The Crisis in THE BEET INDUSTRY
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How it is Going to Affect the Many Thousands of Hauliers Who Engage in the Cartage of Beet. " S.T.R." Utters a Timely Warning
THE recent announcement concerning the cut in the price of beet will come as a blow to beet hauliers, who are likely to be affected by it as much, and possibly even more in proportion, than are the farmers.
We may remind our readers that we warned them that this was going to happen when, in a long article which appeared in our issue dated January 7th of this year, we dealt generally. with the subject of beet haulage." We pointed out then that there wculd be a diminution in the beet-sugar bounty this year and that one effect of that would be an attempt to squeeze the haulier and persuade him to take uneconomical prices for his transport work.
Briefly, the situation is this. Farmers who last year received 46s. per ton of washed beet will this year receive only 25s. 11d, per ton. The actual reduction in the subsidy is 6s. 6d. per cwt. of sugar. Last year the subsidy was 13s. and that was equivalent to about £2 per ton of beet. For this year's crop the subsidy is to be only 6s. 6d., hence the cut of a pound a ton in the price offered by the factories.
A Further Reduction.
That, however, is not the whole of the reduction. Previously,, beet has been accepted at the standard price if the sugar content amounted to 15 per cent. If the quality was such that the sugar yield was 161 per cent. then an additional 3s. per ton was paid to the farmer and, again, for each additional 1 per cent., a further 3s. 4d. per ton.
Now, however, according to the new offer, the percentage of sugar is to be 161 if the beet is to obtain the standard price and that, in effect, is equal to a further reduction of 3s. per ton for beet which, yielding 151 per cent, of sugar, would last year have been bought at 40s. per ton will this year fetch less than 23s. per ton. Out of this standard rate the farmer has to pay for transport, and the cost of that, according to figures which were published in our issue of August 12th, averages 8s. 6d. per ton, thus reducing the farmer's net receipts to 148. 6d. per ton for the washed beet. That is equivalent to about £7 per acre, which is a low figure for a root crop.
Considering the Views of Farmers, Factories and Hauliers: The question with which we and our readers are intimately concerned is this :—How are the new conditions going to affect the thousands of hauliers who, in the main, are dependent for their living upon what they earn from the haulage of beet? To arrive at some sort of answer to that question we must consider the various ways in which the situation is likely to be met by the principal parties concerned—the farmers and the beetsugar factories.
It is, first of all, up to the farmers either to accept or refuse. If they accept then they will undoubtedly do their utmost to get back as much of their loss as they can from the haulier, by cutting the price of haulage. If they refuse then the sugar factories may attempt to meet them by cutting some of their own profit which, last year, in the more successful factories, was approximately 7s. 6d. per ton of beet. If they do that then both of them will have a direct interest in squeezing the haulier.
The farmers may accept, subject to the factories making themselves responsible for the haulage. If that happens history is likely to repeat itself, for the factories have attempted to tackle that problem on previous occasions, but never with satisfactory results. On the last occasion, as may be remembered, they endeavoured to c tam cut rates by reque: lug the help of haula contractors from areoutside the beet-growl! district.
T h e Commerci Motor took a hand an by publishing figures the cost of haulage an opportune time, was able stiffen the backs of hauliers ther selves to the point of refusing to el their rates. At the same time ti outside help fell very far short 4 expectations and the upshot
that, in the majority of cases, ti previous arrangement, wheret, farmers made their own contraei with hauliers, was again put ini operation.
It is significant that, as we wrii these lines, we are actually recei' lag inquiries from hauliers in di tricts remote from the beet-growth area as to what they should charg for the hire of their vehicles for th haulage of sugar beet.
The Need for Co-operation, Forewarned is forearmed, an these notes are written to direct th attention of beet-haulage cot tractors to the matter, to indicate t them the course which events ar likely to take and to warn ther that the prices which -have bee current of late for beet haulage ar the very minima that they cal accept with profit to themselves.
The problem is one which can b tackled with success if the bee hauliers will get together, agrel upon prices and insist that thosi rates be not cut. Fortunately, thi: is one of those rare examples a goods haulage where it is possibli to combine without there beini much risk of any schemes of pric( maintenance being disturbed by in roads of those not used to the work That was proved, as we have said a couple of years ago when ar attempt to invoke outside aid. was. made with a view to cutting haulage rates.
One thing more. If anyt.lang useful is to be done it must bedont now. S.T.R.