disappointing9

Press, Volume CVIII, Issue 31588, 27 January 1968, Page 36

disappointing 9

The drop in the wheat price announced on Thursday by the chairman of the Cabinet Committee on Wheat Prices (Mr AdamsSchneider) was not entirely unexpected but was nevertheless very disappointing to growers who had been encouraged to put money into storage for wheat on their farms, Mr R. G. Rainey, chairman of United Wheatgrowers (N.Z.), Ltd, said yesterday.

“When prices for farm produce have- generally been coming down and costs going up it is something that you cannot be very happy about,” he said.

Mr Rainey said he regarded the reduction in the premium on Hilgendorf as most unfortunate. This variety produced well in some areas, particularly Marlborough, but generally it was much lower yielding than Aotea in the main wheat-growing areas. As Hilgendorf was the variety responsible for keeping up flour quality it was most necessary to encourage its production. A scheme had been put forward through United Wheatgrowers which the Government had adopted in part. The scheme would have involved an advance payment to growers of $1 a bushel and if there had been a loss on the export of any surplus wheat, this would have been deducted before a final payment was made to growers at the end of the season. The effect of this would be that if there was a surplus it would earn overseas exchange but there would be no cost to the Government as growers would be bearing any loss. But the Government appeared to be more concerned with saving overseas exchange than making it, said Mr Rainey.

“Our calculations show that if we marketed one million bushels of surplus wheat at $1 a bushel the loss spread over the whole crop would amount to only about 3c a bushel,” said Mr Rainey. “Of course we have still to get a

surplus.” “The reduction of 10c coupled with the effects of devaluation represents a drop in price which could be as high as 35c a bushel,” Mr A. L. Mulholland, chairman of the North Canterbury agriculture section of Federated Farmers, said last evening. “The Minister seems to think that a surplus will still be grown under the reduced price. Time and economic conditions alone will tell whether farmers will continue to grow the present area or not. “The Lyttelton Harbour Board has spent, a large amount of money installing bulk grain facilities. What will be the outlook for wheat through the port if the Government forces us to accept a price which is very little more than $1 a bushel compared with its pre-devalua-tion value?” (Other comment, Page 19)