DANISH FARMING

Hawke's Bay Herald-Tribune, Volume 81, Issue 2, 25 September 1937, Page 11

DANISH FARMING

Common Interests With New Zealand QUOTA ON PRODUCTION Some three years ago I accidehtally met a man who happened to hold Jan^ zmportant position with. dairying interests in New Zealand, wriies Mr. T. J. Brask, Dairy Adviser to the Danish Government, in a reeent issue of Hansen's Dairy Bulietin. Taking advantage of the situation, I put the following indiscreet question to hira as frankly . and unconventionaily as i cOuld: "How is it that New Zealand continues to incnease tho butter production as by its action it spoils the butter business not only for herself, but for Denmark and other countries as well?" The answcr givon was to the effect that New Zealand butter production had attained its present high volume because it was, so to speak, "made to order," since England during and after the war had held that Great Britain was prepared to take all the butter New Zealand could produce and pay a ggod price for, it. Continuing, the New Zcalander said that reeent years' developments have shown that New Zealand butter cannot fetch a remunerative price, and it must be evident to everybody that New Zealand cannot reduce its production all at once. In the opinion of our visitor, however, the pro- . duction would automatically reduce itself. The profits of the New Zealand farmer would become so small that he could not afford to buy aj-tificial manure, and the result would be xedueed milk production. The New Zealand producer is quite aware, he stated, that reduced production is the xoad to better prices and a better return. Growing Production. Following the conversations with my overseas friend, I had every reason to believe that New Zealand, at any xate, was not. likely to increase her butter production further. But what has happened? Contrary to expectations, New Zealand butter production has since eontinued to gro'w except £ oi a small setback in 1935, and the year 1936 was bigger ,than any previous year. . As mentioned in Hansen's Dairy Bulietin, December, 1936, issue, attempts - -were made by Denmark to xeaeh some understanding with Australia. and New Zealand with the vievy of attaifiing bet--ter- priees ?and »thus impxove„the eeonomy of dairying in general. In the opinion of Denmark, it is better for ajl concerned to make the production remunerative at the cost of the quantity than by sustaiping a large production, which must bo .reaiised at a loss. Wel have had some, difficulty in Denmark in understanding the reasons why our offer should meet a "cold shoulder." Gradually, however, it has dawned upon us that the lack of interest in our scheme, apparent from. the attitude of New Zealand and Australia, was, amongst other things, due to misapprehension of the potentialities and abilities of Danish farming and the Danish iarmci. In the Danish p,eriodical of Nordisk Mejeri-Tidsskrift • Just • Moller states that the poliey. of Australia and New Zealand" is based, amongst other things, on the assumption that Denmark is unable to increase her butter production, and consequently that country is more interested in coming to a quota arrangement than the other two countries, which may yet for many years continue to considerably increase their butter production. If this view be general, as it seems, it may be appropriate to correct same, and tho following figuras may prove helpful, No Limits In Denmark Some people have said that therc are no limits to how big crops the Danish soil may yield. Whether this be 100 j per cent. right may be doubtful; but at any rate, it may be safely contended j that the limits . to Danish production have certainly not been reached by far. According to the official Danish statistics, the average harvest for the five years 1909-13 was 54 millions of crop units. For the five years 1929-33 tho corresponding figUTes reached 104.8, and in 1935, 111 millions of crop units jwere produced. Accordingly, > the Danish farmer has in course of 20 years eucceeded in doubling the harvest yield, and most likely this perfomance can be repeated. As to the butter production, it should be remembored that Denmark in 1889, when the country was covered with cooperative dairy factories, had a surplus of butter for export aggregating 27 million kilos. Ten years later this surplus was doubled, as in 1S99 it amounted to 55 million kilos. At that time the opinion prevailed that zenith in Danish butter production had been reached and that no further increase .was possible. In 19.14 the surplus export figure was again nearly doubled^ Teaching 99 million kilos. Following a considerable reduction during the years of the Great War, the export again began to increase from 1918, and in 1931 tho surplus export

figure xeaehe'd 170 jnillion kilos,-of -butter, As a result of the low butter prices, the butter production now grew smaller and, consequently, the export was in retrograde. In 1935 the surplus butter export *i'or only 138 million kilos, Dheap.er Dairying* In explanation of this axtificial r«sduction, it may bo eai.d that the farmers took advantagq of the occasion while low prices prevailed to purify the herds for T.B.'s. and this process is being xapidly proceeded with* In co.nseqnence, there is in Denmark to-day a great number of .districts entirely void of T.B. herds. and the number of such T.B, free districts ia rapidly growing. All this will tend to maka dairying more remunerative and, render butter production cheaper. It seems to me that the abovej |g a fairly good proof that Danish dairying has not by any means reached zenith of productivity. The reduced produe-i tion in reeent years should, eorrectly judged, be a further proof of the Danish farmer 's sound reaction to the low prices of butter. When he now sees that Australia and New Zealand, in spite of unremunerative .prices, continue to jnerease their production, it is clear to him that he cannot proceed along that road any longer if he is not to drop behind, and it is noteworthy that the production js. now again pa the increase. ' ; The Danish' farmer, however, & still hoping that his brother-in-the-trade in the sonthern hemisphere will eventually understand that it is bad poliey to fill the market toi such an extent that the. prices which the -butter may fetch are not paying. He has not yet giveh up hope that some agreement may be come to by which 'production regulatad in such a manner and to such an extent that conditions are creatp.d- whieh will xender production more remunerative for. all parties poncejned* | V, sp*