1980 wheat prices 'not unrealistic’

Press, 21 December 1978, Page 21

1980 wheat prices 'not unrealistic’

Growers’ representativ have described the basic price for wheat harvested in 1980 as “not unrealistic" and “reasonable acceptable.” The price of $137 a tonne, an increase of 59.50, or 7.45 per cent on what will be paid for the crop which will be harvested in 1979, has been announced by the Minister of Trade and Industry (Mr Adams-Schneider).

However, growers’ representatives were disappointed that the Government had not gone a

little further and accepted the figure of $l4O a tonne agreed on by growers and the Wheat Board.

Mr Adams-Schneider said he believed that the price approved by the Government was reasonable to growers and would probably result in selfsufficiency in wheat in 1980.

The Government has decided to maintain the premium of 20 per cent on the Hilgendorf variety and the discount of 5 per cent on Arawa. But the discount on Karamu has been increased from 10 to 15 per cent.

The chairman of the Dominion agriculture section of Federated Farmers (Mr A. L. Mulholland) said he believed that many wheatgrowers would fin’d the basic price reasonably acceptable. But for three years now, he said, growers and the Wheat Board had come up with an agreed price that they had presented to the Officials’ committee, which advised the Government. In each of these years, either because of the advice of the committee or some other factor, the price announced by the Government had been less than that agreed upon by the two parties. It was regrettable that their recommendation had not been taken up. Mr Mulholland said.

The chairman of the wheatgrowers’ sub-section of Federated Farmers (Mr J. H. Mitchell) said that the price announced was not unrealistic but growers would have been happier if the price agreed upon by growers and the board had been accepted. An important point was that with the scheme under which a part of

growers’ returns was retained, the disposal of any surplus produced was not a charge on the taxpayer. While the new price represented an increase of just under 8 per cent, Mr Mulholland said that a wheatgrowers’ survey and also the economic service of the Meat Board and Wool Board had shown proven cost increases of at least 15 percent. It was. however, recognised that the Government, in setting the price, did not take into account only cost of production increases and tended to balance these against other factors like the overseas price of wheat.

Mr Mulholland said he was still concerned about the plight of the smaller grower, on whom the cost-price squeeze had fallen very heavily. Whether the price would result in self-suffi-ciency in wheat production would really depend on the decisions of individual growers up and down the country. Their attitudes would be coloured to a great extent by the outlook on alternative forms of production and in particular lambs, old ewes, and wool, and the state of the freezing industry which really had a greater influence on the area sown in wheat than the price itself, said Mr Mitchell. Mr Mulholland described the increase in the discount on Karamu as premature. To ail intents and purposes there was still only one variety of spring wheat and that was Karamu.

The new varieties, Rongotea and Oroua, were regarded as replacements for Karamu, but until they were accepted for plant breeders’ rights they could not be released commercially. Even if they were released according to schedule, there was only sufficient seed to plant 2800 ha next season, put of about 95,000 ha required to obtain self-sufficiency.

Both farmers’ spokesmen welcomed the early announcement of the price, so that farmers were better able to plan their farming programmes. Mr Mitchell also said that the price increase should have very little effect on the price of bread.