COMMODITY MARKETS AND PRICES.

Manawatu Standard, Volume LX, Issue 138, 11 May 1940, Page 12

COMMODITY MARKETS AND PRICES.

FARMING INDUSTRY. (By “Penloo.”) There is a strong demand lor dairy produce and wool, which the Bntisn Government needs. Banners are sending away all that they can spare of these commodities, but there is not much prospect of there being any expansion, except if the weather conditions are favourable. It we experience a reasonably fine winter, butter production may show some slight expansion, and favourable weather would be good for the sheep-farmers also. But against this there is the 'rise in costs. There is now an insistent demand lor a general increase in wages which, if granted, must ultimately reflect on the farming industry. The cost of living has increased substantially and the workers are naturally getting restive, and it is very probable that a general increase in wages of about 8 per cent, will follow. This will tend to .aggravate the position, for the increased wages must be recovered from the public by manufacturers and others, and that would mean a further rise in the cost of living. Another complaint of farmers is the shortage of farm labour and the high, cost of such labour when obtained. Thus, although farmers are obtaining reasonably good prices for their export products their income from this source is smaller because so large a proportion is swallowed up in costs. That is the position at present. "When the war ends, as all know it must, and end in victory for the Allies, what would he the position of farmers the world over ? It is crystal clear that all the nations of Europe will be very poor, and'saddled with an intolerable burden of debt To aggravate the position of farm producers, consumers are ' already becoming accustomed to the use of substitutes, margarine usurping the position of butter and staple fibre displacing wool. Those interested in the dairy industry are at the moment much concerned at the disparity in the retail prices of butter and margarine.. The position of butter at the moment is somewhat artificial. The elimination of supplies from Denmark has endangered the supply position in the United Kingdom. The present ration scale is 8 ounces per person, out the actual consumption, it is said, does not run as high as this, but is about 4 ounces, which was the previous ration rate. This reduced consumption should lessen the demand on reserve stocks, at least until the new season’s supplies from Australia and New Zealand are available. The war-time situation of butter is not unsatisfactory; it is the postwar situation that causes concern.

Margarine is having a big run in the United Kingdom, largely owing to the price factor and the rationing of butter. The retail price' of butter is Is 7d per lb., while table margarine is retailed at Sd per lb. But butter is not the only article in the menu that is high in price; for meat and other comestibles arc dear, making household economy a necessity. Therefore, it cannot be wondered that margarine at 8d per lb. is more popular with some of the British public than butter at 1s 7d per lb. Moreover, margarine has been so improved in quality that it now possesses all the necessary vitamins. A poworful corporation and the largest makers of margarine publish the following:

The fat and the calories are expressed in grammes. The corporation adds the following to its published reports on margarine: “The highest medical authorities' in the country state without any reservations whatever that a good brand of vitamiriised margarine is a complete dietetic alternative to the best summer butter and equal to it, constituent for constituent, in both, quality and quantity, though much less expensive.’’ The people of the United Kingdom are acquiring a taste for margarine, but taste or no taste the price factor which is so much in favour of margarine is most important. Margarine is not rationed, but butter is. After the war, when everyone may ho forced into the strictest economy,- margarine may continue to command a wide market. How are the dairy farmers to meet this competition ? Tho only course open to (hem is i o improve the quality, which is within their power, and reduce the costs of production so that their product may be sold at round about Is per lb. It is beyond their power to reduce costs, for costs are fixed for them by. an outside authority who is not concerned al>out the farmer’s welfare or his profits. But costs must be reduced or the industry suffer. Wool is menaced by staple fibre and it is now recognised that the outlook is serious.

Per 11>. Unit Butter Margarine Fat 376 5 384.7 Calories 3.503 3 579 Cost Is 7d 8d