Southland wheat problems reflect in Canterbury

Press, 4 July 1983, Page 6

Southland wheat problems reflect in Canterbury

Difficult harvesting conditions and a greatly reduced production of milling-grade wheat in Southland have resulted in a slower offtake of wheat from Canterbury farm silos, according to the Wheat Board.

Although movement of wheat from Canterbury storage has until now been faster than last year’s this will now slow, the general manager of the board, Mr A. G. Elliott, has advised.

The reason is the board’s need to keep South Island wheat in the South Island to compensate for the greatly reduced Southland production.

Some Canterbury farmers have reported financial problems because of the slow movement of wheat from their silos, and consequent slow pay- ment. A director of the board, Mr G. E. Rennie, told a meeting of the agriculture executive of North Canterbury Federated Fanners that the offtake of wheat from farm silos in Canterbury was slowed “to the rate that it is being eaten in the South Island.”

Canterbury wheat was going to Otago and Southland millers at an average

rate of 425 tonnes a week, said Mr Elliott.

The board now expects to receive only 36,000 to 40,000 tonnes of Southland milling grade wheat, compared with a pre-season estimate of 91,000 tonnes and actual deliveries for shipment last year of 66,000 tonnes. The Southland harvest is continuing under difficult conditions but the total crop could be more than 50 per cent undergrade or not harvested.

The Southland crop difficulties have significantly reduced the South Island and New Zealand 1983 harvest totals, raising the likely level of importation of Australian wheat to more than 100,000 tonnes this year. Mr Elliott said negotiations were proceeding with the Australian Wheat Board to secure supplies from the 1983 Australian harvest, beginning in November. Mr Rennie said that it had been feared that imports into the South Island might be necessary at some time this year, but this was now thought unlikely.

The chairman of the Dominion Agriculture section of Federated Farmers, Mr N. Q. Wright, said that

not much could be done for individual Canterbury farmers in difficulties because of the slow offtake. A proposed prepayment scheme was not yet in use.