WELLINGTON NEWS

Hokitika Guardian, 18 May 1931, Page 7

WELLINGTON NEWS

PRODUCERS AND PRICES. (Special Correspondent.) WELLINGTON, May 15. It is calculated to cause a feeling cf depression when one examines the official figures of the exports from the Dominion for the first three months of this year and compares them with the figures for the corresponding term of last year. Almost every item shows a contraction in actual money return, and the purchasing power in consequence more or less crippled. During the first three months of this year the butter exported from the Dominion was valued at £3,573,810' as compared with £4,914,102 in the corresponding term of 1930, a decrease of £1,340,372. Some part of this decline was no doubt due to the smaller quantity exported, the act Cal contraction being 42,992 cwt. The average f.o.b. value of the butter exported this year is Ills per cwt while last year the average was about 1435. It is doubtful whether Ills can be accepted as correct, at all events the price now is about 107 s. The cheese exported during the three months amounted to 679,122 cwt as compared with 616,723 cwt, an increase of 62,399 cwt. J3ut notwithstanding this appreciable increase in quantity there was was a catastrophic drop in value. The larger export valued at £1,879,502 as against £2,353,241, a shrinkage of £473,739. The value of the cheese exported this year averages 65s per cwt., while the London price to-day is about 475, and big stocks arc held, The onfSein exported was about 3000 cwt less and the value was £34,. 402 flu oompared with £01,055. The export t)f dried milk showed an increase in quantity of about 250,0001 b, but the return owing to the fall in prices was less, being £107,607 against £115,191. Milk and cream preserved, condensed showed a big decline in quantity, being 314,5371 b against 1,044,6971 b, and of course the value wa s small accordingly, the figures being £6,741 against £22,118. These five products of the dairy industry according to the export values aggregated £5,601,522, while lor the first quarter of last year the value was £7,456,787. There was thus a shrinkage of £1,864,265, equal to about 25 per cent., and this, according to an authority, whose views were published in a Wellington morning paper, has strengthened the position of the producers immensely. The figures for frozen meat disclose the same dismal story. The export of frozen beef which was about 23,(XX) cwt less than last year, was valued at £117,239 as compared with £210,721. Enozen lamb (whole earcase's) show a substantial increase in quantity the figures being 919,132 cwt against 774,073 cwt, but notwithstanding the increase the value was less standing at £2,526,214 as against £2,672,243. r _ 'Die export of mutton (whole carcases) was about 27,000 cwt less but the decline in value was abotit £286,000, the figures being £486,218 against £772,708. Mutton and lamb joints were valued at £I4OO against £4289, the quantity exported being less than half and the prices lower. These four leading items of the frozen meat industry were valued in the aggroate at £3,131,071 n s against £3.659,961 a decrease of £528,890 equal to about 14| per cent. "Wool and sheepskins showed the heaviest shrinkage. There was a decrease of about 29,000 bales in the quantity exported but the drop in values was very pronounced the figures being £1,971,349 against £4,171,483, actually a TPD decline. The number of sheepskins without wool imported this year was substantially greater than last year the figures being 2,944,970 against 2,694,085 yet the value was just about 50 per cent, less, the larger number being valued at'£176,9(4, against £79,448. Sheepskins with wool disclose the same features. The number exported was 517,297 against 404,650 while the value was £59,300 against £113,944. Wool and the two classes of sheepskins were valued in the aggregate at £2.207,621 against £4,634,875 a decrease of £2,427,252 equal to about 52 per cent. The above main export products furnish us with the bulk of the income. The ton items that have been reviewed here show ia (shrinkage in value of £4,820.307, while the total of the exports for the three month* was £12,156,418 as against £17,569,326 a drop of £5.412,908, Farmers have to pay: practically the same in costs now as they did when butter was at say 190 s and cheese say 945. The costs of manufacture may he less, but cost of transport, handling charges are the. same with slight setoff in the rate of exchange. In the face of this is it any wonder there is unemployment. The income is reduced and tnat gives rise to the demand for reduced expenditure.