WORLD WHEAT

Ashburton Guardian, Volume 61, Issue 43, 30 November 1940, Page 3

WORLD WHEAT

SOME HEAVY SURPLUSES SHOWN REPERCUSSION PREDICTED (Special to the “ Guardian.”) CHRISTCHURCH, This Day. The world wheat situation has become so serious that some of the major producing countries, particularly Canada and Australia, may be forced to encourage lines of production that will compete, ivith the primary exports of Ncav Zealand, according to Mr H. F. Nicoll, avlio warned members of the electoral committee of United Wheatgrowers (N.Z.) yesterday that the consequences might be far-reaching for this country. Mr Nicoll urged the development of products here that could be readily sold overseas.

“World wheat prospects are anytiling but bright, and avc are fortunate in having complete protection in the form of an embargo on importations and a fixed price,” said Mr Nicoll. “Australian Avheatgroivers have been badly hit both by the Avar and the huge surplus production in other exporting countries. On top of this, Australian groAvers have had to suffer one of the Avorst droughts in history. Last year’s production was 210,000,000 bushels, Avliile this year for about the same area, only about 80,000,000 bushels Avill be produced. In many parts of NeAv South Wales the yield is estimated to be only three to five Imshels an acre, and much is not worth harvesting. In spite of this low yield, Australia will still have on/her hands much more wheat than she can find a market for.

“A scheme has just been propounded in Australia to increase tho price to growers to 3s lOd a bushel f.o.b. from this year’s estimated price of 3s 2d. Tho proposed special loan to be paid to Australian, Avheatgroivers by the Commonwealth Government amounts to £2,770,000. Reduction! of their Avheat acreage will mean that Australia Avill become a greater competitor of ours in the lamb and dairy produce market, not to mention pig meat Avhicli Australian wheatgrowers are being urged to produce Avitli their surplus grain.

‘Canada too may be forced to explore other fields of primary production competing with ours in the United Kingdom market. Because of the shorter sea journey and the increasing dearth of shipping, Great Britain is being compelled to draw her supplies from the nearest source and the most recent pronouncement within the last few days in this respect is tho purchase of 30,090 tons of meat from the Argentine. “I mention these facts because rhey must be faced, and the effect on opr farm economy must be far reaching. We must set ourselves to develop those products which can be readily sold overseas. A case in point is the neAV linen flax industry. Another is the production of seeds and such crops as peas. At the same time Ave must , ( see bo it that all the ivheat and feeding stuffs required in New Zealand are produced here, both for our own profit and to save valuable, shipping space. Also it always has to be. remembered that in the event of a real shortage of wheat in the Dominion Ave should be left entirely at the mercy of othei countries, both, as regards supplies and price.” /