WHEAT AND FLOUR

Ashburton Guardian, Volume 56, Issue 101, 10 February 1936, Page 5

WHEAT AND FLOUR

NEW SCHEDULE OF PRICES. OPINIONS IN ASHBURTON. FARMERS' GENERALLY SATISFIED General satisfaction with the new schedule of prices for wheat and flour as set out in the Hon. D. G. Sullivan’s statement to-day was expressed by farmers in Ashburton to-day, though they reserved full endorsement of the statement till they have had sufficient time to analyse the position. It is felt that one of the chief phases of the new order of affairs is that which prohibits the importation of flour from Australia, a move that farmers’ organisations have been endeavouring in vain to bring about for years. It is felt, too, that the North Island merchants and consumers will be appeased, the wheat and flour position in the past having created many unfortunate differences between the two Islands. Several farmers this morning told a “Guardian” reporter that they were not yet in a position to say how the increased wages rates would affect them. The wheat price should, they said, be satisfactory to most growers, but at the same time .wages were being increased, hai'vesters being given 6d an hour more than the ruling rate at the present time. Then, it was pointed out, the County carriers had fixed new rates for the transport of farm produce, rates that were an increase, on previous payments the farmers were called on to make. Summing up his view of the position as he saw it after his first reading,of the Minister’s statement, a farmer said, “It is a question whether the increase we will get for the wheat will not be absorbed by the increased wages and transport rates.”

Views of Merchants. “It is satisfactory that an agreement has been reached which should give fair values to the farmer, fair profits to the miller and baker, as well as giving the consumer his bread at a reasonable price,” said an Ashburton merchant. “The Minister for Industries and Commerce (the Hon. D. G. Sullivan) must be congratulated on liis courageous attempt on. a question that lias been more or less unsatisfactory to the three parties for the last few years, and that farmers can be assured of a good price for this season, together with excellent yields, means that Canterbury, which is the biggest wheatproducing area in New Zealand, will be able to plan for a satisfactory area each year with every confidence. “There is a risk, however, that through the price of wheat being above other produce lines it may cause a considerable area to be sown over the requirements. “This would not embarrass the position for one year alone, but if it should happen that two big wheat seasons followed in succession, making it necessary to export at the world’s parity, which is lower than the New Zealand pi'ice, the farmers in the long run would' get a smaller return than that fixed for Tuscan, which is 4s S)d f.o.b. Lyttelton. However, the 4s 9d is the suggested price, I presume, to the miller, and the growers’ value has yet to be fixed, possibly at Id less. In any case the advance price will lower until tlie whole of the wheat is marketed, and the bonus will then lie available as in other yeais, “No one in the industry can object to the agreement. Later it may be proved that it has weaknesses, but there, again, a scheme such as this is hound to have criticism; but at the same time it can be considered that the fixation for the producer, the miller and the consumer is about the most satisfactory thing that has been completed since an attempt was made to give this industry support. Complete protection from the import of outside flour is also a safe thing, as the mills here are better employed gristing, whereas if flour is imported it would cause these concerns to close down temporarily.” “A Bold Scheme.” A grain merchant in Ashburton said: “Personally I am somewhat diffident about our new Government’s’platform of guaranteed prices. However, in the suggested scheme there are some commendable points. The grower is to get an increased price (decidedly all to the good), the miller and baker a working profit, which should obviate the continuous irritation of price cutting, but it will be interesting to see how the scheme will work when a surplus or a shortage occurs. It will be the means of our Auckland and North Island friends realising that Canterbury is still a portion of New Zealand. “There is no doubt that tlie Dominion should be self-supporting as far as our requirements of wheat are concerned, and I am patriotic enough to think that we can hold our own in the quality of flour we can manufacture from our New Zealand wheat compared with the imported article. “I must congratulate the Minister of Industries and Commerce on his hold scheme, and sincerely trust that when the details are finalised it will prove workable and helpful to all concerned.”

A FARMER’S POINT OF VIEW. MANY GOOD POINTS. “I think that the project has many good points,” said Mr J. Carr, of Methven. “It is a planned marketing scheme which seems to be the policy of the present age—while it can be applied quite easily to the wheat question, when yoii apply it; as the Government appears to have the intention of doing, to commodities which have to find a market overseas. In it the proposed control of the wheat industry practically takes it out of the hands of wheatgrowers, millers and bakers as far as priceVfixing is concerned, which function is taken over by the Government. It is somewhat difficult to judge liow it will work out in practice, but at present, on the information given, it seems that the subsidy which the growers gave to the flourmillers of 15s a ton for flour consumed in the Nortlr Island lias been discontinued, and another lid from the pockets of the millers, making a total of 4d a bushel, has been added to it for the

benefit- cf the growers, who in turn are expected to hand over the major part of it to the threshing mills, harvesters and transport people. For myself, I should have preferred to have seen the wages of the permanent farm employees raised rather than it given to tho casual workers, who have come into /the industry, just at the difficult period of tho year, because there is no doubt that, speaking generally, farm employees have not been overpaid for some years. BAKERS TO HOLD MEETING. Ashburton bakers are to hold a meeting this evening to discuss the rise in the price of flour, and in the meantime were not prepared to make any statement. The opinion was generally expressed, however, that tlie step was one which had to come, and had been expected for some time. In some quarters there were feelings of surprise that the prices of flour were not higher. POSITION OF THE MILLERS. FAIRNESS OF THE ARRANGEMENT OAMARU, This Day. Interviewed this morning, Mr R. K. Ireland (chairman of Distributors, Ltd.) said he considered the idea oi : the Wheat Committee taking oyer the control a good one, as all the mills, including those at Auckland, wolild be brought into the scheme. So far as Distributors, Ltd., was concerned, it goes out. Its agreement with the millers expired at the end of February. Negotiations liad been proceeding for an extension of the agree- . ment for 12 months, hut these would cease. Mr Ireland said he considered that the Government had endeavoured to ho fair to the millers, at the same time looking after other interests, and though the millers’ profits were limited to a narrow margin, he was quite sure the new scheme would work. The sliding scale of duties was all right as far as it went, but the full benefit was not derived from it owing to the conflict of interests in the Dominion. MINIMUM PRICE OF BREAD. WELLINGTON BAKER’S VIEWPOINT. WELLINGTON, This Day. The view that the prices of bread fixed by the Government would be the minimum and not the maximum was expressed to-day by Mr Kellow (president of the "Wellington Master Bakers’ Union). If tlie prices were the maximum, lie said, it would lie impossible for better-class bakers to operate.