The Sun 42 Wyndham Street, Auckland, N.Z. THURSDAY, NOVEMBER 17, 1927. A FAVOURABLE OUTLOOK

Sun (Auckland), Volume I, Issue 204, 17 November 1927, Page 10

The Sun 42 Wyndham Street, Auckland, N.Z. THURSDAY, NOVEMBER 17, 1927. A FAVOURABLE OUTLOOK

THE vital importance of the improvement in market conditions for producers may be gauged by the fact that more than half of the whole industrial population of the country is engaged in primary production. Fortunately for these workers, but more fortunately still for the disproportionate majority that contrives to escape the perspiring punishment of Adam, the improvement is in no way capricious. It is the outcome of diverse circumstances which have a foundation solid enough on whieli to build a reasonable optimism for the good of all concerned. The outlook is favourable for at least the remainder of the year, and there is no visible reason for anticipating a sharp set back at any time throughout the present season of primary production. This agreeable prospect is due partly to special conditions in oversea countries and partly, in a lesser degree, to the appreciable advantages New Zealand experiences, if not enjoys, in respect of comparative freedom from drought and other destructive climatic circumstances. Though the initial advanced prices for the new wool clip may not be sustained at the same level at subsequent sales, the nature of the opening demand and the needs of manufacturers overseas justify confidence in the strength of the market to maintain a very satisfactory average of prices for the season. But it is in respect of the market conditions for dairy produce that the outlook for Christmas, and the New Year is most favourable and conducive to optimism and more active enterprise. Of course, it would he foolish to expect a continuous ascent of prices. Even in the best conditions producers must be prepared at any time to experience fluctuations in the market. Commercial forces are at work all the time to take advantage of every varying circumstance throughout the producing world, and if there be any opportunity for reducing prices we may be sure that a reduction will be effected. Making due allowance for such operations, however, the existing conditions favour the producers of this country. It is to be noted with appreciation, for example, that the marked increase in New Zealand butter production this season, particularly in this province, has been almost wholly absorbed by increased exports to Canada and Australia. Indeed, it is estimated that Canada this year will take something like 200,000 boxes of New Zealand butter. That is an official estimate which is fortified by an authoritative report from the iiondon manager for the Dairy Export Board to the effect that, up to about the end of September over 50,000 boxes had been sold to Canadian importers at varying prices, which on the average would equal a sold-crat price in London of 176s—180s. At this time last year the stock of butter in London cool stores was close on 900,000 boxes. A month ago the stock in London from all sources was only a quarter of that great total. The depressing weight of reserve stocks has been dissipated this year by increased consumption, steady selling, and the effect of drought in countries competing with New Zealand. The latest advices from London forecast a firm market for butter until the end of Yuletide. It is to be hoped, however, that neither the producers nor the public generally will take it for granted that the conditions, though making for confidence and progress, warrant a careless carnival of national extravagance.