Fed. Farmers Contest New Wheat Price

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

Fed. Farmers Contest New Wheat Price

(New Zealand Press Association)

WELLINGTON, January 26. By deliberately taking advantage of the current economic situation and low prices to farmers for other products the Government had forced down the basic price for milling wheat to the grower, the chairman of the Dominion agriculture section of Federated Farmers (Mr S. J. Lister) said in a statement today.

There would be widespread protest from farmers who would see in the price reduction a threat to the long-term stability of the wheat growing industry, he said.

Mr Lister said that the Government had broken faith with farmers by abrogating the understanding with the industry which had been recommended by the 1962 Committee of Inquiry that the wheat price should be made known three years in advance.

“There Is no certainty that the current season will produce an embarrassing surplus of milling wheat, and in fact the full effect of the snow and frost damage in Mid and South Canterbury crops is not yet known,” he said.

“By announcing a basic price of 10c a bushel below the basic price for the current season and making this subject to a further withholding of 10c a bushel the Government has attempted to hide the full price reduction it has imposed on the grower. Growing Risk “How much the grower gets back of this 10c will be in the lap of the gods,” said Mr Lister. He said that the growing of wheat was an enterprise subject to considerable risk of reduced yields because of disease or drought and this was recognised by the committee of inquiry, which advocated a small carry-over from season to season as an integral part of making New Zealand wheat production independent of imported wheat Best Quality The reduction ot 5c in the premium paid for the highquality milling wheat Hilgendorf would also cause considerable concern, he said. It was obvious that every incentive should be given to the production of the highest quality wheat if the consumer were to benefit in obtaining the best quality bread. As the monopoly interest involved in the marketing of milling wheat, the Government had acted arbitrarily and without regard to the longterm interests of wheat growing, Mr Lister said.