WELLINGTON NEWS

Hokitika Guardian, 6 January 1926, Page 4

WELLINGTON NEWS

THE FARMERS’ YEAR. (Special to “ Guardian.”) WELLINGTON, January 4. In reviewing tbc year just passed as to • lioiv the primary producers of the Dominion had fared, Dr C. J. Reakes, Director-General of Agriculture, summed up as follows: —“ After the tremendous upheaval caused by the war it was only to he expected that it would take some years to bring about i return to something like normal and stable trading conditions in farm products, and that during this period of readjustment unusual fluctuations of values would occur. There now seems good reason to hope that we are passbig out of this phase and that more stable conditions may be looked for. If they come about it will be good in every way, not the least of these advantages being that a stabilisation of land values on a reasonable and sound basis will lie more like.lv to be brought about. In any case, with the exercise of energy, prudence and economy, rural New Zealand will surely continue its progress.” In speaking of the dairy industry lie said that the official gradings for export were 70.216 tons of butter (an increase of 1d.6 per cent) and 69.00:5 tons of cheese (a decrease of 6.2 per cent). In terms of blitter-fat the amounts for butter and cheese combined represent a net increase of 6.8 per cent, compared with the preceding year. This established a now high-level of butter-fat production for the Dominion. Moreover the local market absorbs an increasing proportion •if the butter and cheese output each year. Including all milk products the dairy industry provided about one-third in value of the country’s exports for 1924-26. Cheese gave the higher return to the producers last season, but the butter branch also did very satisfactorily. The new season’s prospects were somewhat uncertain, owing largely to disorganisation of shipping. However, a large proportion of the output to the end of December had been sold forward at good prices. Herd testing showed a marked development, the number of cows under test last season, being close on 200,000. Betterment of the duality of the produce was being promoted by the provision of research laboratories. With the assistance of a Government subsidy a local laboratory had been established ill Taranaki during the year. The Department of Agriculture itself was building a central laboratory together with a small experimental factory at Wallacoville. Those should be ready in time for 'next season. Referring to pastoral matters. Dr Reakes said that tbc very satisfactory increase in tbc Dominion's sheep stocks was shown hy the annual returns compiled in April. The increase in sheep was over threequarters of a million, bringing the total to 24,647,996 head, each sheep district contributing to the upward movement, and the increase consisted chiefly of ewes. Dairy cows showed an increase, but there was a net decrease of some 60,000 in Llie total of cattle, the net number being 3,30:1.744. Pigs bad increased bv 26.000 to a total of 110,116. THE BETTER .MARKET.

There arc no signs that the downward tendency of the butter market has ended. It lias fallen from 220 s per cut at the Lime of the strike of British seamen to Uils with no chance cf its holding at that price, lor the quantity of Australian and New Zealand that will reach the British market in January is enormous and is ii > doubt a factor in depressing prices now and will have a. greater influence when the supplies are in store. To some extent there is no doubt that the butter trade is now getting the lull force of the effects of the strike and the consequent congestion of shipping, in a circular recently issued it is staled that apparently there are hidden accumulations of stocks in Loudon as the result of heavy buying at I lie time of the strike and the multiple shops which hold these cosily stocks are endeavouring to keep up the retail price. These shops may have bought heavily in anticipation of a shortage, but they Would never bold stocks. They would follow iho safe business maximum of culling the loss promptly. Nor can the retail price be held up for any length of lime, for competition would .soon adjust that. The more likely explanation for the drop in the price of butter is that the purchasing power is lacking, and this can lie seen in respect. to other commodities. In the past season the Germans by buying up considerable quantities of Danish butter and New Zealand butter also hoped to create a shortage. Tbc Germans

are not now in a position to make purchases for the economic conditions are •such that all the available credit will be required for the purchase of raw material for industries and foodstuffs must give way to that.. If the cause of the slump in butter can be safely attributed to lessened purchasing power on the part of the people then prices are likely to ;go much lower than they are now. Last season the price dropped to 168 s and the current quotation is 7s above that. Jt seems that the cheese market is also affected but for most of the cheese, factories this is of little moment as they accepted good offers when they were made and some of them are fortunate enough to have sold the entire output of the season.