H.—l7

12

I append a few remarks regarding the markets for tlie last year for the principal items mentioned in the foregoing table. Wool. —Owing to the stringency of the money-market, and the lack of competition, there was a heavy slump in the prices obtained for wool during last year's sales. Many wool-growers and merchants were of opinion that the fall experienced at the first sales in July, 1907, was only temporary, but this idea proved to be incorrect, for each report received up to the May sales of 1908 showed a decline, and those who held on to their wool anticipating a rise had their hopes frustrated. The average values received, however, do not compare unfavourably with those of previous years, with the exception of 1906—T, when the price of wool was particularly high. There has been a general demand for fine merino, and this class of wool did not suffer, as far as values are concerned, to the same extent as heavy merinos and crossbreds. The fall all through has been heaviest in coarse-grade wools, owing to the demand of manufacturers for the fine and light grades. In May, 1908, values took an upward turn, and each sale onwards has shown an advance of about 5 per cent, and upwards all round over its predecessor, owing, generally, to the Americans coming into the London market for their supplies in large quantities. Lamb. —There has been an exceptionally good demand for lamb during the year, and prices have been steady and high. The demand for New Zealand lamb outside the area of London is satisfactory. During the period under review lamb touched 6£d. and 6Jd. per pound frequently. Present indications predict a good demand for lamb during the summer and autumn seasons in Great Britain. New Zealand lamb averaged l£d. per pound over that exported from Australia. Mutton. —This commodity has hardly maintained the prices realised during the previous twelve months, owing to a great extent to the large proportion of heavy carcases exported. The greatest demand is for prime light-weight mutton, and as this quality sometimes realises from £d. to Jd. per pound more than heavy-weight carcases, it is worth while for the producers to consider this feature of the trade. North Island mutton, as in previous years, has been quoted at from £d. to fd. per pound below prime Canterbury brands. Beef. —As the quantity exported shows, the demand for New Zealand beef abroad is still small. Slightly better prices have been realised, but, as large shipments of chilled beef from America and the River Plate arrive in London and west-coast ports regularly, the price of the New Zealand product is entirely ruled by these factors. The price of fores averaged fd. to fd. per pound less than that obtained for hind-quarters during the year. Salted or Boned Beef. —An increase in exports is again shown this year, all shipments leaving here generally finding their destination in Liverpool and Glasgow. There is still a very strong opinion in Great Britain against the importation of beef packed in this manner, and from a report of the Produce Commissioner it appears likely that steps will be taken by the Imperial Government to prohibit its importation. Several shipments to Glasgow turned out badly, and were condemned by the Health authorities. Live-stock. —The outside demand for live-stock has been small and confined, owing to sellers here having their own opinion as to values, and declining to reciprocate with the fall of prices in Australia. Preserved Meats. —It is gratifying to note an increase of 10,843 cwt. during the year, or a total increase of 38,701 cwt. since the Chicago scandals caused an upheaval in the canning trade. New Zealand tinned meats are growing in popular favour, and packers are kept busy in order to cope with the demand. Rabbits and Hares. —Regular shipments find their way monthly to west-coast-of-England ports and Glasgow, and the trade in this direction is increasing. Although New Zealand rabbits are from 10s. to 15s. per case dearer than Australian, the demand is steady, and prices have been fairly well maintained. The prospect of increasing the trade largely is not encouraging. Bacon and Hams. —Owing to the high prices ruling for, and the reported scarcity of, fresh and cured pork, an increase in the quantity of bacon and hams exported was hardly anticipated. Nevertheless the excess over the corresponding period last year was 401 cwt. Owing to the fact that wholesale rates have ruled for some considerable time past at to 10d. per pound, the increase in value of £1,792 is explained. Hides. —The steady demand in Australia and the United Kingdom for New Zealand hides still continues. Averaging as they do over £1 each f.0.b., the value of hides exported this year amounts to £188,367, which shows that this trade is rapidly developing. Sheep and Babbit Skins. —Values have been well maintained, and, although there is a slight decrease in the number of skins exported, an increase in value of £144,140 is shown by the official returns. America is a large customer for pelts, and some of the big American houses have established branches in the Dominion for the local purchase of skins and pelts. America and Germany are also considerable buyers of sausage-skins (casings), the total trade this year in this particular line amounting to £65,894. Tallow.— The small decrease in exports is accounted for by the fact that the beef and mutton killed in the Dominion this year is slightly less than last. Prices have been a little irregular in London, but as most tallow is bought on direct orders this feature has not affected shippers, unless, of course, they elected to consign to open markets. Butter. —During the whole season the market for New Zealand butter has proved exceptionally good, and the highest prices on record have been obtained for produce exported from this Dominion. The main cause of the high prices realised was the shortage of supplies of butter imported into the United Kingdom from all butter-producing countries. Exports from New Zealand show a decrease of 37,007 cwt., caused in the first place by the dry season experienced, and also by many factories turning their attention to the manufacture of cheese. The month of February, 1908, saw the greatest excitement in the butter-market, when the price touched 1525. per hundredweight for first-class quality, and as heavy supplies reached the United Kingdom from New Zealand during