PRIMARY PRODUCTS.

Taranaki Daily News, 17 June 1922, Page 5

PRIMARY PRODUCTS.

BETTER TONE OF MARKETS. CONFIDENCE IN THE FUTURE. BRIGHTER OUTLOOK FOR PRODUCERS. Wellington, June 16. Dairy produce, meat and wool were topics touched on by the chairman of the Bank of New Zealand in his annual address to-day. Referring to dairy produce Mr. Elliott said:—Weather conditions having been exceptionally favorable, there has been an increase of about 16 per cent, in the production of butter-fat. It is reported that offers of Is lOd per lb for butter and 10$d to> 11 5-8 d for cheese lyere freely made at the beginning of the season. Unfortunately, few of these offers were accepted in the North Island, the companies electing rather to ship their product on consignment. The result is that they will receive in the neighborhood of Is 3d for butter and 8d for cheese. Owing to the accumulation of large stocks of Australian and New Zealand butter in the hands of the Imperial Government, for which high prices had been paid, the market collapsed when the Government determined to realise their holding at the best price obtainable. Reduced prices, however, soon led to increased consumption, ajid the market has since improved.. Towards the end of 1921, the prices for meat fell to alarmingly low figures, and producers, on the assumption that they were being exploited, took preliminary steps to bring about the establishment of a compulsory pool for the marketing of their produce. Early this year Parliament passed the necessary legislation for th© creation of a Meat Export Control Board, which was organised in due course, and has already done good work, mainly in the way of securing a reduction of freezing and shipping charges. Prices of lamb and mutton have risen—quite apart from any action by the board—to fairly satisfactory figures, but beef is scarcely worth exporting. It is hoped that conditions in the future will render it unnecessary for the board to put the compulsory- provisions of the Act into operation. Australia’s experience of compulsory pools has not been satisfactory, and it has been proved time and again that the less interference there is with the ordinary course of trade the better.

Looking back to the position of the wool market as it was twelve months ago, there is cause for satisfaction in the present state of the markets. At that time, the position seemed hopeless. During the latter half of the year, however, a steady demand from all sections of the trade has been experienced, which has resulted in the disposal of practically the whole of the present clip, and also the carry-over from the previous season. Values for South Island wools are fairly good, and it is to note that prices for the coarser wools have latterly shown a steady improvement. Although the stocks of coarse wools held by 8.A.W.R.A. are heavy, they are gradually disappearing, and the future may be looked -forward to with confidence.