DANISH BUTTER QUOTATIONS.

Press, Volume XLIX, Issue 14829, 21 November 1913, Page 14

DANISH BUTTER QUOTATIONS.

It generally happens that when producers attempt to influence tho prices of their produce, they'fail. The reason is because they have not the sole control of tho market. We have had numerous illustrations in this country where attempts have been made by farmers to force up the prices of <rrain •j'uid potatoes by retUMnq; to soil except at their own prices. Wo also saw the same thing happen in oonncxiou with Imtter arid-cheos« last. year.. Another instance of tho kind is recorded from "Benmark, and it is of sptxrial interest to our dairy -farmers. A split took piaco >t • little, over a.year ago between the dairy companies, and the butter merehante.iri Corwnliagen, and tho farmers attemptod-to force prices by fixing their «wn quotation for butter, but the move

has not been successful. A recent issue oi the Danish butter trade '•Journal" thus rulers to the matter:—"The separate butter quotation, officially called the Copenhagen butier quotation by the Committee of Butter Statistics, was issued i'or th«: first thm* on August 20th, li)ll!, and hits now-been in force one yt-ar. For tho first four weeks it ran on evenly with the Exchange quotations, then it tried to force prices up two kroner extra, but failed completely. Foreign markets took no notice, and. account sales to the dairies showed no iniluenc oi' the 'advance.' 8o the new quotation had to lower its figures in the following week, and came even one kroner below the official quotation. Things have jjuno on much in the same way all iim>;igh the year since, the split between the dairies and the butter merchants took place. It is-tho merchants' quotation that expresses prices and forms the basis of all butter invoices here and abroad. Whenever the farmers quotation has tried to influence values by declaring a separate rise, it lias completely failed. The farmers' committee generally follow tho merchants' committee closely, to be on the safe side, and in order not to compromise themselves, just keeping their quotation one kroner higher than the other one, so as to show the tendency of tho institution, but they know well enough that Englishmen and Germans will not buy according to it. Apparently this extra butter-quotation is of no use to anyone, and is, in fact, taken very littie notice of at homo as well as abroad. When it is, nevertheless, continued it is because some of tho representatives for the dairy unions are of opinion that it has an indirect influence on prices in exercising a constant critique on tho merchants and making them keep tho official quotation as high as possible all through. But butter quotations do not govern prices aii3 values;' they aro merely expressing in figures tho movements which have already taken place, and if they declare an "unwarranted advance in a single week, there is certain to be a reaction following in the next. The farmers' butter-quotation is a luxury which is of no practical use, but which may at times cause confusion and do some harm. Attempts have been made occasionally to arrive at same compromise between the parties, without success." Neither Denmark nor New Zealand can control the' butter market, and dairy farmers must reckon with the trade as a whole.