GRAIN, SEED AND PRODUCE

Press, Volume XCIII, Issue 27990, 9 June 1956, Page 14

GRAIN, SEED AND PRODUCE

GOVERNMENT TENDERS AWAITED (By Our Commercial Editor.)

Government tenders for the supply of various small seeds are expected to be called very soon. The Government requires large quantities of seeds for sowing programmes throughout the country each year, and in recent years the breaking-in of big tracts of country for land settlement schemes has increased these requirements. In early June last year. Government orders were placed for the following Quantities of small seeds: perennial ryeerass, 15,000 bushels; Italian, 3000 bushels: cocksfoot, 25 tons; white clover, 26 tons; cowgrass. 11 tons: sub. clover, six tons; crested dogstail. 15 tons; and paspalum. three tons. This was the second Government tender called last season, but so far no tenders have been called this winter. When the quantities required by the Government this year are announced —and no great change is expected—there will be keen competition among merchants to secure contracts. Last year the farmer was getting 40s a bushel for certified perennial mother ryeerass. compared with today’s price of 15s 6d. Prices for ryegrass, in particular. have been so depressed this year that many growers have held their crop in the hope of better prices later. This may eventuate after the Government purchases have reduced stocks held in the trade, though this is by no means a certainty. Many firms have found their stocks too high and their cash reserves too low since the credit squeeze became effective, and some of them may well be counting on a successful tender for a Government contract to improve their cash position. If the successful tenderers fall into this category the small seeds market will not be appreciably affected by the reduction of stocks. Potato Prospects Potato growers and merchants await with interest the Government’s announcement of the guaranteed price to be offered to the grower next season. The opinion in the trade is that the price will need to be substantial to affect appreciably the acreage sown. “When a grower has to pay £6O or £7O a ton for seed he thinks twice about growing potatoes if he can switch to wheat or something else,” said one merchant yesterday. Some North Island merchants are still finding potatoes hard to quit at current prices, but local growers, confident of the prospects over the next few months, are raising their selling offers. Broken contracts between growers and merchants have been frequent this season, as farmers have realised that since they made their contracts the market has risen; the number of unacceptable samples off°red to merchants has also been suspiciously high.

Quotations to Farmers Prices quoted by merchants this week were as follows:

White Clover (m.d.)—Mother, 5s 6d per lb; p.p., 5s 3d; uncertified, ss. Ryegrass (m.d.)—Certified perennial 15s 6d a bushel; P.P., 15s; mother. 15sstandard, 14s 6d; Italian, mother, 15s. standard, 14s. (Ryegrass prices are sub ject to 93/90 minimum.) Browntop.—ss per lb (dressed). Oats.—C irtons, 8s 6d to 9s a bushel; Algerians, 6s to 6s 6d; Duns, 8s to 10s; Blacks, 7s 6d to "3 6d (Prices vary according to quality'.) Cocksfoot.—3s per lb for good quality farmers’ dressed seer’. Chaff.—£l6 IQs . ton.

Onions.—£23 16s a ton (nominal), on trucks, bags extra. Partridge Feas.—No. 1,19 s a bushel, f.a.q., 18s a bushel Lupins.—l7s 6d a bushel. Clover (new season’s).—ls 8d per Table Potatoes.—£s2 to £57.