GRAIN, SEED AND PRODUCE

Press, Volume XCVI, Issue 28346, 3 August 1957, Page 15

GRAIN, SEED AND PRODUCE

Market Uncertainty Over Potatoes (By Our Commercial Editor) The recent increase in potato shipments to the North Island has been welcomed by merchants, but North Island buyers are still buying carefully. Shipments from Lyttelton in the last two weeks of Ju1y—25,510 sacks—showed an increase of more than 5000 sacks compared with the previous two weeks. The latest figure, however is still well below the rate of shipment maintained from mid-May until the end of June.

The wariness of North Island buyers is attributed to two factors: the existence of stocks of imported potatoes, and the possibility of further imports. The recent imports of Australian potatoes to Auckland and Wellington have not all been sold yet. In his most recent statement on imports, the Minister of Agriculture (Mr K. J. Holyoake) said that no further potatoes would be imported “at present." If it appeared that supplies would be short, further imports “may be considered.’’ At today’s New Zealand wholesale and retail prices, it would pay the North Island merchant to buy some of his potatoes from Australia. Tasmanian potatoes have been selling at auction in Sydney this week at 32s to 34s per cwt. until Thursday, when they fell to 28s to 32s per cwt. Allowing for the difference in the exchange rates of the two currencies to cover transport charges, Tasmanian potatoes could be landed at Auckland at £3O t 6 £34 (N.Z.) a ton, at most—about the price the South Island grower has

been receiving in recent weeks. Auckland Prices South Island potatoes fetched 48s 6d to 49s per cwt. at auction in Auckland on Thursday this week, according to the “New Zealand Herald." A week earlier they fetched 49s per cwt. This price is equal to 5Jd per lb, but, according to information received from other sources this week, retail prices in Auckland have ranged from 7d to 9d per lb. At 7d per lb the retailer is making a gross profit of 33 1-3 per cent., and at 9d he is making 71 per cent. According to standard calculations used in the trade. South Island potatoes bought from the grower at £32 a ton should retell in Auckland about 7d per lb. It is unlikely that the Government will authorise further imports while New Zealand domestic prices remain at their present levels. While some of the North Island merchants think they may yet secure additional permits for imports, however, the demand for South Island potatoes will be slow. It would greatly assist the South Island growers and merchants to clear their stocks if a more definite Government statement that no further imports would be permitted were issued

The Government would naturally want an assurance that adequate stocks of potatoes were held, or remained to be dug, before making such a statement. There are grounds for believing that stocks are adequatae for the likely demand for the rr'-* of the season.

Although the wet season in the South Island has resulted in an abnormal proportion of rejects in many lines offered, a considerable area remains to be dug m the South Island. In addition, the North Island early crops are reported to be looking well, and an increased area has been planted for early digging. Retail prices in the North Island have apparently not fallen as sharply as wholesale prices, and consumer resistance may be restricting sales To sum up, there is little prospect of any increase above present rates m Prices paid to growers this season. Providing no further imports are authorised, most of the South Island’s stocks, in the store and in the ground, should be quitted at prices close to those of recent weeks. F. 0.8. and C.I.F. Under the heading, “London rye-

grass prices weaken," extracts from a Bank of New Zealand produce circular, prepared in London, were printed in this column last week. Claiming that the prices quoted could be misleading to readers because they were "c.lX.’’ > Cashel street merchant this week supplied estimates of the difference between f.o.b. and c.iX prices for various small seeds. For ryegrass, he said, 3b Id a bushel should be allowed, and for white clover 2Jd per lb. Making these deductions, the f.o.b. equivalents of the United Kingdom prices quoted last week are as follows: Ryegrass: mother perennial (72s 6d per cwt, c.i.f., United Kingdom port), 9s lOd a bushel; permanent pasture (70s per cwt. cd.f,). 9s 5d a bushel; Hl mother (65s per cwt. c.iX), 8s 7d a bushel. White clover - Certified mother (325 s per cwt, c.i.f.), 2s Bjd per lb; certified p p. (315 s per cwt. c4X), 2s 7Jd per lb. All ryegrass and white clover prices quoted are those which sellers were prepared (on July 12) to accept. according to the bank’s circular. The market has apparently not altered greatly since that date, and latest reports indicate that a favourable growing season is being experienced in the United Kingdom. The 15 per cent, increase in freight charges which has been forecast would increase freight charges on New Zealand seed, but should not add a full 15 pet cent .to the difference between f.o.b. and c.i.f. charges. As well as actual freight charges, of course, insurance and commissions are included in the difference between f.o.b. and c4J.

Mining GREYMOUTH, August 2. The following were the returns for the month of July from dredges operated by Gold Mines of New Zealand. Ltd.:— Arahura Dredge.—7Bs ounces of bullion. from 185,0*0 yards of material, handled in 527 hours. Kaniere Dredge—l3ol ounces of bullion. from 402.801 yards of material, handled in 558 hours. Bank Holiday in U.K.—All United Kfncdom markets will b® Monday, for the August day.—N.Z.P.A.. London, AiUPuat I- >