WELLINGTON NEWS

Hokitika Guardian, 7 September 1926, Page 4

WELLINGTON NEWS

MARKETS AND PRODUCTS. (Special to " Guardian.”) WELLINGTON, September 3. The outlook lor the primary products of the Dominion is being discussed by business men generally, and it is wonderful tile variety of opinions that are held. There is a general concensus of opinion that wool will he a good asset. The fancy prices for the "1921-23 season will not he realised nor are they expected hy growers or brokers, but it is more than likely that the values ruling

at the (’losing .sales in .March la?t "ill he upheld, and it will surprise many shrewd observers if there is not a slight improvement on these prices. II merino wool rises a little more crossbreds must go tip. Another opinion in respect to wool is that, the marketing methods are the best that could he devised, and fortunately the sheeplarm-ers—i-lmt is those who really count in the industry—are 'utterly opposed to anv system of control. Most of the New Zealand clip is now sold- in tlit* Dominion and that is evidence that wuulgrowers are not anxious to .speculate in wool; some of them tried it in the season ol |!)2f-2o with disastrous results. Hy selling his flip locally the grower really has lull control over his clip. He can and does tix his reserve price, he can attend the sale and see how tlie market is going. II his wool has to he passed in because the reserve is not reached, he has still the right to have il offered at the next sale, and il it does not sell then he can ship it to London and market it there. He has thus two markets open to him. If he sells locally his cheque is in his hands a fortnight after the close of the sale. It would he difficult to find any better svstem of marketing than thi>. With respect to frozen meat some think that North Island lamb will open at about 22s per ’head, while others think that the price may be a shade less, but these are people who are very conservative if not a little pessimistic. In Australia fat lambs for export are quoted at old per lb, and as New Zealand lamb i.-, of higher quality we ea.ll reckon upon about 7.Ul per lb or a little more. There is, however, very little business done now in frozen meat on a c.i.f. basis, that appears to bare been checked by the regulation of shipments creating uncertainty as to delivery. The Meat Control Hoard has not ventured upon absolute control, but it inis by its political methods of conducting tile business created a situation that is practically impossible. An expert in the marketing side ol lrozen meat is decidedly of opinion that from fill per cent to 70 per cent of the frozen meal should he sold c.i.f. When this 'happens the buyer at the other end becomes immediately keenly interested in holding up the market, and the balance of 20 per cent which may he consigned is naturally favourably affected by the efforts of the c.i.f. buyers. Since this class of business has fallen off, the market has tended downwards, for it has not been the immediate con-

coni of anyone at the consuming oiul to hold up the market. Another point that is emphasised is that practically the whole of New Zealand’s frozen mutton and lamb passes through the hands of the so-called combines, that is Veste.vs, Bortluvieks, Swift. Armour and oth.ers with, numerous retail shops in Britain. It is the operations cf these 1 1 i'r ( oncerus in the tat stock -market that has made it so difficult tor the farmers freezing companies to carry on as freezing concerns only. However, the outlook for frozen meat is not very promising, but it is a fluctuating market. and a- continuous drop is as unlikely as a continuous rise. With respect to butter and cheese it is impossible Lo say what like ellect ot r mpulsory control i- going to be. .Butter ims declined Irom (is to 8s per cwt uuring the past few days which is rather surprising for this is when the muikei begins to take tin upward turn, as i.lie European supplies fall oft. Compulse; i'y control means a complete aim radical Change in the marketing methods. The f.o.b. buyer is wiped out. and all dairy produce must be exported. on consignment through the Board. Whether this will he an improvement on the system ot marketing that lias gradually developed with the experience of a quarter ol a century remains to he seen. One la.et stands out clear and that is that no one is now interested in holding up the market. nr trying to do so. except the Board's Loudon agency and that is an impotent body. It is a bold experiment. not in pure commerce, but in commerce, largely mixed with politics, and if there are losses they will be verv ideavy.