Minister’s Warning To Wheatgrowers
(From Our Own Reporter)
WELLINGTON, July 4.
The Associate Minister of Industries and Commerce and chairman of the Wheat Board (Mr Shelton) today cautioned wheat growers that an increase in sowings would be likely to further reduce their return a bushel from the next harvest.
“It has been brought to my notice that heavy sowings of wheat are in progress or planned in some areas, with spring sowings still to be made, and this impels me to repeat certain of my remarks to the annual conference of the Dominion agricultural section of Federated Farmers at Timaru recently,” Mr Shelton said.
“I mentioned that if the full estimated surplus of 60,000 tons from the 1969 harvest is to be exported, most, if not all, of the 12c retention sum would be required to cover losses incurred. However, the further quantity to be exported is unknown at this stage, and it is therefore uncertain whether the 12c retention will fully cover the losses. I stated that a further increase in acreage for the current season and a continuation of the present weak international market might make it necessary to retain something in excess of 12c if
adequate provision is to be made • against possible losses on surplus wheat from the 1970 harvest “Should this happen and the full 20c be retained, the return from the 1970 harvest would become $1.25 a bushel for South Island growers. Growers should understand that this could well be the position next year. “While I have no wish to interfere with the plans of any growers, and want to make it clear that the area they sow in wheat is a matter for their own election, I cannot escape the observation that growers have it in their own hands to regulate the position if they wish to. “They have the choice either of accepting a lower return for increased production of wheat for export at heavy loss, or of attempting to grow sufficient for the New
Zealand market only for the price of $1.45 a bushel, fixed
efor the 1970 harvest for South i Island growers, assuming that Ino further reduction for losses on 1969 harvest wheat becomes necessary in 1970. “1 am aware, of course, that it is one matter to sow an area of wheat and another to know what it will yield. Nevertheless, the trend in wheat sowings and the weak conditions of the overseas market impel me to sound this note of caution. It may prove less costly to growers if they concentrate on producing New Zealand’s requirements, even if this necessitates at times importing a small quantity to make good a shortage, rather than on producing a large quantity, some of which will have to be exported at an uneconomic price.”
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Bibliographic details
Press, Volume CIX, Issue 32032, 5 July 1969, Page 46
Word Count
463Minister’s Warning To Wheatgrowers Press, Volume CIX, Issue 32032, 5 July 1969, Page 46
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