WELLINGTON NOTES.

Hokitika Guardian, 20 March 1925, Page 4

WELLINGTON NOTES.

the kangaroo brand.

(Special to “Guardi*,n”.)

WELLINGTON, .March 1?

During Ihe past week Australian butter —the Kangaroo Brand—has been selling at about 2s per ewt above that of N.Z. sailed butter. At the week-end, affording to the High Commissioner’s cable message N.Z. finest salted butter was quoted at from 174 s 180 s and Australian butter at from 170 sto IQOs.l Q Os. Australian was thus a shade better than N.Z. and there appears to be conflicting views as to the reason for this. Usually, in fact up to the present, Australian butter lias invariably sold at a few shillings per ewt below N.Z. Tho Australian view-

point is that the position is due mainly to the institution of the Kangaroo brand which is the brand placed on the highest quality of butter placed on the United Kingdom market from the Commonwealth. The importers ol Australian butler rather emphasise the Commonwealth view for they contend that the disparity in prices between the two butters was not-justified, especially in view of the excellent quality of Australian butter this season. 'I he New Zealand view is that the high price of the Australian product is due

to a temporary shortage, having been caused by the Continental demand clearing the bulk ol the Australian supplies. Probably both 'dews are to some extent correct, and the high mice of Australian hotter is due to the improvement in quality and the temporary shortage of supplies. Discussing this matter with one interested in the trade the latter stated that N.Z. cannot claim any monopoly of quality. Australia has been working up to its quality and the Australian Dairy Council, which is not a control body as is our Control Board, did a wise thing in placing the highest quality butter under a national brand, the Kangaroo brand. The N.Z. Dairy Control Board .proposes establishing a special brand for super quality and this was regarded as a good move. The competition in the future, as in the past, will centre round quality, and N.Z. butter cannot now alford to Inin any risks. Tile Argentine Government is determined to improve the quality of tho butter produced in the Republic, and -Mr Petersen, who left

N.Z. to take charge of the Argentine Dairy Department, may be trusted to do bis utmost to improve the quality. The Argentine promises to be a formidable competitor for the butter trade of Britain. POSITION OK WOOL.

The wool situation is full ot interest nd various opinions arc held as to

the present position anil the outlook for the immediate futur.'. It was recently suggested that the limitation of c: lie rings at the earlier sales was a mistake, and that growers should have been allowed in sell all the wool they bad while nriees were high. This ar-

gument it is pointed • out cannot lie sustained. Had the market been swamped with wool, values would have crashed, for the buyers would have been unable to lift any heavy weight of wool, and in the c ase the market would have been at their mercy. Bv limitfng the catalogue the drop in values lias been gradual. It is claimed that no act of the Wool Committee or of any other body or organisation could have arrested the descent of prices. November values were inflated. They were not justified by the conditions, and a descent from tiiaL high level was imperative. But no one anticipates a slump in values, because the statistical position of wool is a very strong one. According to one authority here, two factors have operated to bring clown prices, one being the inability of the consumers to pay the high prices demanded for the finished goods, the other being the absence nf American buying. The United States woollen trad' is now the largest ennsmner of wind, lining to the great increase in pepulaliun. .I list, v, liy the Anierienns did not pnrc-ha.se more freely it is difficult to say, but the lac t remains that the stocks of wool in America are very light, and there must shortly be active buying oil behalf ol that country. When America does start, buying she will give stability to values, I lie strength mid support of the wool trade lies in the fac t that America must be

;i -leads- purchaser ol toreign wool ill increasing <? 11:1 nLiLios. In tlio last resort it is the consumer of the finished product who fixes the price ul the raw material. It has been continually asserted th'.it the manufacturers were unable to sell their goods at prices commensurate with those paid tor tinraw material, and this has helped to ease the market. There are indications that values to-day have about reached their lowest point, that is to say. (hat there is chance of values stabilising at about the current l.ondon 1 -ices. The 'world wants more wool than is being produced to-day, and the use of substitutes may help out, a little hut it must he remembered t.liaL the mass of the consumers cannot pay an v fancy prices. There will ho always a good demand for wool when prices are reasonable .as they appear to he just now.