Feed-grain industry ‘in state of change’

Press, 29 August 1980, Page 16

Feed-grain industry ‘in state of change’

The New Zealand feedgrain industry is in a state of change, according to the chairman of the Dominion agriculture secdon of Federated Fanners, Mr N. Q. Wright. It was changing from being an industry based on domestic prices to one based on world export prices, in the same way as had happened to. the wheat industry, he said. Commenting on recent statements by the Canterbury (N.Z.) Malting Company, the consortium of grain merchants, and the Pork Producers’ Council, he said that a deputation of farmers had met the merchants’ consortium at least three times to put the growers’ case. The farmer leaders believed that their opinions reflected the groundswell of barley growers’ views. The growers had offered to work closely with the merchants in the con-, sortium on a pool system\ with the merchants acting"' as agents, but this offer ' had been rejected. The events of the last three weeks had shown farmer leaders that their judgment and the feeling of barley growers in the matter had been correct. The growers were not trying to oust merchants from their job. Farmers relied on merchants for many services but this did not stop growers from

going -it alone if they wished to. The efforts of merchants to create export markets and their contribution to the barley industry in the past was appreciated. Previously farmers had not. sold on their own account in the

open export market.- . The barle-- growers’ cooperative gave growers two choices. One was a contract at • a set price. The other provided an opportunity ■ for the grower to. sell .his crop through the. 1 co-operative at the time ! of harvest when the market was - known, as farmers did with most other produce, such as small seeds, meat, and wool. Irrespective of the

price received, it was the real price at the time. : .

There was no reason why local requirements should not be met but those requiring barley should make their requirements known. This was not always the case. Mr Wright said he could see no reason why . a barley grower should be forceci to retain a part of his crop for local use unless the user was prepared to sign a contract for it at sowing time.

He did not believe it was the farmer’s duty to maintain a supply of grain for stock feed in the event of drought or other emergencies. That .was the stock owner’s duty. Pig producers had hat comparatively cheap barley in the last few vears. If. there was not. a big increase in the price in the coming year there would be little barley for them anyway. Pig producers were concerned about new prices for barley, but there appeared to be no limit to the price paid for weaners. .. -

The co-operative, which had been set up by farmers, was prepared-to work for farmers and all of the industry on, a businesslike basis. It meant that the growers now had an opportunity, tb sell their produce in a similar manner to other sections of the industry. , .