N.Z. TEA STOCKS

Gisborne Herald, Volume LXVI, Issue 20095, 15 November 1939, Page 11

N.Z. TEA STOCKS

SHORTAGE POSSIBLE |

OVERSEA COST RISING

RETAIL SCALE ADVANCES

The announcement by tea-packing j companies handling two well-known lines that wholesale prices are to be | advanced by 7A cl per lb, in the one j case, and 6d per lb in the other, is; regarded by merchants and retailers j in Gisborne as a straw indicating j clearly the direction of the wind. They ’ expect to see a general rise in tea j prices almost immediately, though; advice from other packers is being j awaited.

Merchants and retailers alike have been kept in short supply by the purveyors of bulk teas in New Zealand, in anticipation of the arrival of more expensive consignments from abroad, the intention apparently being to mix the remaining portion of old shipments with the new importations and thus break down the necessary advance in price. There is no doubt that bulk tea will cost the importers more. One Gisborne, firm which has imported bulk supplies from time to time was advised recently that it would have to meet an advance of Gjd per lb on the price quoted three months ago, just before the outbreak of war. The position for lea-drinkers may be aggravated by a definite shortage of supplies. Applications for import licenses have been granted by the Customs Department after consideration of the amounts imported last year, and sterling is being made available in approximately the same amounts as before. A 15 per cent rise in the overseas cost of tea means that, with the same money available for purchasing, the volume purchased will be proportionately less. For this reason, merchants look ahead to the time when supplies will fall below normal consumption.