BUTTER AND WHEAT

Press, Volume LXXV, Issue 22883, 2 December 1939, Page 8

BUTTER AND WHEAT

PLIGHT OF AUSTRALIAN GROWERS COMPULSORY REDUCTION OF ACREAGE The position of .the New Zealand dairyman finds, something of a parallel in that of the Australian wheatgrower. The principal difference is that in New Zealand —so far, at all events—the guaranteed price for our dairy produce will save the Government any payment. The Federal Government expects that at. the least it will lose £5,000,000 by dealing in the growers’ wheat. This loss is based on a price which the Government considers its maximum effort. To secure a price which is considered sufficient to ensure the farmers a payable price (3s 6d to 3s lOd on rail), preliminary investigations show • that approximately £12,000,000 would be required. The amount of wheat the British Government is prepared to buy is uncertain. Fears are entertained that only 50,000,000 bushels of the 110.000,000 available for export might be taken. The financing of the 60,000.000 bushels unwanted balance would place a terrific strain on the country’s finances, and possibly leave on ,the Government’s hands, when next harvest comes in, some millions of bushels of wheat, subject to depreciation. The Prime Minister has stated that the Government’s offer is unusually generous, as the first advance, the second instalment of which will be made next February, represents 2s 4Jd a bushel net. Interference in the world's shipping (which apparently has been the cause of the British reduction of Australian purchases) has produced an acute position regarding marketing. In the circumstances, a guarantee by the Government of £20,000,000, irrespective of sale, represented the most generous proposition regarding wheat ever made in the history of Australia. In the meantime, meetings of indignant wheatgrowers are being held throughout the states—in Victoria and West Australia particularly—a policy of non-delivery- of wheat being generally advocated. The future appears to hold little prospect of escape of Australia losing its position as a great wheatgrowing nation. A substantial reduction in the area is considered certain to be imposed in 1940, to avoid accumulation of surpluses for which there will be no sale during the war. Many large European importing nations in former years had become practically self-supporting before the war, and within a year or two of the ertd of the conflict this position is likely to recur. In any case, the United States, Argentina, Canada, and India, much nearer the sources of consumption than Australia, and heavy exporters, are likely to be the main sources of supply to the United Kingdom while the war lasts. At the present time, thisd Federal; j Government expects that*little more" than half the "crop now being taken off will be sold, and the t£5;000,000 loss mentioned is without taking the flour tax into consideration, this tax being a direct grant to the industry. Most of the marginal lands, it is considered, will probably go out of production after this season, because of proposed crop limitations, and

a form of licensing may be introduced to regulate other sowing. Preliminary investigations are now being made, it is learned, to .ascertain the most efficient means of controlling crops. The alternative methods most likely to be adopted are either the Federal Government’s war-time emergency powers, or some arrangement with the stcitss* The problem of the New Zealand dairyman seenis easier to solve than that of the Australian; wheatgrower. The serious aspect in any comparison between the two countries is that in Australia it has: been decided to reduce the wheat acreage. It would be disastrous if force of circumstances encouraged such a policy in New Zealand, particularly when butter is so .scarce in England that , it is being rationed in such a meagre allowance as 4oz weekly for each individual. Rabbitskins 1 have been exported in larger number this year than last. For the nine months ending, September 30, the total was 8,761,539, as against 7,019,705, an increase approximately of 1,750,000. ‘ The value, however, did not show such a corresponding increase, being £182,445, compared with £174,432 for the nine months of the previous year. The export of opossum skins showed a mVked decline. The total exported in the nine months dropped from 49,347 last.year to 7462 ip the current year. ■