SELL, OR CONSIGN, OR CO-OPERATE ?

Dominion, Volume 1, Issue 263, 30 July 1908, Page 3

SELL, OR CONSIGN, OR CO-OPERATE ?

, DAIRY FARMERS CONSIDERING . Dairy farmers are thinking hard these times over tlio direction in which prices are likely to go ■ when their butter gets to London by and bye. Thoy'will soon bo in closo 1 touch with tho agents of the buying and consignment firms, and they desire'to know their own minds as to their intentions before that strenuous moment arrives. When, tho remarkable prices of last season were' ruling, it became tho fashion among tho dairy farmers to declare that they would consign for ever in future. .And.this feeling prevailed till quite recently. But by somo devious. processes of reasoning, some of tho i leading lights among the butter men are beginning to wonder whether . the present might not, after all, be just the very time .when they ought , not to consign, but sell. This, is how they look at. the question:— Prices in Britain : now are exceedingly good. The British local output has been small, and although tho imports of butter" in tho last' threo weeks wero 60,000 boxes in oxcoss of thoso .of. the samo period of the year, before, tho prico in Britain is still firm at about 117s. On this basis, therefore, the offers of purchaso by agents ought to be unusually nigh. If they are, we may sell; for, if we consign, who is to say that tho price will not bo down again before our butter roaches London next Decembor ? We'll certainly wait', (say these men) until tho offers , are' really before us before wo'finally decido that :we won't- sell. ' ' ' ■ But will the agents really malto high offers for next December just bccause butter is dear in- July or August? The probabilities are that'the agents. who aro to make offers are in possession of more accurate information as to the probable prices of next season than ,the sturdy, dairy f armors with .whom they will try to drivo bargains. .If they make high offers, that is evidence that in their highly-trained judgments, there are going .to bo big prices next season. Aiid if; that expectation is going to be fulfilled it , will bo best to consign. Oil the other hand, if 'they, expect • prices to bo low, -their oftcrs will bo low too, and in any caso tho consigner stands to gain. Tho great kernel of the. question is, this: Aro. tho. agents going to . lose their hoads'over the present high prices and falsely.guago tho future'? It must bo apparent that it is tho dairy farmer who is tho most likely to.'makp a slip. Howover, if the farmers can really catch tlieso wily agents. tripping, it will bo tlieir turn for an innings anyhow. One point that deserves consideration is the extent to which the factories should reserve a free hand over a portion' of their output for tho purpose of being ablo to share the veryhigli local prices such as ruled last year. Now Zealand factories cannot take advantage of a sudden riso in London,, because they are too far away. But they can take-advantage of a rise on'the local markot provided part °f their output bo freo.; At' tho timo' when the local-prices went up so high .owing to tho. scarcity, of - free butter last summer, it was pointed out in The Domkjion. . That, the local market, to a certain extent, is of more account-than the London market.:

. . That tho local prico nfever falls-so low as tho net price in London;' • .That,the local price goes higher and r&- ; mains high longer t-ha ntho London, price. That, tho general averago local price is always better than the net London price. ' Thati consignment-might, apparently, be to 1 , advantage on modified terms somewhat as follows:— ,• iUp'to about tho end of Novomber: For the whole output. , - .' • ; December: Three-quarters; of'output; • .••'with- option,vof: sending t-ho.:whole.': " . . Janua'ryiaudyFebruary: Half of output, with option of'sending .tho Iwholb. , March'onwards :-A free hand. . • ! : One drawback is .that; thd ! advance .would be: cm a -smaller;, jtho.'-.oiitputj but thero'woukr.' neyer':.be r any -dompiilsion , re 1 - i tain aay'.of tHoibutter: forjtbo, local market' if 1 factories'preferred-to let it'all go home. The scheme may bo difficult or easy of execution. It is entirely a matter for factory directors to.'det'eridino..: ' V . The. romamingipbint 'oxo'reising imiuds ; of butter-,producers is' the.'jco-bperativo marketing schem'e of'the National Dairy Associa-. tion. The schemo as discussed by the meeting at Hawera was that tho factories should send' their .butter through .the Association to 'the, Association's London agent,- who wonld distribute it .among a limited.number of firms' doing business direct with retailers; and that; if the results with any; one firm wero un-.; satisfactory tho,supplies should be transferred. to another. wei;'o. fifty , factoyy chairmen present at tlio'Hawera'meetrng;', aid-five' of them ; decided .to join'mtbe 'scheme... It' is understood the-stipulation is that their decision holds good .only if twenty factories join.-.- Tho.number is still short of twenty, but recently-reported statements of Mr. Harkness show that he is hopeful. This subjcct has somo bearing upon the "sale or con-, signment " problem.The scheme must be completed without very, much delay,in orderthat factories may know what to tell thenagents; and it is believed by somo that the factories that " stand out " will receive good .offers from ..the various agents, who will do their very be-st to show that'their system is better than that of tho National Dairy . Associatioh. ••• . - 1 The air: is full : of these- interesting little; problems. ;