GRAIN, SEED, PRODUCE

Press, Volume XCIX, Issue 29222, 4 June 1960, Page 16

GRAIN, SEED, PRODUCE

Potato Market Reviewed

In the last month the potato trade has shown a marked firming with North Island buyers particularly active. The shipping season from Lyttelton and Timaru began later than last year but by the end of May had very nearly caught up with the last year’s total to that date. Much of this has been attributed to the stocking up by North Island merchants and large users, such as fish and chip shops, as a precaution against a possible shortage and increased prices later in the year. This position, to some extent, has levelled off in the last week and values to the grower are at a sound level which is fully firm. Local merchants are ’quoting about £26 a ton for Suttons and at Timaru the same variety is being bought at about £27. Preferred whites are priced at about £1 a ton less.

The potato market in New Zealand has a complex structure and supplies from the various growing areas have a dove-tailing effect on the main selling points. Any instability has a wide effect and the market takes a long time to recover.

Commenting on the situation, the chairman of thfe Potato Board (Mr D. B. Annand) said yesterday that the March survey by the board had indicated that supplies should be adequate and the present price was not out of keeping with production costs. Last, year the market had been affected by heavy undergrade supplies in the .North Island sent on consignment, and values to the grower had been at a lower level. *

At the -end of April North Island merchants had said that they had sufficient supplies available there to' last until the end; of the month but within 'the next week had begun buying. This stocking up over and above immediate requirements had involved not only merchants, but principal users. The levelling off bf this increased buying had been reflected in increased supplies of North Island-grown potatoes coming out of “hiding” in the last week, he said. Constant Supply

A constancy of supply and an even, stable price which ensured a reasonable return to the grower were the critical factors influencing the stability of the market. Fluctuations and speculation in the market acted to noone’s benefit in the long run. Mr Annand agreed that any sharp rise in the price of potatoes would be scrutinised closely by both the board and the Government. If there was an “playing ducks and drakes” with the market the board would take steps. “The Government wouldn’t put up with it and it is up to the board to see that the Government doesn’t have to interfere,” he said. In the last week southern potatoes have been quoted at £27- to £37 a ton on the Auckland produce markets, with Rangitikei supplies at £3O tq £36. Strong supplies from Rangitikei were reported and the range of values appears to have firmed slightly in the last week. As a point of interest the prices of Tasmanian potatoes on the Sydney produce market on June 1 were quoted at £2B 16s to £32 8s converted to New Zealand currency. The week before, prices were £32 to £36 a-ton, New Zealand currency. The price of potatoes to the New Zealand consumer, this season is of considerable interest with a General Election in November, and the Government would be likely to show some concern if values rose too high. If, as the Potato Board believes, the crop this year is adequate to meet requirements, a stable market throughout the season, undisturbed by speculation and rumour, is in the best interests of growers and merchants alike.

Quiet Seeds Market Trading in the small seeds market has been very quiet this week although values are firm, merchants reported yesterday. With the International Seed •Association holding its conference in Copenhagen this week, overseas inquiries have been limited. As well as this, overseas buyers are considered to be “stocktaking” after the last month s trading and viewing their future needs •in relation to the prospects for the United Kingdom and Continental harvest. White clover is the only line to show any movement in price and the slight easing of about Id per lb- took place about last Friday and the market since then has been stable. Although one merchant voiced a mild suspicion that Montgomery red clover supplies might be lower, most merchants say that there is sufficient seed available and southern harvests were satisfactory. Cowgrass supplies appear plentiful. Owing to the dry weather less lucerne seed has been harvested in the last two years but this has been balanced to some extent by a reduction in sowings, one merchant said. Some local business has been reported recently at 4s to 4s 3d per lb for certiBed, which is equal to a price to the grower of between 3s 6d to 3s 9d per lb. Some crested dogstail has been bought recently at about 2s 6d per lb to the grower. Oat supplies are fairly limited, although the demand ' at present is not heavy. For chaff, on the other hand, there have been more sellers than buyers and some farmers are reported to be considering threshing their stacks to take advantage of » relatively better price for the oats, particularly white varieties. Wheat sowings are still proceeding but orders have tailed off. 1 Prices to Growers The following prices for small seeds were announced as a guide to growers by the president of the Christchurch Grain, Seed and Produce Merchants' Association (Mr W. J. Bews): — Ryegrass—Mother perennial, 23s 3d per bushel; p.p.. 22s 6d: uncertified, 17s 6d; Mother Hl, 28s; standard. 275. White Clover.—Mother 99/90, 4s Id per lb: p.p., 3s lid; mother 98/90, 3s lid: p.p.. 3s lOd. Cowgrass.—Certified, 2s 6d per lb; uncertified. 2s 3d. Browntop.—Certified, 4s per lb; uncertified, 3s 9d. Montgomery Red Clover. —Certified, 4s per lb: uncertified, 3s. In announcing these prices Mr Bews said that they were those which could be justified by trading conditions, and did not take into account day-to-day fluctuations of a speculative nature.