nice condition. The opening sale was held on November 17, in Wellington, and a catalogue of 7000 bales was presented to a full bench of buyers. The offering was a small one, owin'? to broken weather. Great interest was exhibited in, the sale, not only in the Dominion, but in the United Kingdom, tho Continent, and in America,- and it is safe to say that everyone got a great surprise at the results. Overseas papers referred to the sale as a sensational one, and, unfortunately, this description was too , true. There being only a small offering, and buyers being eager to obtain some of the 'new season's wool, and apparently having authority to buy without limits,- the whole of the offering was taken at prices that fairly astonished everybody. "The previous sale held in Wellington was in March, 1924, and provided the peak for that season. The prices at the November eale showed an advance from '4d. up to 6d. and 7d. per lb. on March. An astonishing feature was that these, prices continued at the following sales at Napier, Wanganui, and Christchurch) In December they began to ease away, and December showed a fall’ all round of Id. to 21d. on November. In January the prices were still lower, hut only 4o the extent of Id. to llcl. in crossbreds of 44’s quality and upwards. The lower grades, 44’s and downwards, appreciated Jd. to Id. February prices were still Irwer than January. .Merinos depreciated Cd. to Sd., halfbreds 3-Id. to 5d., and crossbreds 2jd. up to 4d. At the time of writing it is too early to say how March prices will gp, but the net result of the various movements -is (o bring us back to March, 1921. Those prices at the time were considered quite satisfactory, and haB nothing better been going from November to January no one would have been disappointed. Various accounts have been given as to the reason for tho fail. There is no doubt that finance played an important part in eompe’ling buyers to be cautious. When wool was costing £35 to £49 per bale, as against £25 last year, buyers very soon found that laying in stocks was a costly matter, and a halt was quickly accentuated. Alanufacturers were finding a difficulty in moving off cloth at the higher prices necessitated by the advance in the raw 'material. Next, the yarn-makers were finding a difficu’ty in selling their yarn, top-makers in soiling their tops, and so it came back to the producer having a trouble to find buvers for h>s raw material. Statistics all point to the fact that wool prices should be high, but there ‘is apparently some element .stronger than statistics, and that is ■the power of the consumer to buy. So wool j.s back to last year’s level. The average price of North Island crossbred, taking Wellington centre ae a guide, would show in March, 1924, 17Jd. In November this season the price had risen to 23Jd. December had fallen to 23d., January to 21Jd.. and February to 17|d. The total fall from November is approximately 6d. per lb. all over, or the equivalent of £lO per bale. "The quantity of wood offered at the sales in Wellington during the season will be 111,339 bales. Wollingtoh is by far the largest wool-selling centre in the Dominion, and, in the words of the Bradford correspondent of the ‘Boston Transcript,’ ‘is the premier wop’.-selling centre of (he Dominion.’ The total offering in the Dominion at the Novem-ber-April sa'es was 507,101 bales

Frozen Meat. “The market for frozen, meat is of su<h importance to New Zealand that every new movement is watched, with the keenest interest both by the business and the farming community. .At the conunenceent of the year prices opened 'on a very high level and gradually declined until consumption was sufficiently stimulated to absorb the excess supplies. Tn the case of lamb this occurred early in April and front ■then onward a steady demand absorbed supplies aS they came forward, with the result that at the close of the rear the old season’s stocks were practically absorbed Mutton did not respond quite so quickly as lamb but supplies from all sources were less than the previous year, with the result that the month of December saw stocks almost exhausted, and very high prices being quoted. A marked improvement has also taken place in the market for beef. . With the reduced output from South America and the demand, .from Europe for good second-grade beef,' the prospects are brighter than they have , been for'some considerable time.”

Exports. 'Imports. Year -C £ 1924 ... 52,509,219 48,527,070 1923 45.939,74-7 43,363,855 1923 4-2,725,949 34,826,074 1921 ... 44,828,460 42,744,122 1920 ... 46,405,366 61,553,853 1919 53,826,704 30,308,908

.£ £ 15.267.BR410.904.658 Sheepskins ...... Frozen meat 1... 1,513.477 9,506.249 1,121.695 9,012,720 Butter and cheese 18,664.965 17,559,597 799.230 785,668 Gold, Kauri grum 551.788 443.576 388,324 698,582 * 596.222 ' 284.897 472,120 473,752 N.Z. pro4,313,731 3,931,097 Be-exnorts and 595,231 specie • • 691,883 Total 52,612,707 45,967,119