SERIOUS POSITION

Ashburton Guardian, Volume 53, Issue 252, 5 August 1933, Page 2

SERIOUS POSITION

MARKETING OF WHEAT. POSITION OF THE GROWERS. NEED FOR ORGANISATION. (Special to the " Guardian.'*) TIMARU, August 4. "The position is more serious to-day than it has ever been," stated Mr H. F. Nicoll, of Ashburton, a member of the Wheat Purchasing Board, when speaking to members of the Timaru Agricultural and Pastoral Association to-day on the problem of wheat marketing next season. He referred in particular to another expected surplus and the probabilities of price-cutting as a result of the coming fight between the established millers and the new millers. Messrs H. F. Nicoll and Alan Grant, members of the Board, were present by invitation to address members of the association and in the course of his address, Mi* Nicoll emphasised the necessity of wheat-growers forming a strong organisation with which, to withstand the price-cutting "war" which appeared likely to commence next season. Dealing with the problems of finance, Mr Nicoll stated that at one stage the Board had been doubtful as to whether it could continue to pay 3s 4d a bushel to the growers. Due to some excellent sale made, the Board now felt that they could return a credit of a further fivepence a bushel, and in the speaker's opinion there was a,possibility of even sixpence. The. wheat sold to date was 5,796,000 bushels; exported, 711,700 bushels; stored, 929.000 bushels. They still had 255,000 bushels for export, with a surplus on hand of 1,129,241 bushels and still further quantities to come to hand. To-day they had roughly one and a quarter million bushels yet to deal with.

"The probabilities are," stated Mr Nicoll, "that 298,000 acres will be sown in wheat this year, according to the returns the Board has received. With that acreage there is every likelihood of another large surplus. We have six new mills, and one or two waiting to see if protection will be given again next year. If it is, they will start building at once. The established mills are not going to see the new mills come in without putting up a fight. There will be price-cutting in flour which will hit the Board seriously because we can't finance the crop unless the millers are prepared to purchase 75 per cent. pi their requirements by May 1. Failing that we' are left with no one To protect our interests."

To meet the position, continued Mr Nicoll, they must have a strong organisation with a certain amount of capital behind it to protect the wheatgrowers. It was proposed to form an electoral committee of-50 members'who would elect nine directors of the Board, and each grower would have one vote. "The position is very grave," he added, "and there is no doubt about it that the growers must pull together as one body." Replying to a question asking how it was that free millers could pay full prices to farmers, Mr Nicoll asked "When did any free mill pay the farmer full price? What is the full price?" Mr P. Porter stated that the free * millers had stated tnrough the Press that they Avere willing to pay the full price, but they could not do so since the price was fixed by the Wheat Board. Mr Grant: Can auyone give any information about a free mill paying full prices—the name of the milk, and the name of the farmer? Mr Nicoll explained that the free mills did not buy from the.farmer at all. To do so would be a breach of the regulations, for which there would be serious penalties. ■■<■ - Mr Grant then briefly addressed the meeting and urged owners to stand together in their own interests. . ... On the motion of the chairman (Dr. P. R. Woodliouse) the speakers were accorded a hearty vote of thanks.