MEAT AND WOOL

Sun (Auckland), Volume III, Issue 775, 23 September 1929, Page 10

MEAT AND WOOL

GRAZIERS FACE LOWER PRICES BIG LOSSES LAST YEAR Evidence that the New Zealand grazier will receive considerably lower prices for his v/00l and frozen meat this season is not lacking, according to several of the Dominion's leading exporters interviewed by a SUN representative. The wool-selling season has opened in Australia with the market well below that at the close of last year. In London, the September series opened last week with a further all round reduction. Admittedly, Australia handles a different type of wool to that offered in greatest quantities in New Zealand, but, nevertheless, any general movement in the market must be felt when the sale? open over here. Wool men on this side of the Tasman are not prepared to make definite statements on the prospects of the prices at the Wellington sale on November 14, but they do not doubt that they will be well under those ruling at the opening sales of last year; they see little chance of a recovery in the market over the next three months.

On the prospects of the position in regard to the overseas lamb market, exporters are unanimous. It is praeticallv certain that the general price level will be below that of last season. Exporters, for the most part, lost heavily last season, and buyers in New Zealand will be compelled to widen their operating margin. Keen competition last year induced buyers to offer prices which allowed no margin of profit on prices at Smithfield. In many Instances big losses were made. Buying with the hope that the market would advance or at least hold, their consignments to the Home market have met a gradually failing market. One North Island buyer operating in a big way is reported to have lost in the vicinity of £IOO,OOO on the year’s operations.

Lamb, for which the buyers in the Dominion paid as much as lOd a lb in the paddock, has sold down as low as B£d in Smithfield over the past three months. Apart from the visible loss of up to lid a lb, exporters have had to meet slaughtering and handling charges in the Dominion, freight and marketing expenses. The Trend Over the Season A leading exporter pointed out that, while up to lOd a lb had been paid for the best Auckland lamb for the greater part of the season, about the highest price received for this on the London market has been 9Jd. Consignments sent home had met with a gradually falling market. Some of the first lamb sent home in time for the Christmas market touched the top price for the season at 12d. This lot was shipped on the s.s. Ruahine and was a special consignment mostly from Hawke’s Bay and Auckland. By the end of January the top price for best New Zealand lamb had eased to 10 l-8d; by the end of February it was back to 9id; by the end of March to 9Jd; the market improved slightly in April to touch 9 5-Sd; it held fairly steady through May and June, but dropped to S 5-8 d at the end of July; the month of September opened with market for the best New Zealand lamb around SJd. The greater part of the lamb which sold at from 9id down to BJd was purchased in the paddock in New Zealand at prices above that level. In addition to facing losses on the meat, exporters have been selling their slipe wool on a falling market.

It can been seen from the above figures that the lot of the meat exporter has been far from a happy one during the past season. Sheer necessity will prevent him .from offering the keen competitive prices of last season. Apart from that, it appears as if the London market will open at lower levels.

Speaking regarding the prospects of the New Zealand lamb freezing season from an output point of view a representative of a leading exporting firm stated that there was every indication that Auckland would have another record season. Reports from the country indicated that the iambs were well forward, and that the season should open well within about six weeks time.