THE CEREAL CROPS

Ashburton Guardian, Volume XLV, Issue 10337, 26 February 1925, Page 2

THE CEREAL CROPS

ESTIMATED SHORTAGES.

FARMERS' UNION DISCUSSION

CHRIBTCHURCH, This Day. The Agricultural Committee reported! as follows to the meeting of the North Canterbury branch of the N.Z. Farmers Union yesterday. (1) That after carefully considering the reports from the various districts, the committee estimates the shortage of wheat at 2,000,000 bushels. (2) That in view of the price of flour' being raised to £l9 per ton, and probable substantial increases in prices of bran and pollard, wheat is to-day worth not less than 7s per bushel on trucks. With regard to oats, the committee reported: That information had been collected from Southland, Otago, North Otago, South Canterbury, mid-Canter-bury and the branches, and it discloses the fact that there will be a substantial shortage of white oats, particularly oats that will grade, which must affect the price of oats of all kinds. Reports had been received from the North Island that bright chaff would be in short supply. Mr W. W. Mulholland (Darfield), in moving the adoption of the report, said the information had been collected carefully and from a wide area. In putting the shortage at 2,000,000 bushels they had reckoned on an average yield of 32 bushels per acre, which he thought a very liberal estimate. The committee considered 7s per bushel as a reasonable price to expect for wheat. From a farmer's point of view the present system of millers fixing the price of wheat was most unsatisfactory. It was a ridiculous procedure to jump the price of wheat about in accordance' with che variations in the flour market in Australia. The market for wheat this season was not free, as the millers had appointed a price-fixing committee, who also fixed the amount of wheat each miller could buy. The farmers had neglected to take advantage of haying a say in the fixing of prices. ■ One thing the fanners should do during the ensuing 12 months was to have some organisation which could have an equal say with the millers as to what the price of their produce was to be. The position regarding the white oat crops of Otago was not good, and in Southland the estimated returns were 40 bushels per acre, compared with 43 bushels last year. There appeared to be &< good supply of Algerians. In reply to the president. Mr Carpenter said the yields on the plains were good, but on the downs the returns showed a decrease of between 20 and 30 per cent, on normal years. Other members expressed the opinion that 30 bushels of wheat and 45 of oats would be the top< yields over the whole North Canterbury district. Mr J. Brown (oiid-Canterbury) said the farmers in his district were prepared to put their hands into their pockets in order to have collected reliable information on which they could base the prices they should ask for their produce.

Mr VV. A. Banks (Rangiora) said the millers were playing their old game of bluff. They had •» supply sufficient for three months and consequently down came the price. Australia was the only country which had a surplus of wheat, and her surplus would, no doubt, be sent out to the world's markets where the best prices were offering. He thought the price of wheat would be much higher than 7s later on, and those farmers who held on would undoubtedly reap the benefit. He considered that the shortage in New Zealand would be nearer 3,000,000 than 2,000,000 bushels.

Mr J. D. Hall (Hororata) said it was very interesting to hear the average estimated yields. There was going to be a substantial shortage. The Press had published that the shortage would be half a million bushels, but they could see for themselves that it was going to be very much greater. The district from North Otago upwards i showed less than an average yield, and the area in crop was considerably below the average. Neither the grower nor the milieu- could carry on without a certain profit. There was combination among the millers. Among the ■farmers there was competition, but no combination, which was absolutely essential for success. If a man could hold his wheat till he got 7s he would benefit himself, and if the price remained at 7s the other growers would benefit. He thought if they held on to their, wheat they would get the 7s. The president then read a letter from the secretary of the North Otago branch indicating that the oat crops were a failure, the grain being little better than shells.

The report was adopted. On the motion of Mr Carpenter, it was decided that the whole question of handling and marketing all cereals should be referred to the Argicultural Committee for a report.