The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNESDAY, FEBRUARY 26, 1960.

Hokitika Guardian, 26 February 1930, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNESDAY, FEBRUARY 26, 1960.

PRODUCE PRICES

Tiie drop in dairy produce, and wool prices is a matter for serious concern all round. The wool grower, like the dairyman, has to depend on the current markets year by wear. Produce has increased of late in most countries. The effect of the war period is passing, and industrial activity is leading to increased produce. Quantity is meeting the demand, and naturally thej;e is a levelling of prices. The lot of the wool grower has been acute of late in the Dominion. There has been a clash between buyer and seller, and tne latter :not heiing satisfied with prices has been holding to such an extent that a buyers’ boycott resulted in Wellington. This impasse has now been settled. As a contemporary puts it, there is no doubt that a quite moderate) rise in values would bring about a. quittance of this season’s clip. But it is not surprising, and indeed is only to be expected, that the woolgrowers, with their knowledge of the violence of the fluctuations to which wool-is subject, should hesitate to allow their product to be sacrificed at prices that may not equal the cost of production if, through a slight extension of the selling season, they may lie afforded at least the chance of a recovery in the price. Moreover, even from the wool buyers’ point of view, there are considerations that are to be set off against those connected with the expense of attendance at the sales, ff growers are prepared to spread the offering of their wools over a longer period than has been considered in the past to lie the selling season, there must lie a considerable advantage to buyers in the spreading of the financial accommodation required by them to carry over their purchases. Every prudent farmer realises the advantages that arise from the existence or steady markets and the grave disadvantages that lie suffers when lie is at the mercy of speculative elements. He is prepared to shoulder some share of the financing risk l>v agreeing to spread sales under which legitimate manufacturing buyers may obtain more regular supplies with a minimum of overdraft burden to them. The

course that is proposed would not eliminate speculation but would contri ouate materially towards minimising it. At any rate, in circumstances under which growers both in the Commonwealth and this Dominion are willing to incur some expense in an attempt to stabilise the market, it night have been supposed that the •Tool Federation would take the longei view that has been advocated by its own president. As a cable message last week showed, tiie president of the Federation has suggested, that growers in Australia, New Zealand arm South Africa should actively co-opei-ato with the Federation itself in the consideration of such technical matters as cross-breeding, marketing, and packing, and that the study of distributive efficiency is of prime importance. It is to be feared that it would not lie of much use to discuss crossbreeding unless the price of wool is to be better than the cost of production of the commodity, but there are many points in connection with the industry that might advantageously be considered in conference. While, however, the difficulties at the manufacturing end of the industry may be explained in words, those that are associated with the growing end-can hardly be made fully intelligible otherwise than by demonstration. : The fail in prices has been so general that it- suggests the decline will remain. This applies to produce all round, and it is for producers to study the situation closely, and meet the general situation as lar us they can co-operatively. With tiie level of prices' lower, production costs must be reduced if the net return is to- equal living requirements. I bis is an aspect which calls for very serious attention ere another season comes round.