DEPRESSED CONDITION OF POTATO MARKET

Sun (Auckland), Volume 1, Issue 98, 16 July 1927, Page 10

DEPRESSED CONDITION OF POTATO MARKET

POSITION IN THE SOUTH WEAK NORTHERN DEMAND (.Special to THE SLAV.) CHRISTCHURCH, Friday. The potato market this week attracts attention of cereal and produce merchants to the comparative exclusion of other lines. The position of potatoes is at present more unsatisfactory than it has been at any time during the year. At this stage of the season, given an average crop, prices should be nearly double what they are to-day, and the low price at which tubers sell is taken by some people as an indication that there is no heavy consensus of opinion behind the idea that the crop has been the failure so generally described. Others hold that the fact that potatoes continue to come forward and keep the price down does not indicate a plentiful supply, but that farmers, owing to hard times, are forced to sell where, under ordinary circumstances, they would hold for the rise which should follow the digging of the light crop. GOVERNMENT FIGURES On top of this state of affairs has fallen the publication of the potato crop figures by the Government statistician. The figures are returns from 120 out of the 129 counties comprising the Dominion. They show an increase of 473 acres in area planted and an estimated yield of 135.099 tons, compared with 143,781 tons last year. The estimated decrease in the crop is therefore only 8,682 tons, or a fifth of a ton an acre. Against that 22,000 tons were shipped to Australia last year, so in view of this year’s embargo on New Zealand tubers, an excess of 13,318 tons over last year would seem on this reckoning, and that of the Government office, to be available for New Zealand in 1927. The publication of statistics had a great deal to do with the demoralisation of the market. Whether this unsatisfactory market condition is really justified, however, is another matter. The feeling that the crop was a poor one has rarely been so strongly expressed as in 1927. Many Christchurch merchants consider that the Government’s figures from this office, usually so reliable, are in the present case not in accordance with figures shown by results of digging. Those holding this view maintain that material from which statistics were compiled was obtained too early in the season for farmers to have been able to give accurate data concerning their crops. THE AUCKLAND MARKET

The potato market has been confronted with worse situations than the present one, and has shown rapid recuperative capacity. The Auckland market, judging from telegrams received, is very quiet and flat. Christchurch merchants are not clear as to why this should be, as on their reckoning, there should be no more than 8,000 sacks in the Northern centre, including a shipment by the Katoa now on her way up the coast. The 2,640 sacks which the vessel takes is the smallest shipment made this year. Timaru is. sending only 400 sacks by the Katoa to Auckland.

A Timaru banker stated on Wednesday that most of the potatoes from South Canterbury were finding their way to Dunedin. The market there had been attractive for the past six weeks, and potatoes were selling at an equivalent of £ 5 9s 6d f.o.b. South Island.

Auckland to-day offers only £5 South Canterbury farmers are firm holders, and are only selling sufficient to cover the expenses of digging their crops. Prices for prompt and July shipments are equal to £ 5 f.o.b. South Island. Most of the sales are “on paper.” August to September shipments are quoted at £5 7s 6d.