SHALL WHEAT GROWERS COMBINE?

Dominion, Volume 1, Issue 280, 19 August 1908, Page 3

SHALL WHEAT GROWERS COMBINE?

* A SYDNEY SUGGESTION. ■' It would bo almost impossible (says, tho "Sydney Morning Herald') to persuado tho bulk or our • wheat-growers that thoy aro not too much at the mercy of tho buyers or'that they, receive full value, for their produce. It is an ancient feeling that lias not weakened, with age. Nor is- tho knowledge of tho "honourable understanding" shown to exist, among wheat-buyers in South Australia, and .tfie latest agreement among tho wheat-buyers' associations,; of which there is considerable suspicion as to tho real iiitent, calculated to allay this (notion. Certainly there was no evidence given beforo. tho Adelaide Wheat Commission, in tho courso of its inquiry in this State, as to the existence of any understanding between local buyers. In fact, the evidence was the, other way, and one witness at least considered that growers benefited by a competition that had proved ruinous to some buyers. , There certainly are firms ' that strongly regret ever touching wheat and who have found .it a bad investment. '■. !' That there is considerable speculation in "wheat.is undeniable, but whether the grower benefits is a moot , point. Individually growers might benefit at times, but the trade generally has a .knack of getting back on the producer. As far as the growers aro concerned, experience' in most centres finds a complete unanimity amongst buying agents as to pripe. This may be tho, honest reflex of the London market cut down' to the,finest point, but tho average grower docs not think so. In any caso he is aware that if there have been,heavy losses among wheat-buyers as the result of rash .speculation or mistaken calculations, he is also' aware that fortunes have beon made, the same business. •In any case it' is natural that tho grower should consider the possibilities of' co-opera-tions The butter industry alone teaches a lesson that cannot-pass unheeded. Of its success' there can be no doubt, "and at the present time we find ,a tendency to extend this system of-'co-operation from the farm and factory to the retail shop in England. This indeed is already practically being done by the western district factories in Victoria and the National Association of New Zealand, and there is tr.llc of' still further combination, until it is not impossible to forecast an-intelligent co-operation, that will do away entirely .'with the middleman-and ctntrol the export- butter' industry of P ustralasia. As far as it has gone co-operation has resulted in: an immense'gain to the dairy farmer. Why not to the wheat farmer?. . Pitfalls. '' Commercial enterprise cannot at any timo bri treated'lightly, and this would bo a commercial ' enterprise. purely : and simply." There' is no-special, virtue that protects co-opera-' tive movements against the pitfalls of com-, merce; they fequir,o ,: .the samo skill in "administration ■as the profit-making private concern. But well managed they' represent; a great saving to'the .producor, and therefore merit full consideration.' ;- ■ ' It does not' follow that the initial step should be the co-operation of the whole or a majority of the wheat-growers.' In fact,' there may be a, danger in . magnitude. I 1 is always wisest to : grow.' slowly but surely. Success at first will ensure a healthy growth. Co-operation ; in this connection has a.lready a past failure to contend against, and that must counsel caution. Nevertheless; the scheme should'be worth trying, for the presence in the market of a co-oporative move-, ment would be a splendid protection against any combination amongst buyers to unduly depress the buying figure, and would give the. growor an excellentiopportunity to learn whether he is-receiving a fair price fiom pri-, vate entorprise.L At-the same-time it must not be, forgotten that" thd* element of speculation mustibe kept entirely out'of co-opera-tive .business; that the movement- vill have strong and determined opposition.from thbse whose interests are threatened; and that careful, faithful management will; be: required,' not ; only at' this' end but in' London also/• These ; considerations kept in view, tho'movement should succeed, and if'success is igained'such co-operation would be a great boon to the country; providing, of course, that the aim is to simply secure a'fair return to the grower, while saving needless expense, and not to endeavour to exploit the local consumer by means of a wholesale union of growers.. ■'