THE HEMP INDUSTRY.

Manawatu Herald, Volume XXXIII, Issue 940, 12 January 1911, Page 2

THE HEMP INDUSTRY.

One of the chief topics of conver sation in this district is the depressed state of the hemp market and the future prospects of the industry. For some months past the market value of hemp has gradually declined, and the price at present quoted for “ good fair ” leaves a very small margin of profit for even the most favourably situated millers. Some mills have already had to close down, while others are running under the strictest economy, on account ot the green leaf landed at the mill being too costly to allow ot hemp being produced with profit at present market price. Even millers favourably situated, .whom the royalty does not seriously effect —experience great difficulty in making both ends meet, but are anxious to keep the stripper going in preference to allowing their valuable plants to deteriorate through idleness. Various causes are assigned for the drop in values, but those directly responsible are no doubt the very large output of Manila, the fact of manufacturers being somewhat overstocked, and the unrest in matters generally in the Old Land consequent upon the recent general elections. Those, however, who should know something of the prospects of the industry express the opinion that better prices can confidently be looked for in the near future, and in fact during the past week the price lor “good fair” has advanced ten shillings per ton, which is a very hopeful sign. The very large output of Manila naturally effects the price of our hemp, but for certain uses it has been found that the New Zealand article is more suitable than Manila, and manufacturers having installed machinery for dealing with it there will always be a demand for a certain quantity. Another very hopeful sig# is that hemp buyers are particularly anxious to enter into contracts at the present time, and must therefore be quite satisfied that at any rate the prices have now reached bottom, and, if anything, an increase in price can be looked for. In times of depression one always hears a good deal about lessening the cost of production, but at present there does not appear to be any chance of relief for the miller in that quarter. The wages are fixed by an award of the Arbitration Court, and the question of royalty — which a short time ago was such

a serious one—has been settled by a sliding scale, apparently satisfactory to both miller and owner of the green leaf. The cost of production cannot be lessened, and therefore the miller must find another way out of the difficulty, and one that appeals to us is improving the quality of the hemp, thereby commanding higher prices. It would appear that in this direction there is ample room for improvement, as millers in the past have been too willing to sacrifice quality for quantity, being quite satisfied, provided the maximum quantity were put through the machine to dress the hemp in such a way as to squeeze into “fair” or “good fair ” grade, according to what they had contracted for. Until recently “fine” grade hemp was not milled in any quantity in this district. There is a good demand for this grade, and the price offered for same varies from 30s to £5 per ton more than that offering for “ good fair. ” Of course, to produce “ fine” it is necessary to exercise more care, and also to sort both the green leaf and the fibre, which means the employment of extra labour. This extra expenditure, however, is more than repaid by even the minimum additional price obtained. Of late one firm of millers in this district have turned their attention to the production of “ fine,” and are meeting with no small amount of success, a very large percentage of their output grading “fine” and high point “good fair.” Of course, it would be impossible to mill “hue” exclusively, but there is no gainsaying the fact that the higher the grade of hemp produced the belter it will be for the industry as a whole —for it will raise the standard of the product on the foreign market. We are optimistic as to the future, as present indications point to a rising market.