Grain, Seeds, Produce Potato Prices Below Board Guarantee

Press, Volume C, Issue 29536, 10 June 1961, Page 17

Grain, Seeds, Produce Potato Prices Below Board Guarantee

' With potato shipments to L the North Island this year well below normal and increased yields reported in ■ growing districts, large stocks , are held by farmers and the ‘ market level is very low. Present returns to the grower do not compare favourably with the guaranteed price and demand is limited. Unless a big outlet can be found on the Australian market—where supplies are short and prices this week are quoted up to £A7O a ton wholesale—the New Zealand Potato Board faces the prospect of heavy claims tor surplus potatoes at the end of the season. The guaranteed price at present for surplus^potatoes grown under contract is £l5 in the South Island on the farm for King Edward and Suttons. £l4 for Chippewa, Sebago. and Katahdin. £l3 for Dakotas and £l2 for other varieties This is based on the Arran Chief variety at £l2 a ton which meets a lower demand so that the higher prices represent a premium for preferred varieties. This figure of £l2 a ton calculated on basic production costs amounting to £8 Ils 6d, extra cost of seed £l, cartage costs £1 7s 6d and incentive payment of £1 Is The guaranteed price has decreased since 1956-57, when after the previous year’s considerable shortage and the importation of 4000 tons from overseas, the price was fixed at £l7. Prices to the grower at present in Canterbury, including Timaru, are being quoted up to £l7 f.o.b. a ton for first grade Suttons, with sales being made at lower figures. Top quality Chippewas in cases are making £l6, with down to £l3 to £l4 being offered for less preferred lines. At these prices the grower is receiving less than the guaranteed price. To get his potatoes f.0.b., Lyttelton, the grower incurs charges amounting to about £7 10s a ton. Fifteen sacks at about 2s 9d each—surplus assessment can be made loose in a pit—the Potato Board levy of 255. grading on the farm at about 40s. railage to port at about 35s—this varies from 45s at Methven to about 17s at Belfast—transport from farm to railhead at 10s to 15s and half the charge of port inspection which comes to about 3s. are an indication of the costs involved. Against this, however, the farmer has already his production costs and the sack charges as well to meet before the potatoes are sold. As the contracts do not mature until November 3. payments on assessed potatoes held at that date would not be received until December. Stored potatoes would also lose weight in that time. Allowing £2 a ton for loss In weight and interest charges for nearly six months the net return to the grower on first grade Suttons is £3 to £4 a ton below the guaranteed price. A feeling lias been expressed among some growers that if the claims for surplus potatoes at the end of the season greatly exceed the boards funds the Government may not back an overdraft for the balance and the pay-out would be consequently reduced In 1958-59 when the < guaranteed price for Arran Chief was £l3—£l higher than at present—6Bs9 tons 1 were declared surplus at the

3 end of the season and the r board paid out £93.544 to - growers. The board’s aci cumulated funds at Noverns ber 30. 1960. stood at £193,146 s and are expected to increase througlh levies on sales this ’ year to £275.000 ; Asked for his comments on - the guaranteed price this 5 year in relation to a potenti- • ally heavy surplus, the chair- ; man of the Potato Board (Mr ’ D B. Annand) said there ; was no question of it being 1 decreased. 1 _ "The contract is written, signed, binding and irrevoc- ; able and the fund behind the scheme is backed by the Consolidated Fund of this country’.” he said. The scheme existed to en- ' sure that the consumer received an adequate supply of good potatoes and the guaranteed price under con- ' tract was the grower’s protection in times of suiplus, Mr Annand said. Mr Annand agreed that in the event of the board need--1 ing an overdraft to meet claims it would probably be expected that the levy on sales would have to be raised to its former level of 30s a ton. This would be necessary to build the fund up again as quickly as possible. Some Wheat Flooded On the heavier land In Canterbury there have been reports of wheat crops being flooded and re-sowings will *? e needed, but, generally, the effects of the rain were to make a further delay in sowings. Although much more wheat could have been sown up until last week, many farmers have held off planting to avoid heavy aph’d infestation which caused so much yellow virus disease last season. In Mid-Canter-bury the delay in potato digging has affected sowings of wheat intended as a subsequent crop. In most areas, however the ground has dried out again reas ably well and sowings have resumed but the heavier soils still need another week. If there is further rain there may be an increase in spring sown wheat on the heavier ground. Small seeds trading is still " ’ he , tJoJdrumns with very Mie business being done A few more Inquiries are being received but price levels are still purely nominal. ’ Merchants say that the the Seed trad <‘ W rth the Northern Hemisphere last year was not usual and in the two previous years business did not begin June 3 Unti ’ lhe end of ' 1