FALLING PRICES.

Otago Witness, Issue 4039, 11 August 1931, Page 17

FALLING PRICES.

LOWEST INDEX SINCE WAR. INTERESTING BRITISH FIGURES. Interesting figures come from the British Ministry of Agriculture to remind farmers how serious is the state of their industry. The agricultural index number for May fell to 22. which means that the general level of the prices realised for agricultural produce was 22 per cent, above the 1911-13 average for this month. It is the lowest index number recorded since the war. How rapid the fall in values has. been can be judged by a comparison with the indices recorded for the month of Maj- in previous years. In 1930 the May index number averaged 34; in 1921 it was 44. and in 1928 it was 54. Values have been tumbling round the farmer during the last three vears. These index numbers are being quoted before the agricultural wages committees in support of claims made for wage reductions, and certainly they are useful in giving an impartial picture of

the general trend of prices. But it is easy to- attach undue significance to the figures quoted under the particular head.--. They are averages, and do not meessarily apply in individual cases. Allowing for this, they .".re worth study by the many farmers who are at their wits’ end to know what-course to pursue. If they have no other use. these figures show up the brighter spots. Appended is the Ministry’s table of percentage increases in average prices for May as compared with the same month in 1911-13:- —

Such figures tell their own story. Dairying would seem to be holding' its own still. It is, however, possible that the figure given for milk (47) is misleading, because full account has not been taken of the large proportion of milk sales which this year have been made far below the published prices. Unable to make a proper contract, a good many producers are accenting quite unremunerative puces rather than feed the milk to pigs or throw it down the drain. If everyone of them were ensured the full price, milk production could certainly be placed as the most profitable type of farming today- Feeding-stuffs are cheap, costing, 7,0 aver, 2 ge ’, l2 P° r cent - less than in LJll-13, and, though other costs have risen, the margin, on paper, at any rate, would be attractive. UNPROFITABLE CORN.

Growing corn to sell at to-day’s prices cannot be undertaken with any hope of profit. The straw is wanted, but not the g T ai , n ; In some measure it has been practicable for the enterprising man with capital behind him to cut: costs of production. The modern tractor and its im-

plements save time and labour. Fertilisers are no higher in price than they were m 1911-13, indeed, sulphate of am monia and nitrate of soda are considerably cheaper. Against such possible economies a mounting labour bill has to Xr-l et - t \ a 8 es are generally taken to represent at least one-third of the total expenses in the corn-growing districts, and as rates of pay have been generally mainnricos’ of the fall in produce Prices, the tendency has been for labour A ges . -n " f e ‘ gh . more heavily than before in the bill of costs. Potato figure looks good, but potatogrowing is always a gamble. Prices are y ? ar down the next when 'erjone has been encouraged to plant a fV° r a ?', ea " e ’ The high figure of 85 in this table can be discounted. Very May talmerS had any Potatoes to sell 'n

examination of the other figures that live stock, especially sheep a "„ t+ plgs ’ cave maintained their values pretty well. The comparative figures given for store cattle and fat cattle do not. however, endorse the statements of experienced graziers that there has been o-2„? ay V? fattening cattle on the summer r 5, a ‘ SS 'r values for fat cattle ap- '. *11" froj” this table to have been fairlv "ell maintained. There is certainly no money in the winter fattening of bullocks ■ n boxes, winch used to be a maimtay of \ °’7 <> , farming. In this business incidental expenses mount up heavily to-day. ihe summer grazier may not have suffered so severely, but pos.-ibly sufficient allowance has not been made in this table for comparatively high prices which the Midland grazier has to pay for firstffi’anty beasts in the spring. Sheep farmers should not have been o.sing money, those who have had facili- - ies-for running breeding flocks over extensive areas of grazing can have little to complain of in the returns they have obtained. Hurdled flocks on arable ground are more expensive to maintain and less remunerative. While corn prices areaown. the folding of sheep leaves no profit in the subsequent crop. It has been the general experience that tegs bought tor feeding on roots last autumn did not make more than their purchase price when tatted. Pigs are always fluctuating in value, 1 hey have done well lately since the prices of maize and other meals fell.

1929 . 1930 1931 Wheat .. .* May. May. u May 28 Barlev . . . . 34 — 1 10 Oats . . . . 31 —11 —11 Fat cattle .. 90 30 19 Fat sheep .. 63 40 Bacon pige SI 61 21 Pork pigs .. 78 67 33 Dairy cows 0.7 29 24 Store cattle 0 9 28 Store sheep 51 46 28 Store pigs .. SI 108 50 50 28 7 Poultry 65 64 63 Milk . . .. ;> 4 47 Butter 50 23 8 Cheese 81 5 « 09 Potatoes . . — 3 —36 85 Hay .. .. 99 28 —10 Wool .. .. 59 nil —21