THE HEMP INDUSTRY .

Manawatu Herald, Volume XLI, Issue 1947, 4 March 1919, Page 3

THE HEMP INDUSTRY .

POSITION IN AUCKLAND,

Tlie prospects ui.‘ I lie hemp industry ure not bright nt: present, in.consequence of the steady fall in prices on the world markets during (he past few weeks, says the Auckland Herald. As a result a number of the Auckland mills are closing down, and it is staled that most of the Manawalu mills will suspend operations tor the heason at (he end of the present month. The representative of one of the chief (lax broking (inns of Auckland stated yesterday that at present prices the millers, after paying working expenses and royalties, could make no profit. He added that this might appear strange in view of (he fact (hat hemp was at a higher price now than before the war, hut: pointed out that owing to the increases in wages and material used in the industry, the cost of production had advanced by about 50 per cent since 1914. In regard to freights, ho said (hat (hough there had been a reduction since I lie signing of the armistice (he freight charges on hemp wore still nearly five times greater than the pre-war charges.- Ample shipping space for hemp to Britain laid been available during the past two months, enabling merchants to complete old contracts. The world markets, however, appeared, to be well supplied at present, and no increase in price was likely. As tar as he could sec the only prospect ot a revival of the industry lay in the reduction of the cost of production and reduced freights. In regard to tow, he remarked that there was practically iIQ demand for it, and freights would require to be reduced by at least a third in order to render it possible to profitably ship tow to overseas markets.