FARMING AND COMMERCIAL.

Dominion, Volume 4, Issue 1163, 26 June 1911, Page 8

FARMING AND COMMERCIAL.

STRIKING AND INTERESTING

LAST SEASON'S DAIRY TRICES. SOME WORDS BY MR, HABKNESS. Some of tho observations of Mr. J. G. Harkness (secretary of, the National Dairy Association) on his recent tour of the Old World and its dairy produce markets are of great interest.

Referring to prices, Mr. Harkness said that in many instances there had been keen disappointment, because, expectations as to tho probable values had not been realised. Account sales for butter have not' shown that range of values which we were led to expect. If we.were able to make full allowance for probable contingencies, disappointment would be rarer, tinfortnnatuly the market prospects were frequently gauged by tho anxiety displayed by agents to procure outputs. This was an illusion as deceptive as that of tho legend of the "Man in the Moon." Competition is too keen for business to bo done, and is out of proportion to the competition, displayed in selling. In dealing with New. competitors, he stated that Siberia's output had reached 10,000 tons annually. "A nation that can," he continued, "within a few years, reach this- splendid position, must be taken into account. It is proof of the assertion that the question is now international, and that itjsono of those rapid changes. which denotes the . world js 'shrinkage.' In' other 'words, tho world's food granaries - and factories are drawing closer to the world's spheres of consumption, as tho result of rapid transit, improved methods of transport, and quicker dispatch of business. "Now, glance briefly at Denmark, which occupies to-day ■ the pride oj. place in the British butler trade. With an area of about 9,71(1,000 acres (rather more than four times the size of Taranaki); with a population of 2,675,000. she exports to "tho United. Kingdom yearly .about .£10,300.000 worth of butter: . Tho quantity imported equals -about 35,000cwt.. kegs weekly. .-Two-thirds '. of this supply —roughly from 20,000 'to 22,000 casks '.—is bought by.two English companies, viz.: the Maypole Dairy Company and the Wholesale* Co-operative Stores, and is largely consumed in the centres of population* throughout the north and midlands of England." The balance finds its way into other parts of the United Kingdom. Comparing the imports of Danish for the months of December to March. 1910-11 inclusive, with tho corresponding period 1909-10, it. will 1)0 found that the former ciceeds the: latter by'a considerable percentage. Much has been s'aid-nnd written (luring this year on the statement made by .one : of' the National Dairy Association's agents that the difference in price between New Zealand butter and Danish would be .'less.' To this a condition was attached, which through force of circumstances nullified the .possibility of giving full effect to tho proposal. What is tho exact position in reference to this?. Has anything boon accomplished, during the past .season to bring.about a'better result? ' . "If we turn to the weekly published prices, as issued by the Loudon Produce Exchange, which arc a fair criterion of value, we obtain these results. In the 'rear 1907-8/ from October to March inclusive, the' average difference in favour of Danish, as against New Zealand, was Is. 3d; per cwt. In 190S-9 it had increased to Bs. Gd. per' cwt. The margin of difference in 1909-10 was as high as 10s. 5(1. . Then, in the season now past. 1910-11, for the,same period,' it was Ps. 3d. per cwt. The increasing margin lias been stopped, and, to some extent, reduced. ' "In addition to those excess quantities there was the unprecedented and phenomenal output of Australia. When a country's surplus bounds from 22,000 tons to 35,0*00 tons-an increase of 50 per cent, -it must affect market values materially. I "Besides these heavy shipments ; which •7were. flooding the" market;-it was. estimated that,'., in London alono, in the early part of February, there was in cold store, probably unsold, from 350,000 to 100.000 boxes of colonial butter. This had a depressing effect on values, with the natural result that weak holders were makiug C.I.F. sales at from 3s. to 4s. under London terms, with each successive New Zealand shipment. In these facts you have, the disturbing,elements that invariably have a, downward tendency on any market, and, notwithstanding that repeated efforts were made to raise prices to a'higher level, it is impossible to force a. market 'to" a' point-that limits the consumption, and accentuates the evil. I" view, therefore, of- the enormous quantity placed on tho market in excess of possible requirements, we should congratulate ourselves that the net results are as good as they were. _ "With regard to cheese, the position was entirely different. At no period of the season was'the supply much in excess of the demand. This is a healthy condition. Consequently, account sales, from the beginning of the season to the end, should'have shown better prices. Take as an illustration the state of the market just prior to the arrival of the Turakina. Cheese was'then selling at 00s. Gd., and it ought to have been worth from G2s. to 635. A determined effort was made to raise it to G2s., and just as strenuous efforts were made to pull it down. Fortunately for those who had shipped on open consignment, the latter price was maintained."

HEWS AND NOTES.