THE PRICE OF FLOUR.

Ashburton Guardian, Volume XLVI, Issue 10704, 31 March 1926, Page 6

THE PRICE OF FLOUR.

'COMPARISON WITH AUSTRALIA.

CHRISTCHURCH, This Day. In the controversy that has taken j>lace over the wheat question mention ihas often heen made of the fact that the Australian miller apparently can produce flour much cheaper than can the New Zealand miller. From this It has been argued that the New Zealand miller could give the grower more for his wheat, continue to sell flour at the present price, and 1 still make a good profit. . • i i ' However, according to a miller who was interviewed yesterday, the New Zealand millers are producing flour practically as cheaply as the Australian millers, whilst in each case the profits are about the same. He said that the latest number of the " Australasian" stated that the price of flour charged by the Victorian Mill Owners' Association, was £l3 15s a ton, cash on delivery, for a minimum quantity of 50 bags. . The Australian miller paid 6s ;l§d a bushel for his wheat, while the New Zealand miller paid, on an average, 6s 9Jd, or 8d a bushel more. This -meant that the New Zealand miller Tiad to pay £1 12s a ton more for the wheat necessary to make a ton of flour itkan the Australian miller. In Australia wheat was sold "sacks in," while in New Zealand it was sold "sacks extra." This meant an addition of £1 3s 9d on the wheat necessary to make a ton of flour. In Australia, if millers did not receive = cash on" delivery for their flour and had to book it, they charged another 7s 6d a ton. In New Zealand practically all flour was booked, and the purchaser was given 2fd per cent, discount provided the flour was paid for within about 50 days. For interest on the money for 50 days 2s 6d a ton could be allowed. In his opinion, therefore, the following had to be added to the price of Australian flour before comparing it with" the price of New Zealand : —Difference between the price of Australian and New Zealand wheat at •8d a bushel,. £1 12s; allowance for sacks, £1 3s 9d; extra charge for Australian . flour if booked, 7s 6d; 2J- per cent, discount allowed by the New Zealand millers even if the flour is booked, 9s; interest for the 50 days allowed in New Zealand for nayment, 2s 6d. This was a total of £3 14s 9d, and when added to £l3 15s it made the price of Australian flour £l7 9s 9d as compared with £lB, the price of New Zealand flour. Another point to be remembered was that the Australian mills were generally larger than those in New Zealand, consequently their overhead charges were proportionately less. L