BIG RYEGRASS LIFT

Press, 13 August 1976, Page 8

BIG RYEGRASS LIFT

Herbage or small seeds prices have risen quite sharply since last harvest.

According to the president of the North Canterbury Grain, Seed and Produce Merchants’ Association, Mr P. R. W. Ellis, prices for ryegrasses have virtually doubled, and except tor the boom prices of two or three years ago are now a= high as they have been at any time. At the low levels ruling for ryegrasses earlier in the year farmers showed a strong reluctance to sell, and this in itself tended to lift prices with about half a normal crop being consumed in New Zealand and as well this year’s crop also being only about half of a normal size one. But Mr Ellis said that carryovers of seed from the two previous harvests had meant that there were adequate supplies for the local market. Then on top of that has come overseas interest stimulated by the drought in Europe.

As a result seed has started to move again with some sales being made to Europe in the last month or so.

White clover prices have also improved, but not as spectacularly as for ryegrass. In general terms the rise has been of the order of 25c per kilogram. At rhe beginning of the year the market for clover was pretty depressed with a bigger than normal carry-over of Danish white clover which was undercutting New Zealand white on overseas markets, and ro further depress the market the local New Zealand harvest was bigger than average. Again, however, growers’ reluctance to sell had a favourable effect on the local market, and as a consequence of the drought in Europe prices have gone up both here and overseas. These higher prices had been welcomed by both merchants and growers. Mr Ellis said, and the latter had shown an inclination to sell again at these levels.

Had clover prices not improved or declined fur-

ther, there is a feeling that fanners might have cut back on the area saved for harvesting next year, but the improvement in prices is permitting farmers to plan ahead again for closing areas for the next harvest and this is now more attractive in that no cultivation is required with this crop, with cultivation, costs having spiralled in the last year or so. In the circumstances it is expected that the white clover area will now tend to hold.

However, Mr Ellis says that currently both for ryegrasses and clovers overseas buyers are showing resistance to current price levels and the market has quietened down.

Oh the basis of first generation seed. minimum 99/90 purity and germination. rumex free, prices are quoted per kilogram as follows:

Ryegrasses — Ruanui, 40c to 42c; Ariki, 40c to 42c; Manawa, 50c to 53c; Paroa, 48c to 50c; Tama, 46c to 48c. White Clover — $1.36 to $1.37.