Wheat industry

Press, 8 November 1984, Page 20

Wheat industry

Sir,—Mr B. S. Hill (November 5) refers to “the wheat milling monopoly that continues to push up the price of bread, which is fast entering the luxury food bracket.” Presumably his reference to monopoly refers to the New Zealand Wheat Board which has been termed a monopoly in the public interest. The Department of Statistics’ monthly abstract for September, 1984, shows that out of Australia, France, Japan, Singapore, the United Kingdom and the United States of America, New Zealand has the lowest bread price by a considerable margin — not bad for a monopoly?—Yours, etc., A. G. ELLIOTT. November 6, 1984.

Sir,—Your leading article on November 2 presumed that the quality of flour and bread is in need of improvement As a discerning consumer, I am not aware of any quality deficiencies in our local product. On the evidence of my experiences overseas, the New Zealand product does not suffer by comparison with its overseas counterpart. I am concerned that an increase in the level of flour and bread quality will mean more cost to the consumer, especially when we are being expected to tighten our belts to help the under-privi-leged in this country. In view of the comments contained in your editorial of April 3, 1984, which are at variance with yours of November 2, how will the Commerce Act protect the public interest and what evidence do you have to conclude that the quality of flour and bread is unsatisfactory?—Yours, etc., MRS H. E. SHIRTCLIFF. November 5, 1984. [The report of the Department' of Scientific and Industrial Research tabled in Parliament this year, when referring to the Wheat Research Institute’s cereal science conference, notes on p. 28: “Australian flour is generally better for

bread-making than flour milled from New Zealand wheat...” and notes, too, that the Wheat Board had agreed to a more rapid release of three new wheat cultivars, of superior bread-making quality, to help meet the challenge posed by Australian wheat and flour. One justification given for the increase in the price of bread last September was that, because of poor local wheat, more wheat had to be imported to provide sufficient flour of bread-making quality. The application of the Commerce Act to flourmilling and bread-making will make it possible to prevent monopoly control or collusion between large buying groups. The safeguard to competition thus provided will help to restrain cost increases, in line with the correspondent’s wishes.—Editor]