CORNERING THE WHEAT.

Auckland Star, Volume LX, Issue 255, 28 October 1929, Page 4

CORNERING THE WHEAT.

POOL'S FIRST YEAR,

MANY DIFFICULT FACTORS.

In the directors' report of the New Zealand Wheat Growers' Co-op. Association, which held its annual meeting in Christchurch recently, it is stated, inter alia:— No more difficult year than the present could have been selected for the inauguration of the "pool" on account of the following factors operating this season:— (1) Very large carry-over from 1928

harvest. (2) Heavy forward purchases by millers. (3) The rate at which the 1929 crop was harvested. (4) The heavy crop this year, which yielded 8,832.884 bushels. However, these difficulties only serve to show that the policy of co-operation _is capable of maintaining the market despite such adverse conditions.

In order to obviate a recurrence of these difficulties your directors, after very careful consideration, decided to overcome them by:— (1) Shipping a part of the surplus: This was only made possible after negotiations with the shipping companies had resulted in a reduction of freight equal to about 6d per bushel. This concession, together with satisfactory reports in world market conditions from our London agents, made the shipping of wheat a fair and reasonable business risk. (2) Forward selling for the 1930 season: Sufficient sales have been effected to enable the first rush of wheat to be handled direct to buyers. In addition to the foregoing your directors would point out that many growers who sold forward last year have signed contracts with- the "pool." for next season, thus strengthening our position very considerably.