Wheat exporters meet to ponder surplus forecast

Press, 19 August 1977, Page 6

Wheat exporters meet to ponder surplus forecast

NZPA-Reuter Washington The world’s four big) wheat-exporting countries) are meeting in Washington) to co-co-ordinate their mar-1 keting policies, after an American forecast that the) world will have an unprecedented surplus of wheat by'l early next year. The forecast by United States Agriculture' Depart- ! ment experts, who estimated 1 ' that the surplus would reach! 106 million tonnes, camel

after dire warnings only two [years ago of vast food ishortages. The countries meeting tn Washington — the United States, Canada, Australia, and Argentina — will be preparing their policies for full-scale international negotiations next month aimed at stabilising prices and supplies. The September negotiations will deal with the posi sibility of a new interi national agreement under [Which wheat would be [stored in times of plenty . and released in the event of [crop failures. j The four big exporters ;have all expressed general 'support for such a scheme, jand they will try in their jtwo-day Washington meeting

ito adopt a common position. The United States has already taken the initiative in announcing it will store at (least nine million tonnes of (wheat for up to three years by buying it from farmers at a guaranteed price higher 'han today’s depressed market levels. But the United States has said it has no intention of becoming the world’s grantary. I The United States Agriculture Secretary (Mr Bob

lißergland) is expected to I emphasise this position 'shortly by announcing that il support payments to wheat l| farmers next year will apply (Only to a restricted acreage i America wants other • countries to adopt similar istorage schemes, and strongly feels that importers I should share the cost. ( The London talks will also ■ discuss the possibility of j minimum and maximum world prices, as in other commodity agreements. ! The United States is the only country where exports 'are handled almost exclusively through private companies. / Other countries market ,(their wheat through national boards, often at subsidised /prices.