FARMERS AND FARMING. No. XII.

Waikato Times, Volume XXVI, Issue 2125, 20 February 1886, Page 2 (Supplement)

FARMERS AND FARMING. No. XII.

"Bl'TCtlKK* VM> ArCTIONEhRS."— If pOSaibk> I shall condense into this letter a few figures dealing with the consumption of certain articles of agricultural produce, by the pipu'at'on of the I'iovince of Auckland, giving the prices (ho producers receive, and tlio»e paid by thcconsmncib, thus bringing the ti uc light of statistics to bear upon this matter, and show it up in its true coloms, ea^lly to be comprehended ami understood by all farmeis. The attu.il consumption of agricultural produce per head of the population may be a matter of opinion. However, in this case I shall uso my own judgment. I would, above all things, impress upon the farmers this one point, and I have mentioned it before, v'u., "that it is not a mere nutter of opinion on this thing or on that— but an absolute matter of fact of a 'vast' margin existing between the retail prices paid for, and the actual prices received by the farmer for his produce ; never mind whether it is only lib. of produce or a thousand lbs — this is the point. And now for the proof. First, I take the article " meat," treating it as beef and mutton, and including under these two heads, lamb, veal and pork, but not bacon. The population of Auckland Province is estimated at 120,000 people, that of the towns I place at 90,000. This latter number comprises the consumers, as distinct from the producing farmers, their families and their workmen , who are supposed to be supplied direct from the farm. Taking into consideration the comparatively low prices of beef uud mutton, which induce* people to consume a large proportion of fresh and other meat in thair d.iily diet, I must place the actual weekly consumption per head of the population at 4Jlba, which for 90,000 people gives a total of 405,0001ba. The butchers on an average will pay for this at the rate of two pence per lb, equal to a sum of £3375. This price of two pence per lb includes the over- weight" of meat which id generally allowed for when buying. The retail price of meat, observe it well, I place at 3J pence per lb, which I can fully assure you is well within the mark, even for beef and mutton, without at all considering lamb, pork, etc, which fetch much higher retail rates; 405,0001bs of meat at 3\ pence, equals a sum of £5906 ;or a difference between wholesale and retail of 11 pence per lb, equals £2531 ; or an average percentage difference of 75. Don't imagine this ie all, oh no, there is that mysterious fifth quarter to account for, or in other words the skin and offal. This fifth quarter I calculate as equal to a fifth of the wholesale price, which gives a sum of £675, or another 12 per cent, or a total gross gain of retail over the wholesale price of £3206 or 95 per cent. To put it clearly in another way, suppose a butcher gives £6 for a beast or an equivalent number of sheep, he will sell it retail, including beef and offal, for £11 14s or £5 14s more than ho gave for it. I don't hehitato to think, that you will do otherwise than agree with me, when I assert and prove, " thtsre in something very rotten indeed in the state of Denmark." when such a st«e of affairs i* tolerated by sane producers and consumers. Out of thin pros* profit provision must be made for interest upon capital, ivnfs, insurance, fees, ribks of trade, and expenses of slaughtering, and distribution amongst customers. Ah I endeavoured to point out in a previous letter, the cost of distribution is unnecessarily heavy owing to the business of a district being divided amongst too many retail dealers. Notwithstanding the expensive item, I cannot concede a larger proportion of the grosa gains than three-fifths, or 60 per cent., ov £3 8s fid, leaving 40 per cent, or £2 5a 7d as nett profit, equal to a nett profit of a shade under 38 per cont. upon the £6 which the producing farmer receives. Both the expenses and profits the wholesale and retail butchers may devide as they like. The grand, the startling fact is that a gross gain of £5 14s is made upon an outlay of £6, and a net gain of £2 5s 7d. The total net gain per week by the butchers upon the computed consumption is £1282 10s. To state the gains of the stock auctioneers upon the weekly consumption, we must go another way to work. For the auctioneer obtains his commission, yard feet and interest for the stock consumed by the whole, or nearly so of the 120,000 people of this province, which at 4^ lbs per head per week gives a total of 540,000 lbs, which divided equally between beef and mutton, and taking the sheep at an average of 65lbH each when fat equals 4154 sheep, and each fat beast to average GOOlbs, equals 450 head of stock. In computing the charges on these quantities of animali as stores, we must make allowances for those of them which come from the provinces of Taranaki and Hawke's Bay, and which only pa*s through our •' ftiuuds' " hands when fat. The allowances are 1 50 head of stock off; reducing the 450 to 300, whi'-h are sold an stores. Sheep 654 off. re.'uci itr the 4154 to 3500, sold as stores bv our local men.

A gross percentage of over 6J on £2(500. The fat stock consumed by the 90,000 people is 405,000 lbs, which divided as before and at the same weights gives 3115 and 337 cattle.

A gross percentage of rather under 4, or the two totals equals £302 12s, which is equal to rather over a per cent upon £5972 6s. It will be observed that I haven't made the amount out for a second interest upon £2600 for three months at 2\ per cent., which is £65. Just abovo I have mentioned a 5 per crnt. interest upon the total amounts realised for the store nnd fat cattle. Don't for one moment run away with the idea that this ia the whole gain of the auctioneer. From the capitil point of view it is. But in thp matter of eomniicaion and yard fee* there is no such thing as capital entering into the transaction. All that our friends have to do for this handsome pay is to get on to their le^s and ask the suriounding company to make bidf. There are the auction yards and a few men to pay. These expenses are not by any means heavy. Hence we must conclude that most of the interest, commission, &c, finds its way into the pockets of the auctioneers. There is one final point, of which I have been told a few times, but of which, personally, I cannot write positively. It is that at the large sheep fairs a five per cent, commi-fcion is charged. If this is bo, probably, as a further privilege, enhanced yard fees and interest upon bills are also charged by the auctioneer and paid by that "unhappy man," tho farmer. Ut Pkosim.

Mrs Sinithson (who flatters herself upon her youthful appearance)— " That young lady over there is my daughter, Mr Jones; would you believe it ?" Jones (looking m the wrong direction)—" Your danghter I Is it possible ? I should have guessed she was your sister." Mrs Smithwn— " Not the lady you are looking at, Mr Jons»| »h« )* my mother." Jone*-" Oh I"

1115 sheep at 2d per lb, 10s lOd each, £1687 6s, com. 3*% . . 54 16 1115 sheep at Id each, yard fees 12 19 137 head of cattle at 100s each, £1685, at com. 3J% . ... 54 15 137 head of cattle at 6d each yard 8 8 Total 131 0 .. 131 0

£ s d. $500 «toro sheep sold at 8s each, £1400, commission at 3£% .. 45 10 0 1500 store sheep, at Id each for yard fees 14 12 0 Sills of exchange for 3 months for £1400 at 2',% 35 0 0 (00 head of cattle, at £4 each, £1200, com. 3+% 39 0 0 100 head of cattle at Gd each for yard fees 7 10 0 Sills of exchange for 3 months for £1200 at 2J% 30 0 0 Tnfcn.l 171 12 0