PRICES OF MANURES.
REDUCTIONS ANNOUNCED. M > ‘ , COST OF MANUFACTURE. The frequent complaints by farmers about the high price of manures have a national significance, because the use of manures directly affects the amount of primary production upon which the financial stability of New Zealand depends (says the Auckland Herald). No farmer can hope to keep his place in the race unless he uses manures, But throughout the war period their cost became almost prohibitive. Prices have continued high, and, since the slump, have been out of all proportion to the value of the products of the soil. Very welcome reductions in the prices of superphosphates have been announced this month, and it would appear that in this respect the farmer is going to be more favorably placed, although there are many who believe that the manufacturing companies are obtaining too great a margin of profit. The reductions announced ranged from 12s 6d to 30s a ton below those of the previous price lists of six* months ago. The greatest reductions have been made in higher grade superphosphates, supplies of which are readily assured owing to the high quality of the phos-/ phate rock from Ocean and Nauru Islands. The manufacturing concerns doubtless desire to encourage the use of the high-grade “super” on account of future business, it being affirmed that the unit value of the better grades is higher than that of the cheaper classes. At the same time, the fact should not be lost sigh of that experiments carried out recently in America, Great Britain, and New Zealand go to prove that ordinary ground phosphate rock, without the addition of any acids, is particularly affective on slightly acid soils such as are common in the northern part of , New Zealand. COST OF THE RAW MATERIAL. An idea of the reductions made may be gained from reference to the listed prices of 36 per cent, superphosphate, which is now about £6 17s 6d a ton. In the list of July last the price of this class of manure was £7 15s, and that was considerably lower than former war-time rates. In pre-war days the quality sold at about £5 7s 6d. It is still argued that in view of the certain supplies of phosphate rock from the Pacific Islands the prepared manure is costing too much. It is stated that the Waihi Gold Mining Company is able to mine, elevate from deep levels, crush, and elaborately treat quartz at a great deal less than the fertiliser companies, according to their price lists, can crush and treat phosphate rock, a much less difficult material. Critics of the fertiliser companies maintain either that crushing and treating charges are unduly high or that undue profits are being made. The other side of the question is given by an authority, who says the prices of the manufactured manure depend entirely upon the cost of the raw material. He says that the reductions just effected are due to a lowering of the rates for the raw article, the cause being to some extent a lowering of steamer freight rates. He does not deny that the manufacturing companies sell to middlemen at rates offering a fair margin, but points out that the business methods of many farmers make this necessary in the interests of the trade. Many farmers, he says, even those holding shares in a fertiliser company, will not send an order to the firm, but give them, to the first traveller"who comes to their doors. Under such conditions manufacturers, uo be sure of their output, are compelled to sell wholesale to middlemen. As matters stand the middlemen, who often are -firms “carrying farmers on their backs,” are complaining that their margin is not sufficient. MANUFACTURERS AND FARMERS. Another point mentioned was that under present conditions, manufacturers of fertilisers had to give long credits to farmers who bought direct from them. This could not be done for nothing. The farmers would not pay interest on long standing accounts, but the companies had to pay 7 A per cent, upon their overdrafts, which alone made it possible for the farmers to receive this accommodation. Hence prices fixed had to provide for these interest charges and the risk involved —a risk now considered to be uncomfortably high. It is maintained that the fertiliser companies have done their best to bring the prices of their products within the purses of the farmers. Consulted as to the supply of phosphate rock from Ocean and Nauru Islands, Mr. A. F. Ellis, the New Zealand member of the British Phosphate Commission. stated that the reduction in tiie prices of manures followed a reduction in the landed cost of the rock. He mentioned that the output of the rock from the islands for the past season Jiad been a record, amounting, to nearly 390.000 tons, this figure being nearly 48,000 tons- higher than the previous record of 1913. Of the quantity put out in the past season 21,000 tons had come to', New Zealand. It was expected that this season more than double the amount would come to the Dominion. TREATING ROCK AT NAURU. In an article contributed- to the Journal of Agriculture in December, 1920. Mr. Ellis referred to suggestions that had been made that a saving might be effected if works for treating the rock were established on Nauru. The argument that there labor was cheaper he conceded, but he pointed out many difficulties. He showed that the landing of one ton involved as much labor as shipping 10 tons of rock, and that the shipping of manure in bags would be a much more costly business than the shipping of rock, which is done by means of chutes at the end of a cantiliver jetty into baskets in tenders. Recently a vessel of 8900 tons was loaded by this means in about a week, an achievement not possible by any other handling method. Since Mr. Ellis wrote on the subject there ha„s been a great development in fertiliser manufactories in New Zealand, and it is stated that the plants now in operation are able to meet the whole oi the Dominion demand. “The fact is,” said one man, “there is no room for any imported superphosphate now. Obviously we must keep the trade.'.’ Farmers who are not interested in fertiliser companies may find it a cheering thought that the competition among local concerns is growing, ami that, under-cutting by Australia would be a serious matter for them.
I: goes without saying, however, that the demand for manures will increase if the most is to be made of the soil. Another factor is that during the war period, when the cost, of manures was very high, and when some kinds were unprocurable, many farmers were compelled to neglect their land. The result was that many acres were “starved." and much leeway has to be made up in this regard
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Taranaki Daily News, 21 January 1922, Page 10
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1,149PRICES OF MANURES. Taranaki Daily News, 21 January 1922, Page 10
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