WHEAT PRICE

Ashburton Guardian, Volume 70, Issue 119, 4 March 1950, Page 4

WHEAT PRICE

NEXT SEASON’S CROP 10/2 A BUSHEL F. 0.8. (P.A.) WELLINGTON, Mar. 3. The Government’s decision to pay 9s 9d a bushel f.o.r. (equivalent on the average to ' 10s 2d f.0.b.) on a March Tuscan basis for wheat harvested in the 195051 season was announced to-day by the Minister of Industries (Mr C. M. Bowden)

Mr Bowden said that the wheat situation had been closely examined by Cabinet, which had taken note particularly of the progressive decline in the New Zealand wheat acreage, also of the effect of devaluation on the price of imported wheat and of the world wheat supply situation. The conclusion had been reached that an added stimulus to wheat growing in New Zealand was necessary, and accordingly it had been decided .to pay an incentive price for wheat harvested in New Zealand in the 1950-51 season. Since the 1946-47 season the price had been fixed on the basis of cost of production plus a reasonable return to growers, and was now 8s 9d f.o.b. Any further increases in costs of production which might take place would be considered in relation to that figure. Mr Bowden said that the change to an f.o.r. basis was made to encourage the growing of wheat in areas more distant from ports. For most growers the price of 9s 9d f.o.r. would represent a price of about 10s 2d a bushel f.o.b.

“It is hoped,” said Mr Bowden, “that wheatgrowers generally will. respond to this price incentive by substantialy increasing the' acreage and thereby lessen the country’s dependence on imports of high-priced wheat from overseas. that end the Government has made this announcement much earlier in the year than has been' customary.