PRICES UP.

Auckland Star, Volume LXX, Issue 246, 18 October 1939, Page 8

PRICES UP.

NEW FERTILISERS.

HIGH WAR FREIGHTS.

SUPPLIES FOR DOMINION.

BASIC SEAG- AND PHOSPHATE Sharp increases in the prices of all imported fertilisers are expected to result from the new freight rates and other conditions ruling as a result of the war. The largest increases will be in basic slag, which . is. likely to be nearly 50 per cent dearer than last season, while the rise in African phosphates is likely to be about 35 per cent. For the first time for many years farmers will be asked to pay about £8 a ton for basic slag, a price which compares with £5 17/ for the major portion of last year's shipments, and £5 (5/ the previous year. It is recalled that when the last war broke out the price rose suddenly from £4 10/ in 1914 to £7 10/ in 1915 and £8 10/ in 1016. Shortly after the end of the war the price reached the record level of £14. An additional factor in the position today, in a comparison with that of 25 years ago, is New Zealand's rate of I exchange, which is now 25 per cent I above sterling, thus accentuating any price rises overseas.

Negotiations With Shippers.

Among the causes of the present increases are the depreciation of sterling [ m relation to Belgium currency, Belgium being the chief source of supply of basic slag for this Dominion, a rise in shippmg freights to about £2 a ton, as against slightly over £1 a year ago, and war risk insurance of £4 for every £100 of value, which adds 6/3 a ton to the : price. Competition from other countries for supplies has also had the effect, to some extent, of forcing up the price. .Negotiations with the shippers in Londont have been in progress since the beginning of this month, with a view to obtaining more favourable terms, and are now nearly finalised," said a representative of the fertiliser industry today. 'Similar negotiations have also been undertaken regarding supplies of phosphates and guano." Phosphates and Guano. Indications at present are that t'he i eight charges on phosphates from T Africa, may be almost nn f'l' '■ a ! lt war r ' insurance on these shipments will be £3 per £100 On the basis „f freight the price to farmers is estimated at to I,)/, as against £4 5/ last season, ■out tile figure will .be reduced if freisrht conditions permit. ' In 1915 tJhe price of AOl til African phosphates wa*> £7 trw • f nd gradually advanced to £10 10/ 111 1017, and £14 in 1920. I For Seychelles guano freights will ibe »e largest factor in raising the price by 10/ to 12/ a ton, with quotations generally from £5 to £5 5/. Auckland importations of basic 'last season totalled about 32,000 tons' and yf North Africa*, phosphates a' slightly smaller quantity. It is not known whether shipping space can be secured for quantities approaching these figures this year, but it is thought possible that the higher prices may have j a marked effect in reducing the demand ot farmers. Deliveries are usually made in the late summer and autumn. Sulphur Supplies Limited. The position regarding shipments of iSaum rock phosphate has been affected 'by the Imperial Government's commandeer of a number of the ships which were engaged in the trade, and in arranging new charters higher freight 1 rates may have to 'be paid. Fortunately, 1 all the fertiliser works in New Zealand 1 are at present well stocked with f'i reserves of rock phosphate, hut sulphur 1 stocks for the making of superphosphate are limited. The most im- t porta nt source of supply is Texas, in c the United States, and the difficulty j at t'he moment is to secure ships for < the transport of sulphur. Two ship- ] ments intended for New Zealand have r been diverted since the outbreak of the <■ war.

Higher prices for fertilisers will mean an increase in the costs of production of farmers, a position which may be met in the first instance by some reduction in the quantity used, and will create ail additional problem for the Dominion in its effort to maintain and increase production. Orders booked in •the Auckland province in recent weeks have been subject to prices "being determined later, and at this stage farmers have no general informatioii as to the extent of the rise for various classes of I fertiliser. \