WELLINGTON NEWS.

Hokitika Guardian, 22 October 1925, Page 4

WELLINGTON NEWS.

DAIRY PRODUCE -MARKET

(Special to “ Guardi.

WELLINGTON, October 10. I)«mg to several steamers Latino -,.ii!eil tor Lomlon with cargoes of dairy pioducc irom New Zealand and Australia, the London Initter market lias I’oconu* irregular, prices show a drop ot [,,ieu or lour shillings per cwt.. tuitl one message stales that there are no buyers. There is of course nothing extraordinary or alarming m this. Prices soared because supplies were held up at the sources of production, but now that supplies are going forward there is a natural disposition to go easy and see how the increase in supplies will ailed the position. Prices must fall as supplies alloat and nearing their destination increase. I'or the next six months or more the London market will be very largely dependent upon the supplies of New Zealand and Australia, helped by whatever is exported from the Argentine Republic. The latest statistics show that in the seven months to duly til last the imports of butter into the I nited Kingdom from New Zealand amounted to 1.071, Issewt as compared with 798,851cwt in the corresponding term ot last voar an increase ol 2/ o,Golcwt and from Australia 898,570 cwt against !liJ.'JliSew 1. an increase of 49t>.8()2ewt, that is the Australian supply more th-iii doubled. In the seven months New Zealand and Australia supplied 1.978.025 c-wt out'of a total of 8,857,599cwt, or over 51 per cent. It would sea reel v he right to assume that because the ships have resumed sailing that things are normal; the collapse of the strike has enabled the hanks to lift, the embargo on buttor-lnt. pay-out which had been restricted to Is .id a lh. hut they may have to re-imposo this restriction later, at all events it. i.s significant, that they have intimated that they would consider the position before the November payment. This reservation seems necessary because ot the delay in shipments, which will necessitate the banks standing out of their money for a longer period, this factor may also play a part in loreing solos and thus bringing down the prices. ni.'v'c iicviwee

I'UOZKN MEAT iiI'SIXES*. Tlie balance sheets of Ireev'.iiig companies are now being issued and with few exceptions they are not very encouraging. Some have made substantial losses, others have made small profits. and only a few have earned enough to pay small dividends on capital. One wonders if there is ever going to he an improvement in the position. The basic trouble is the oversupply of freezing plants, which leads to cut-throat competition causing the weaker and smaller companies imineiisc losses. Some oi the Earmers* Co-operative meat companies were not intended to act as buying concerns, confining themselves to freezing on owners’ accounts. These concerns sutler from the keen competition ol the Imying companies, lor the farmers are never able to resist the cash oiler.* which they prefer to handling llieit own flock and waiting for returns. Unless there is a speedy improvement some of the freezing concerns will he forced to close down. The new season is likely to apply a severe test; lie cause the fall in wool will be relleeled in the prices of mutton and lamb, and innrers will more readily fail in the offers of the Imying concerns. Shares of freezing companies, which ai one time were regarded with favour by investors arc now entirely neglected, tic- only shares to meet with any demand being Gears. The Wellington Meat Export Coy recently made a call of 5s ter share on (die cotil rihntiiig shares, making the shares .ft! 17s lid paid up. and (lie best offer for these shares is os and actual .sales were made

al that finuro. t ItC'IT lIINfi SAI.KS. Crilti-linit; sales a I ( lirisK-hun h ami V\ ellinnlon herald the column woo sales. At the Welliunl'iM sales ahoii! I |(K) hales were nli'ored anil soli I tv mnrkably well, the attendance n! Imyel > heme exeellem anil ennijiet iliol/ Keen. There was also a coed sal,. a l ('I i ri-st <l l i i rt-ii where prices showed at: advance. Tile erui'liinus ale mostly used lor Ida u led nianiit'aeuirc. and one can understand the demand. Tin lif.-d sale of the new season is scheduled for November lit and will probably he held as lived, hut the roster is very rerluin to lie altered if the huyer" •land In their del ■ • rniina t ion not [•> at Lend eveiiiiio sale . The woolbrokers have heel! tryilin I'o brill;:; about this reform lor many \ea is, and will do their inmost to pin tin- haver, down to day sales only. 'There are too many •elinm: centres -1 hat i- admii led -- hut it is diUieult to see liow that- can lie remedied.