NEW ZEALAND WHEAT

Press, Volume LXXXVIII, Issue 26745, 31 May 1952, Page 3

NEW ZEALAND WHEAT

WORLD PARITY PRICE URGED

INCENTIVE TO GREATER ACREAGE (From Our Own Reporter) OAMARU. May 30. “The Government is urging farmers to grow more wheat, but at a time of steadily rising costs there should be a price incentive. The Government will obtain the wheat it requires, only if it is prepared to pay a price on the basis of world parity," said Mr W. M. Malcolm, a member of the Electoral College of the Meat Board, al the annual provincial conference of the North Otago branch of Federated Farmers. Mr Malcolm said that under the International Wheat Agreement New Zealand as an importing country had agreed to take 4.000,000 bushels of wheat annually. In addition the Dominion now had to secure about 4,000,000 bushels on the open market. The wheat purchased under the agreement cost about 16s Id (Australian), but if the Government reviewed its policy and paid wheatgrowers the price paid under The international agreement, then' a substantially increased acreage would be sown. The International Wheat Agreement had done much to stabilise the industry, said Mr Malcolm, but the producing parties to the agreement felt that they had not received sufficiently high prices. It was certain that whep the agreement was reviewed there would be a strong demand for a price more in keeping with the costs growers had to meet. “The New Zealand grower is entitled to receive a price based on world parity." said Mr Malcolm, "and I would emphasise that, in the policy adopted by the Government, more than 3,000,000 carcases of lamb have to be exported to secure the 8.000.000 bushels of wheat New Zealand has now to obtain from overseas." Bonus Prospect The following remit was put before the meeting: "That after full consideration of the effects of the International Wheat Agreement, this conference considers that Government policy should be reviewed.” Mr A. J. Hore said he felt that something more than an increase in price was required. Growers had had increases in price previously, but the acreage sown had actually decreased, he said. His plan would give the grower a chance to earn more by extra effort. The grower would be paid a bonus on wheat produced over a certain amount. Mr A. McMillan said that people must have bread. It was also apparent that the wheat could be grown in New Zealand at less cost than that purchased from overseas. He said the only way to secure more wheat was through an increase in price. Talking patriotism would not get more wheat. “There has been much said about the decline of the South Island, its towns and cities," said Mr McMillan, “but it is not to be wondered at when the main industry of the island has been strangled by the policy adopted by the Governments.”

The remit was carried, members agreeing that Mr Hore's plan for an incentive bonus scheme should be followed up.