Wheat surplus expected again in 1973

Press, Volume CXII, Issue 33106, 22 December 1972, Page 9

Wheat surplus expected again in 1973

If the wheat crop continues to develop favourably and it is harvested under good conditions it is likely that New Zealand will have surplus wheat again next year.

The acreage of wheat sown tliis year has been similar to last year and some 30,000 tons from last season’s crop has been exported.

“The scale of production of wheat during the past five seasons has been higher than in any comparable period before,” the general manager of the Wheat Board. Mr L. C. Dunshea, said this week.

“During this time production of two other cereals — barley and maize — has also been at record levels. Since production of these cheaper priced grains has increased substantially, there has been a significant decline in the sale of wheat, for feed. “The aim in New Zealand has been for self-suffi-ciency in wheat production. For obvious reasons this cannot be achieved in practice and having regard to the vagaries of seasons either a short-fall or a surplus results.

“In three out of the last five seasons a surplus has eventuated, resulting in exports in each of these seasons — 1967-68, 1968-69 and 1971-72.

“This year some 30,000 tons of surplus wheat, or about I.lm bushels, have been exported, and so far as I am aware, for the first time there were also substantial exports of barley this year and some maize was also exported.

“In New Zealand the practice has been to meet costs and losses in marketing surplus wheat by way of a retention from growers’ payments. This has been done in agreement between growers and the Government.

The Ministry of Agriculture and Fisheries has estimated that the area sown to wheat this year for har-

vest early next year is about 282,000 acres, which is much the same as the area estimated as having been sown last year — 286,000 acres. The indications are that there have been increases in sowings in the North Island and Canterbury but a reduction in Southland sowings. “We must, therefore, expect another surplus next year if the crop continues to develop satisfactorily and is harvested in good condition.

“In company with some members of the Wheat Board I recently visited the main wheat growing centres throughout the country. Apart from some fairly restricted areas where the rain came too late to provide full benefit to some crops, crops for the most part look very’ promising indeed and the prospects appear to be favourable pro-

viding the weather favours further development and the harvest period.’ “With the prospect of another surplus in 1973 farmers are advised to provide for the safe storage of their crops against deliveries which will be made throughout the year, including some which will not eventuate until the end of the season. This is inevitable in a position of self-sufflcency and even more than that. “In advising farmers to this effect and requesting them to pay particular attention to the need to store their grain at a safe level of moisture and to reduce screenings, including broken grains to a minimum, I am well aw'are that for most farmers this has become a matter of routine procedure. After all the knowledge of farmers and the facilities available were sufficient to meet the conditions which prevailed in the harvests of 1968 and 1969, when there was record production of 16.25 m and 16.8 m bushels respectively. “Finally transport is available to move the large crop next year. Shipments from the South Island to the North Island will begin from the start of the harvest and will continue regularly , throughout the year until | the 150,000 tons estimated to

MR DUNSHEA

meet North Island requirements, is finally shipped. “The handling arrangements will, of course, be considerably eased if the weather at harvest enables the crop to be harvested dry and in good condition. “The Wheat Board has completed arrangements to ensure that a fair share of Hilgendorf wheat (expected to be harvested in greater quantity this season) is shipped to the North Island mills, while still leaving a generous proportion to be absorbed by South Island mills,” said Mr Dunshea.