158 SUGAR 



XV. THE PRICE OF SUGAR DURING THE CONVENTION 

 PERIOD, 1903-1914 



The average cost of production of European raw 

 beetroot sugar, basis 88 per cent., f.o.b. Hamburg, is 

 between 9s. and 10s. per cwt. 



The price from September, 1903, to July, 1904, was 

 below cost of production. A failure of the crop in 1904 

 caused a deficiency of 1,200,000 tons in the supply of 

 sugar, and prices consequently rose. The 1905 crop 

 was a heavy one, and prices fell from 16s. in January, 

 1905, to 11s. in July and 8s. 9d. in August once more 

 below the cost of production. In 1906 prices were 

 below 9s., and for many months far below cost of pro- 

 duction. During 1907 prices ranged between 8s. and 

 10s. In 1908 they ranged between 9s. 6d. and 11s. 3d. 

 The crop of 1909 was a poor one, and prices rose till 

 August, 1910, when they began to fall down to 8s. 9d. 

 in October, remaining below 10s. till March, 1911, 

 when fears of another bad crop, which eventually 

 showed a deficiency of 1,800,000 tons, caused an 

 inevitable and very serious rise. In 1912, prices fell 

 to 9s. and in 1913 below 9s., and ranged between 9s. 

 and 10s. until the war came. 



This is a reply to those who try to make people 

 believe, and to those who so readily do believe, that 

 prices have been high owing to the abolition -of the 

 bounties. They can now see that during the period 

 1903-14 prices were generally below or round about 

 the cost of production. They can also see that, con- 

 sumers, having been compelled by the action of the 

 bounties to be dependent on the bounty-fed area of 

 Europe for their supplies, have to endure high 

 prices whenever there is a deficient beetroot crop. 

 The high prices are, therefore, caused by the bounties, 

 not by their abolition. 



