The Taihape Daily Times AND WAIMARINO ADVOCATE TUESDAY, MAY 2, 1916. AFTER WAR PRODUCE PRICES.

Taihape Daily Times, Volume 8, Issue 103, 2 May 1916, Page 4

The Taihape Daily Times AND WAIMARINO ADVOCATE

TUESDAY, MAY 2, 1916. AFTER WAR PRODUCE PRICES.

(With which is incorporated The Tai hape Post and Waimarino News.)

The question of after war values of New Zealand produce was discussed in these columns some time ago. It arose in connection with a conversation we had with one of this district's large farmers, who feared that directly after the close of the war there would be a very bad time indeed to be experienced for several years, for our wool, meat, butter and other New Zealand commodities. That the market, would collapse and prices sink below a profitable point for many small men on the land. We urged that there were no indications pointing to any such calamity, and that, although members of the Government were making rather pessimistic utterances, the world's needs could not be less than what they were before the war commenced. Since then the reports of the greatest produce firms in Britain, if not in the world, have come to hand. These reports are very encouraging so far as they touch upon the future. There will unquestionably be distress in consuming countries, because the medium of purchase will be very scarce, but New Zealand is classed as a producing country and her products will be in almost as great demand to feed the consuming or nonproducing countries as ever they were before war. It is probably true that there may be a slight decline in the needs of England, but new markets have been opened in Allied Countries where every class of stock has become depleted to such an extent that it will require several years to make good. On the Other band, it is not at all certain that the demand in Britain, even, will be less than at present. The economy campaign will end with well-to-do people, and it is inconceivable that labour will ever drift back to the semi-meatless diet that was compulsory to an extent in many quarters. In our article we anticipated what the great produce companies in their annual reports now fully confirm. They are cautious in avoiding to convey false impressions, but they state clearly that underneath all the war conditions which render any ordinary market forcecast impossible there remains the intrinsically sound statistical position, which was developing steaidily for years before the war

broke out. It is important to note that i normal consumption had overtaken normal supply, and that that position remains unaltered to-day, if indeed it has not become accentuated. These Companies plainly state that all the markets existing when the war broke out now remain intact, and it is almost certain that additional markets are being created by the war in France, Belgium and Italy, if not in some other countries. At present no one can say when the war will end, but opinions of results immediately it dees end are extremely divergent so far as they will affect consuming countries primarily. One side's opinion is influenced by the time of dire distress following old time great wars, but, as we previously pointed out, this war is colossally unlike any precedent. No previous war ravaged continents, stopped production, ate up almost every living thing, leaving almost a blank in stock raising, or meat and wool growing, that will have to be commenced ab initio after this war. It is apparent the demand for replenishment of stocks and the replacement of wastage of war there must be an exceedingly strong demand for what we have to sell, not forgetting that while this is going on peoples must be I fed. In some countries everything will I have to be replaced, and this replenishing will assuredly proceed on a scale parallel with the financial ability of the respective countries. It is urged by some produce companies that although the demand for meat may fall slightly in Britain, great competition will arise for what we have to sell in other countries where wholesale slaughter of sheep and cattle has undeniably left the people almost without any home source of meat supply. Reports uniformly state that stock breeders and producers need have little fear or anxiety that stock values will decline. During the whole of this year, at least, Government will continue meat-buying,, and the surplus going to produce companies is not likely to be greater than in the past, which indicates beyond much doubt that it is next to impossible for prices to decline very appreciably, if at all, during the next twelve months. Tempted by high prices other patrs of the world have contributed meat supplies, but in doing so they have weakened their breeding capacity, rendering them a possible competition which need not be taken very seriously for a few < years to come. Taken all round, from all sources of reliable information, producers in New Zealand have a highly profitable time before them for several years to come. While a large portion of the world would be in a state of semi-starvation were it not for.producing countries, there will be little lessening of either demand or prices of produce, and New Zealanders may safely rejoice in this fact.