COST PRICE AND COSTS OF PRODUCTION 185 



the first stage of dealing with the great wholesale markets ; and 

 there is no evidence to show that agricultural co-operative associa- 

 tions, even those representing federations of all producers within 

 a country, will in the near future have sufficient organisation and 

 financial strength to get control of the wholesale and distributing 

 trade in the articles that their members are concerned in producing. 

 As things are, and as they will be for some years to come, the com- 

 mercial classes of the cities have the commanding financial strength 

 in the marketing of animal foodstuffs. In any case, if the national 

 co-operative associations of producers became powerful enough to 

 obtain control of the entire system of marketing of their produce 

 within each country, there would still, in the absence of prohibitive 

 tariffs, be the competition of imports from other countries. The 

 tendency is for perishable foodstuffs to be transported over longer 

 distances and with increasing efficiency and cheapness, while the 

 time of international combinations of agricultural co-operative 

 associations seems quite, remote. There is little danger, therefore, 

 that agricultural co-operation will have the power to create price- 

 raising monopolies. On the contrary, the indications at present 

 are distinctly in favour of the conclusion that it will result in a 

 tendency to reduce prices, consequent upon economies in 

 production, transport and sale. 



It has been shown above that the costs of producing and of dis- 

 tributing animal foodstuffs show a general tendency to rise owing 

 to the increased cost of various factors. On the other hand, how- 

 ever, certain developments have arisen that make for a reduction 

 in the final costs, and these, though discussed at various points 

 in the preceding chapters, may be summarised here. 



One of the outstanding causes of the increased costs is the grow- 

 ing limitation of accessible agricultural resources throughout the 

 temperate regions as a whole. Against this, however, may be 

 set, in the first place, the increased effectiveness as producing 

 areas of considerable regions in the temperate zones, that will follow 

 any improvements in the means of transport connecting these 

 regions with the world's markets. In Chapter iv. above, it has 

 been pointed out that such regions exist in particular in Argentina, 

 Australia, Siberia and Canada. It must be allowed, however, that 

 a shortage of capital may hinder the expansion of these works of 

 development for some time to come. Secondly, the opening up 

 of the tropical highlands as pastoral areas, a process that has been 

 proceeding rapidly in South America and elsewhere, will serve to 

 counteract partially the effects of the growing shortage of land in 

 the temperate regions; but here also a shortage of capital may 

 hinder development in the near future. Thirdly, the imports of 

 oil-bearing seeds and nuts into the temperate regions from the 

 tropical lowlands have increased rapidly in volume and promise 

 to continue in the same direction. It is obvious that the trade in 

 these materials, rich in both food-oils and feedstuffs, tends to 



