Australia Seeks To Limit Wheat Crop

Press, Volume CIX, Issue 31981, 7 May 1969, Page 9

Australia Seeks To Limit Wheat Crop

Australia is seeking to limit the size of its 1969-70 wheat crop. The Minister of Primary Industry in Australia, Mr J. D. Anthony, announced last week that deliveries from the crop would be limited to 357 m bushels.

The chairman of United Wheatgrowers (N.Z.), Ltd (Mr R. G. Rainey), and the chairman of the agricultural section of North Canterbury Federated Farmers (Mr A. L. Mulholland) said last evening that there had been no talk of restricting the wheat acreage in New Zealand at this stage, although the countrynow appeared to be producing wheat in excess of its requirements. Mr Rainey said that growers had an agreement with the Government to take care of any surplus, with growers having to meet any loss on the disposal of surplus wheat However, if anyone could produce a foolproof scheme for limiting the acreage of the crop would be of some use, Mr Rainey said. But this would probably be difficult. Mr Mulholland said that in I the meantime they wanted to see how the scheme to i retain part of the price ofj milling wheat to cover any; possible loss on export of; surplus wheat worked. Mr Mulholland said that a contract system for growing wheat had been discussed, and this had been recommended by the Committee of Inquiry into the Wheat, Flour and Bread Industries some years ago, but when it had been looked at both growers and the Wheat Board had not been very happy about it Mr Anthony said that in Australia the Wheat Board would be guaranteed enough

money to make the first payment of $l.lO a bushel on the quota. If the quotas were not implemented and if the quantity of wheat delivered to the Wheat Board exceeded 357 m bushels then the first advance would have to be something less than $l.lO a bushel.

Mr Anthony said that the guaranteed $l.lO first payment, plus storage, handling and administrative costs would total s44om. With a likely overdraft of 8200 m from the Reserve Bank, there could be as much as s64om advanced to the industry in | the early months of next year. “Let me make it clear that ’the sums I have mentioned will not be exceeded," Mr Anthony said. The restriction proposed by the Australian Wheat ; Growers’ Federation follow 1500 m bushel crops in the last itwo seasons resulting in severe storage problems.