THE PRODUCE MARKETS

Taranaki Daily News, 17 November 1926, Page 4

THE PRODUCE MARKETS

BUTTER, MEAT AND WOOL. PROSPECTS EXAMINED. (Special Correspondent.) The produce season may now be said to have begun in New Zealand. The dairy factories are the first to resume business; then the freezing companies commence operations, and the marketing of wool follows. It is worth while to examine the market prospects in the light of present economic conditions. The butter market is depressed, and the free stored butter is selling down to 138 s, while controlled butter, though still nominally at the "named” price of 150 s for finest, and 148 s for first grade, it is stated that very little business has been done in controlled New Zealand butter, and a private cable message from London reads: —“Butter business stagnant. Buyers resenting price-fixing adversely affecting all interests.” It is quite evident that the Dairy Control Board has not yet reached a satisfactory working basis with Tooley Street, which is somewhat of a pity. It seems clear at the moment that “named” prices for controlled butter must be reduced, but the rules under which the board and the agents are operating are not sufficiently flexible to enable a reduction to be made. This can only be done at a formal meeting of the Board and the committee. From present appearances it seems extremely probable that the dairy factories will experience a very unprofitable season. The butter market is ever a fluctuating one, and it may easily happen that, with the stored butter cleared values may rise. However, it is well to femember that the purchasing power in •Britain is not what it was a year ago, and for that reason, if for no other, prices are bound to be on the low side. The frozen meat market is also unsatisfactory. The lamb market is weak and the demand is poor, and the frozen mutton market is in the same depressed condition as lamb. It is very unfortunate that the freezing companies should be faced with labour troubles just now. The industry cannot stand any increase of wages. On the contrary, the time has arrived when costs and overhead charges must be reduced. The unfairness with which the awards of the Arbitration Court act. upon the employees as compared with the employers is finely illustrated in this case. What would have been the position if the freezing companies, on the grounds of heavy losses in the past season, had refused to employ labour except at a reduction of 10 per cent, in wages? The Labour unions would be up in arms, and the* freezing companies would be criticised and condemned as exploiters of labour. The workers, who are parties to the Arbitration Court award, are flouting the award, and they are heroes in the opinion of the well-paid union officials. The wool trade is not very satisfactory, for although wool is wanted by most manufacturing countries, purchasing power is not very strong, and the market is reacting to that. The low price of raw cotton is also a factor in the situation. All our products are meeting with dull or depressed markets, and if there is no improvement, the national income must be reduced. The prosperity of New Zealand depends on the prosperity of ' the farmers, and unless there are changes that cannot be foreseen now, there will be a slump in labour after the Royal visit.