WELLINGTON NEWS

Hokitika Guardian, 18 March 1927, Page 3

WELLINGTON NEWS

MARKETING METHODS. (Special to “ Guardian.”) WELLINGTON, March 10. Of all our important primary products wool alone has not been interfered with bv the politicians and Parliament. As everyone knows there has been some agitation for the control of wool on the lines of dairy produce and meat, but the woolgrowcrs, or tho majority of them and the members, of the Sheepbrceders’ Association have stoutly opposed any Government interference with wool, and there has been some opposition to the operations of the Wool Committee the members of which merely limit the quantity of wool to be offered at the January and February sales so as to spread the offerings and prevent congestion in tho two months named. And the members of the Wool Committee give their services without fee or reward. Notwithstanding that there is no control over wool by any board or other organisation the wool market to-day is the most stable and the most hopeful of all our markets. Wool has been allowed to take its course and find its own level. Tho growers have all along been urged to sell and they have followed the advice with the result that the wool market is to-day buoyant and complete confidence prevails. Wool prices have fallen and relative to butter the market price for wool is much nearer the pre/wnr level. But wool is selling and butter is not. There is confidence in the wool market and not in the butter market, and in view of the disastrous situations that lias arisen in respect to better as tho direct result of compulsory control, woolgrowcrs are unlikely to consent to any measure of control of wool. The London sales, tho second of the series, which opened last Tuesday, disclosed a very satisfactory position. Business lias been active in the semi-finished products of wool, and top-makers and spinners report expansion in business. The Continental hav-

ers are operating with freedom, and it

is obvious tlint the outlook on flic Continent is more hopeful now than it has been for some time past. Crossbred wool is still very cheap as compared with the finer wools, but it is Agoing into consumption, and the prices offered are reasonable and arc profitable to the growers. DAIRY CONTROL HOARD.

The Dairy Board has found it necessary to greatly modify its policy. Price-fixing i s to be abandoned, and the accumulated stocks are to be pushed for sale. The average sales by the Hoard since November 4, when the first consignment of New:. Zealand control’ed butter was placed on the market has been about 30.000 boxes per week lip to the present, and now the sales are to be increased to 90,000 boxes weekly, and to treble the sales mere must be a very appreciable cut in prices, which will mean very heavy losses to the dairy farmers. The object of forcing sales of both butter and cheese is to clear the produce before the products of the Northern Hemisphere are placed on the market. The question is whether it is not advisable to clear stocks even at some loss rather than have a repetition of the experiences of the 1925-26 season, when about 600,000 boxes of butter were carried over. It is very unfortunate that tbe position should be so bad this year, but to some extent the Dairy Board must accept the blame. However,''' whoever is to blame is scarcely of interest, but tbe fact remains that the purchasing power of the dairy farmers will be greatly curtailed this year, and this will be felt by tbe whole community, especially the people of the North Island. It is a question whether the Dairy Board lias taken all steps necessary for re-estab-lishing confidence. The Board in effect challenged the whole body of distributors of New Zealand dairy produce, forcing'the distributors to combine and fight the Board, which lias been done, and tbe Board lias been defeated. The Board has abandoned the policy of fixing prices beyond the economic level, but will that in itself be sufficient to restore confidence. So long as it is in tbe power of the Board to exercise absolute control there will be danger of it being put into operation at some future time. It may be desirable to investigate tbe operations of the Board and the effects produced so far. It may be necessary to revert to the procontrol conditions and allow f.o.b. sales, in other words to restore to tbe factories tbe freedom to trade as of old. It Js very necessary for producers to realise that the distributors have an equal interest with them in the butter trade of Britain, and producers and distributors must work together.