Growers to pay for wheat-sale losses

Press, 18 December 1976, Page 3

Growers to pay for wheat-sale losses

Wheatgrowers will have $6. a tonne retained from pay-1 ments for wheat from the! coming harvest. Under arrangements be-) tween the Government and) growers, the Wheat Board) has authority to retain a pro-1 portion of the price payable; to growers to cover losses I and costs involved in the (handling, marketing, and stor-[ age of wheat, surplus to' domestic requirements for) any year. In a joint statement yesterday the chairman of the wheatgrowers’ subsection of Federated Farmers (Mr J. H. Mitchell) and the general manager of the Wheat Board (Mr E. R. W. Reed) said that contrary to the pre-harvest estimates for the 1976 crop, there had been a surplus for which no retention had been arranged. However, losses incurred in) the marketing of 14,250 tonnes of surplus wheat exported from Timaru in September and the costs of handling and storing about 20.000 tonnes, which was being carried forward in storage, would be recovered from [the $6 a tonne retention. This' [amount had been agreed

.upon recently by the wheat-1 [growers’ subsection and the'. ! board, and included an allow-i lance for any costs incurred! [in disposing of a possible! [surplus from next year’s [ harvest. ' If the full retention is not [used, a refund, including inI terest on any unexpended money, would be made at the lend of the season. ' Mr Reed said that the export of wheat in September had been made after discus- ■ sions between growers and i the board. Losses on exports ’ were borne by the growers. When it became clear that more wheat was likely to be I surplus to requirements more : discussions had been held : with growers and one of the factors considered was the ■ likelihood of a loss because the market had fallen since the export sale. j It seemed prudent to store - this wheat. The costs were a charge on the growers’ retention fund and this was the agreement reached between growers and the board. Mr Reed said that storage had been arranged in the! North Island for about 20,0001 [tonnes, which was estimated) !to be the surplus to this!

year’s domestic requirements. ; I'he wheat would be supplied |to North Island users, to-j getber with the early wheat) (from the new harvest. I It was inevitable that, the! supply of 1976 wheat to) North Island users early in: 1977 could have some effect) on the disposal of prompt) lines from next year’s har-j vest, but wherever possible! steps would be taken to re-i duce any delay. The decision to carry the I 20,000 tonnes forward into [ 1977 had been made with the) agreement of growers’ repre-l sentatives. Messrs Mitchell and Reed' said that storage increments paid to growers for wheat delivered after the harvest had been revised after negotiations between the wheatgrowers’ subsection and the board. The Secretary of Trade I and Industry had formally) approved a scale of storage | increments beginning at $2.50; a tonne for deliveries in April! and rising by $1.25 a month! to reach a maximum of $lO a tonne in October. As usual! the increments applied a[ month later in areas south of! the Waikouaiti-Queenstown line.