Quota System For Wheat Advocated

Press, Volume CIX, Issue 31984, 10 May 1969, Page 12

Quota System For Wheat Advocated

A quota system for wheatgrowers, similar to that which applies to town milk supplies, should be considered as a means of dealing with wheat surpluses, Mr R. G. Rainey said at the annual meeting of the agricultural section of North Canterbury Federated Farmers -yesterday.

Mr Rainey said that when the new variety of wheat 1020.01, was released, there could be a boom in production. “We don’t want to find ourselves in the position the Australian industry finds itself, with heavy wheat surpluses.” Something would have to be done towards limiting the acreage of wheat. In suggesting a quota system he said that the Wheat Board knew what brokers were handling and it would impose a quota. The brokers, in turn, would have to give fanners a quota to grow certain quantities. Mr Rainey said he thought the system would work. If there was a period of shortage, the board would take any but if the supply was plentiful a farmer would have to hold any excess on his quota. Mr Rainey said he did not favour a reduction in wheat prices to limit acreage. If this was done, there would only be many more farmers harder up than they were today. The chairman (Mr A. D. Mulholland) said the contract system would not meet the problem. There was nothing to stop a farmer growing wheat outside any areas grown on contract But he did not think delegates should be troubled about the situation at this stage. This year would show how the problem of a wheat surplus could be handled.

Mr Mulholland thought it would be quite wrong to sell wheat overseas at a discount and expect any loss to be accommodated by the retention

fund. This would have a bad effect on the whole industry. Hilgendorf Premium Earlier in the meeting, Mr G. A. Nutt had referred to the position of Hilgendorf wheat, saying that when it was originally given a premium it was hoped that it would make up to 10 or 11 per cent of the crop. Today it comprised 30 per eent of the crop and the bakers wanted it to stay at that Mr Mulholland said there was nothing wrong with Aotea, which was regarded as the basic variety. It compared favourably with fair to average quality wheats from all over the world. Hilgendorf even with a 20c a bushelpre-

mium, did noUpay to the same extent as other.'varieties, so why should the grower be a martyr for the breadeating public? On the motion of Mr N. Q. Wright, wheat surpluses and the suggestion of a quota system wiir be discussed atjthe next meeting of the incoming executive. Mr Rainey, commenting on the decision, said that if something was to be done, it would have to be done soon. Thousands of acres in Canterbury would give good yields, pf .the new variety..lf New Zealand was going in for export, then it Wds going in for. something vpry. big, in equipment and in cost. The first shipment from Bit# some months ago had cost $47,000 to load: ’The only thing I can see is for us to limit our acreage," ‘ he added.