WOOL AND MEAT

Gisborne Herald, Volume LXVI, Issue 20083, 1 November 1939, Page 6

WOOL AND MEAT

£6.000000 MORF SEASON’S FORECAST IMPERIAL PURCHASES BENEFIT TO DOMINION (Special to the Herald.) WELLINGTON, this day. The Dominion’s assured and unlimited market in the United Kingdom for its principal exported products during the current season should make a substantial improvement in the overseas funds position. Several prominent commercial men interested in one or other of these exported products were interviewed with the object of gaining their view of the general economic result of the negotiations so far concluded with the British Government. They expressed the opinion that the prices which will be obtained for meat and wool alone should show an improvement, compared with last season, of between £5.000,000- and £6,000,000, New Zealand currency Tiie Wool Situation

Last season’s exports of wool. 900,585 bales, represented a value of £12,899,000. Lower prices ruled compared with the 1937-38 season, but the larger clip meant an increase in gross realisations of £573,473. Estimates based on the commandeer prices to rule during the coming season place the imoroved realisations at between £3,500,000 and £4.000,000. There is, however, one important undecided factor which is still the subject of negotiations between the New Zealand and United Kingdom Governments. It has not yet been determined whether the basic price of 12Jd per lb. announced by the Minister of Marketing is the net or the gross price.

If it is the gross price, the producer will have to take out of it all the charges up to the point of delivery at the ship’s* side. These include transport, and the brokers’ charges which have to cover handling in store, displaying for appraisement cataloguing, and acting for the owner if the price assessed is considered inadequate, in which case there is provision for an appeal. The appraisement charges also have to be met.

Altogether, these costs are estimated at approximately 17s 6d per bale. This is an important point, and its settlement in favour of the wool producer would mean an improvement in his receipts exceeding £700,000. Resale by the United Kingdom to other countries of any surplus supplies should produce a profit, in which New Zealand is interested to the extent of 50 per cent.

Appraisement of prices is a highly skilled method which experience of commandeers has developed into scientific exactitude. Every factor in the quality of the wool is brought to account, the main points being . the count, the grade, and the yield. Tables are prepared showing the various allowance or deductions to be made/ There were 800 grades in the last New Zealand commandeer, and about 1250 will be recognised in the current appraisements. Prices For Meat An estimate of the improved returns from meat this season suggests that the total realisations will be in excess of those of last year by at least £2,000,000. This is based, not only on some improvements In prices, but the fact that the output is not restricted by quotas. A much greater weight of meat will be exported from New Zealand, at higher prices. There will be a tendency on the part of farmers to hold their stock to get heavier weights. Prices for representative classes of meat already have been published, so that there is no risk of a discount being suffered owing to heavier weights. Until the two Governments come to a final arrangement regarding the disposal of by-products, there must be some uncertainty over this season’s financial results, but allowing a safe margin on Jthis account, it appears that the farmer will be obtaining the following prices:—4slb. wether, 21s 3d; 521 b. wether, 21s 6d; 601 b. wether, 235; GBlb. wether, 24s Cd. Lamb prices should range as follows;—32lb., 22s 6d; 381 b., 25s 9d; 451 b , 295.

No doubt the British Government will take the slipe wool, but in a free market its price would be Increased. Pelts would certainly be high in value this season, and a large quantity would be taken by the United States, which is also the principal market for casings

Last season there was a disinclination by farmers to sell fat ewes ai low prices, but this season the improved returns will encourage a cleaning up of the flocks to the scvantage of' the Dominion. While old ewes could be bought for 6s to 8s last year, they are worth to-day 15s foi a 501 b. weight and 16s 9d for the 081 b. Breeders should benefit from improved prices possible for their suiplus stock.