Wheat price rise ‘quite inadequate’

Press, Volume CXI, Issue 32635, 17 June 1971, Page 10

Wheat price rise ‘quite inadequate’

An increase of 5c a bushel in the basic price of wheat was the subject of criticism and derision at the annual conference of the Dominion agriculture section of Federated Farmers in Christchurch yesterday..

Several districts brought forward remits describing the increase as inadequate, and seeking “a more realistic” price. Mid-Canterbury and North Otago growers sought an immediate re-opening of negotiations, and a determined stand to obtain a substantial Increase.

One of the Mid-Canterbury delegates (Mr J. W. Davidson) described the new price as totally inadequate. He said it was obvious from the remits that all provinces regarded the price adjustment as quite inadequate to the point of being farcical. It had no relation to the upsurge in growers’ costs since the last review in 1965. Federated Farmers had assessed that it would require 38c a bushel to restore the grower to the position obtaining in 1965. The best example of increased costs in this period was the virtual doubling in the price of header harvesters. However, all equipment and machinery used in wheat growing, contractors’ charges and cartage costs had shown a similar increase.

In view of the fact that 40 per cent of the wheat grown in Canterbury was Arawa—-

which received no increase—it was obvious that the overall increase was nowhere near sc,

In addition, the day New Zealand devalued all producers for the internal market received an automatic reduction in price—but the 5c increase would not restore this. Nothwithstanding the Government’s “rather watery” price justification scheme, farmers and wheatgrowers’ costs were still rising. Freight charges had risen substantially since the 5c was granted.

There was no evidence that the 5c increase was anywhere near sufficient to ensure sufflcient wheat production to fill milling requirements. The Mid-Canterbury-North Otago remit was passed with three other remits on the same subject. The other remits comprised one from Southland objecting to the 5c increase and requesting that every effort be made to obtain “a more realistic price."

Otago sought an increase of 30c a bushel, while North Canterbury asked that in view of increased costs in all fields, particularly capital machinery costs, the price of Hilgendorf and other varieties be increased accordingly.